Tuesday, 18 October 2011

US economy & Occupy Wall Street - On the Edge with Max Keiser

In this edition of the show Max interviews Jeff Berwick from dollarvigilante.com. He will talk about the latest on the US dollar devaluation and US economic outlook in general. He also talks about the Occupy Wall Street and Occupy the Fed movements which are spreading across America.

Inflation or deflation ? With multiple global currencies a destruction of the US Dollar or Euro compared to commodities and the other "surplus" or well managed economies/currencies is on the cards. The whole system may not completely fall as those countries running "good" economies will see a flight of capital towards them - if not into Gold or other assets. The Fiat money will go somewhere before what remains of it becomes worthless.

It is possible that as austerity measures bite, and things slow down, businesses will lower prices. That will initially cause deflation. However, as an economy gets worse and the financial sector, with their leveraged debts, also gets hit we should see a devaluation of the currency of that country. Significantly lower Dollar or Euro values mean higher oil prices and inflation. You could then see stagflation.

[Posted at the SpookyWeather blog, October 18th, 2011.]

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