There has been recent discussions about what AGI might do if the economy improves. Here is my own analysis of the present situation:
Perceived inflation must never ever be allowed to be perceived to hit zero (which it has), because corporations and governments start stockpiling trillions of dollars (which they have). Then, if and when there is some inflation, governments and corporations will start spending all their treasure and hyperinflation will be upon us. Hence, to avoid hyperinflation, perceived inflation MUST be kept to zero - * forever*. Still, the governments and corporations keep stashing away all the money they can, so the supply in circulation diminishes, so the FED keeps pumping in more just to keep the economy from nosediving, making any potential future hyperinflation even worse. There are SO many things that could throw our economy into hyperinflation - a wonderful new technology, a major disaster, an economic panic, a crash of the bond market, stupid legislation, etc. Until then, we are doomed to continue in our some old present doldrums. My own guesstimate is that a hyperinflation would probably amount to dollars devaluing to ~10% of their present value. So, polish your crystal ball and see if yours shows something different than mine. Steve ------------------------------------------- AGI Archives: https://www.listbox.com/member/archive/303/=now RSS Feed: https://www.listbox.com/member/archive/rss/303/21088071-c97d2393 Modify Your Subscription: https://www.listbox.com/member/?member_id=21088071&id_secret=21088071-2484a968 Powered by Listbox: http://www.listbox.com
