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Gas may be way off it's high, but if you price real estate in terms of gallons of gasoline, you'll see the actual value decline. If you measure against dollars, you'll always be supremely disappointed. The monetary effects of QE2 will be felt in 2011. But, we are already seeing the price increases occurring, yet real estate is still in the crapper, even with 4% interest rates. Wait 'till they go higher.
Real estate is losing value and hasn't even begun to bottom out. It's even lost 20% of its value in the "invincible" Triangle area and your beloved Chapel Hill (we're late to the party due to the latent effect of evaporated transplant money)
Uh lower gas prices, lower home prices, low wage growth and low interest rates do not suggest inflation, but rather the opposite. Prices don't generally fall during inflation. BTW the QE2 is a drop in the bucket given the grand scheme of things.
About Chapel Hill where are you getting those figures, because I haven't seen anything like that (what I have read is around 3%ish decline)...Are you still mad that we didn't vote the way you claimed we would in 2010?
Last edited by Randomstudent; 11-29-2010 at 03:57 PM..
Uh lower gas prices, lower home prices, low wage growth and low interest rates do not suggest inflation, but rather the opposite. Prices don't generally fall during inflation. BTW the QE2 is a drop in the bucket given the grand scheme of things.
About Chapel Hill where are you getting those figures, because I haven't seen anything like that (what I have read is around 3%ish decline)...Are you still mad that we didn't vote the way you claimed we would in 2010?
Actually the policies in place are designed to stop the possibility of deflation. Deflation is much harder to control with monetary policy than inflation. Right now there is no wage pressure, no pressure on housing prices and consumer demand has not really picked up yet. All that tends to argue against overall inflation although food inflation may be higher.
Location: Jonquil City (aka Smyrna) Georgia- by Atlanta
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Quote:
Originally Posted by BentBow
Why China is jumping ship...
Why world confidence in the U.S. dollar is evaporating...
PLUS, how the Fat Cats in Washington are lying through their teeth about the Federal Deficit...
Ignore these sober warnings and you may as well take your savings... your retirement—and your very financial security—and KISS THEM GOODBYE.
It's no secret that our government is bleeding the single greatest gushing of red ink in history.
And no institution on earth—not the White House, not Congress... and certainly not the abomination we so politely refer to as the 'Federal Reserve'—has the faintest hope of slowing it—let alone STOPPING it.
Despite what the Fat Cats and Bureaucrats try to tell you, the undeniable truth is that Washington has completely LOST CONTROL of the federal budget.
And far worse than that, they're oblivious to what this means for you and me—namely, that a nightmarish wave of hyperinflation is set to demolish everything we've EVER worked for.
Whatcha gonna do?
Buy gold, buy foreign currency or buy commodity futures. Also, if you do not own any land (by own I mean YOU have the title and not Bank of America), you should try to get some- anywhere you can that is fertile.
Buy gold, buy foreign currency or buy commodity futures. Also, if you do not own any land (by own I mean YOU have the title and not Bank of America), you should try to get some- anywhere you can that is fertile.
Do you A.) Know what hyper-inflation is? and B.) What causes it?
Don't listen to some guy or gal who doesn't know either yet passes it off like he/she does. Look up cases in the past and answer the above two questions.
Then look up Disinflation versus population growth, and then revisist the question again.
I am actually getting concerned that long term rates are actually too low and disinflation is going to be a problem. Not even sure we're going to hit 6% 30-year mortgage rates by the end of 2011, which was one of my bets.
It's no secret that our government is bleeding the single greatest gushing of red ink in history.
And no institution on earth—not the White House, not Congress... and certainly not the abomination we so politely refer to as the 'Federal Reserve'—has the faintest hope of slowing it—let alone STOPPING it.
For someone that postures themselves as so informed, I am surprised that you didn't mention that our deficit is largely due to the military spending, and the interest we have to pay on the national debt caused by OUR importing products and services.
Both can certainly be controlled, and I believe that when Americans stop thinking of themselves as victims, and start realizing they are part of the process, we can solve the problems.
As I recall, there was a surplus in reserves when President Clinton left office.
plenty of infation in the stores, especially the food stores
coffee has double in price in the last 5 years
sugar is up
meats are way up
tomatoes (especially the canned ) is way yp
peppers used to be .99 a pound, now are $4 a pound
and many things have not only seen an increase in price, but a decrease in product size
yes there is inflation
the buying power of your dollar has gone down big time in the last 4 years..and even bigger time in the last 20 years
That's not hyper inflation. News flash! Prices move primarily due to supply and demand. Commodity prices tend to move in cycles of low prices and low investment in production which eventually ends up causing a situation where there is not enough supply to meet demand, so prices rise which both blunts demand and brings more production on line. The period roughly from the early 1980's through the late 1990's was a period of low investment and high supply. Commodity prices have been generally moving up for ten years. Also, as global growth has firmed up over the last year, demand, and therefore prices, have followed.
Has low interest rates and credit creation pushed prices up more than otherwise? Yes, but primarily because of the stimulative effects on economic activity. You also have to remember that when our central bank has interest rates at zero, it also stimulates economic activity all around the world. This has been the primary reason commodity prices have been going up recently.
That's not hyper inflation. News flash! Prices move primarily due to supply and demand. Commodity prices tend to move in cycles of low prices and low investment in production which eventually ends up causing a situation where there is not enough supply to meet demand, so prices rise which both blunts demand and brings more production on line. The period roughly from the early 1980's through the late 1990's was a period of low investment and high supply. Commodity prices have been generally moving up for ten years. Also, as global growth has firmed up over the last year, demand, and therefore prices, have followed.
Has low interest rates and credit creation pushed prices up more than otherwise? Yes, but primarily because of the stimulative effects on economic activity. You also have to remember that when our central bank has interest rates at zero, it also stimulates economic activity all around the world. This has been the primary reason commodity prices have been going up recently.
inflation is a rise in the general level of prices of goods and services in an economy over a period of time. When the general price level rises, each unit of currency buys fewer goods and services. Consequently, inflation also reflects an erosion in the purchasing power of money – a loss of real value in the internal medium of exchange and unit of account in the economy
so yes when prices of goods have risen dramaticly in the last 5 years.......it is inflation
as far as the hyperinflation (which I was not reponding to)......Economists generally agree that high rates of inflation and hyperinflation are caused by an excessive growth of the money supply....so when the fed keeps printing money and we have a large money SUPPLY (which is what is happening now)...that is by defination hyperinflation
That's not hyper inflation. News flash! Prices move primarily due to supply and demand. Commodity prices tend to move in cycles of low prices and low investment in production which eventually ends up causing a situation where there is not enough supply to meet demand, so prices rise which both blunts demand and brings more production on line. The period roughly from the early 1980's through the late 1990's was a period of low investment and high supply. Commodity prices have been generally moving up for ten years. Also, as global growth has firmed up over the last year, demand, and therefore prices, have followed.
Has low interest rates and credit creation pushed prices up more than otherwise? Yes, but primarily because of the stimulative effects on economic activity. You also have to remember that when our central bank has interest rates at zero, it also stimulates economic activity all around the world. This has been the primary reason commodity prices have been going up recently.
News Flash:
Your dollar bill is not worth what it was. FACT.
So now, it takes more of those dollars to buy the same amount of commodities and metals.
Lets take gold... Ya I know gold, gold, gold.
Back when gold was cash, before they took it all away for paper. A $20 gold piece would buy food other supplies to make it half a year, or so. Will a $20 dollar bill buy that today? NO it won't. it won't get you a day, now.
Yet, that $20 gold piece will still buy you enough to make it at least 6 months, in today's world.
So tell me, have things gone up in price, or is our paper money not worth as much as it once was?
Now housing... there is your supply and demand. Too many homes and not enough people that can afford them. Of coarse the price is going to come down, as the price was inflated for homes for 20 years now.
If you see commodities go up but metals steady or going down, then it is a supply and demand deal, but when they both are going up against the dollar bill, that is inflation of our dollar. How many dollar bills, does it take to buy an oz. of gold, today?
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