DiscussWorldIssues - Socio-Economic Religion and Political Uncensored Debate - View Single Post - Negative Real Yields, Too Much of a Good Thing

**wmcelesta** · 10-30-2011, 06:52 PM

It is an interresting chart, but one should also keep in mind that they stopped meassuring the CPI in the same way in the 90's, prior to that they were meassuring it against a constant basket of goods and services, now they change the weighting in favor of products that doesn't gain so much in price, so I think it is likely that we have allready had -6% or below that in real return of short treasury bills.

Another difference was that in the 80's the government debt was meassured in Billions, now it is in Trillions, back then they could raise the interest into double digits, and government could afford to pay the interest on debt, at this point society would collapse. The rate in the rise of POG got really steep in the 70's but we have still not seen that yet...

Taken together I think we are destined to hyperinflationary collapse, which of course is a different monster compared to the stagflation experienced in the 70's, that drove the gold price back then...

10-30-2011, 06:52 PM	#2
wmcelesta Join Date Oct 2005 Posts 584 Senior Member	It is an interresting chart, but one should also keep in mind that they stopped meassuring the CPI in the same way in the 90's, prior to that they were meassuring it against a constant basket of goods and services, now they change the weighting in favor of products that doesn't gain so much in price, so I think it is likely that we have allready had -6% or below that in real return of short treasury bills. Another difference was that in the 80's the government debt was meassured in Billions, now it is in Trillions, back then they could raise the interest into double digits, and government could afford to pay the interest on debt, at this point society would collapse. The rate in the rise of POG got really steep in the 70's but we have still not seen that yet... Taken together I think we are destined to hyperinflationary collapse, which of course is a different monster compared to the stagflation experienced in the 70's, that drove the gold price back then...
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