Oct
10th
Sat
10th
The Deflation To Inflation Tipping Point
I agree with Chris Martenson when he says that the switch from deflation to inflation will be sudden and driven by social snowballing effects, independently from what will trigger it.
But it could be sooner than that. Or later. The point here is that we really don’t know and because our monetary system operates on faith, it means that we have to be prepared for the fact that a shift could happen at any time. Nobody can predict when a school of fish will suddenly turn to the left. Who knows what final trigger will cause a critical minority to suddenly determine that they’d rather hold things than paper?It is more about the structure of system than contingent causes and effects and guessing the tipping point trigger: $800 billion sitting in banks’ excess reserves or unsustainable government debt issuance synchronized for every country on earth, add massive systemic risk to the global economy.
The structure of the financial system just added more feedback loops that are ready to be triggered and unleash their effects in avalanche patterns.
