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Boats, houses, and some cars are all going to be super cheap in America. Anything perceived as a luxury will be a bargain for richer foreigners wanting to scoop them up. "Tiny houses" might survive some of the drop due to the insanely low cost to heat/cool the dwelling. Any assets associated with an austere lifestyle (extremely high efficiency vehicles, wood burning stoves/heaters, etc) will also survive some of the crash.
Food, energy, cotton, coffee are all going to be super expensive in America. Anything necessary for survival and relatively straightforward to trade on a global scale will be increasingly harder for Americans to obtain. They will sell their 2nd homes, fishing boats, extra cars and inevitably sell their primary homes and vehicles and downsize to a rental lifestyle just to make ends meet. Simply put, Americans will exhaust the equity of their real assets to purchase that which they need to survive, until there is nothing left (just like they did when they maxed out their CCs).
The government will repeat what failures like Allende did, and that is to enact capital/price/wage controls. All this will do is create shortages and black markets. Government will use terrorism as a scapegoat to go after these "unpatriotic capitalists" who are simply trying to sell a product for what the intersection on the supply/demand curve calls for. It will fail, but some people might be put in jail or executed to be made examples of, maybe throw in a trumped up charge of terrorism to make it seem like the gubmint is fighting "the good fight". The threat of capital punishment will simply be seen as the "cost of doing business" for those who operate a black market. The threat of capital punishment didn't stop the French from creating an underground economy, and it won't stop Americans.
It's not rocket science, folks.
Last edited by summers73; 11-30-2010 at 08:23 AM..
Boats, houses, and some cars are all going to be super cheap in America. Anything perceived as a luxury will be a bargain for richer foreigners wanting to scoop them up.
Food, energy, cotton, coffee are all going to be super expensive in America. Anything necessary for survival and relatively straightforward to trade on a global scale will be increasingly harder for Americans to obtain. They will sell their 2nd homes, fishing boats, extra cars and inevitably sell their primary homes and vehicles and downsize to a rental lifestyle just to make ends meet. Simply put, Americans will exhaust the equity of their real assets to purchase that which they need to survive, until there is nothing left (just like they did when they maxed out their CCs).
The government will repeat what failures like Allende did, and that is to enact capital/price/wage controls. All this will do is create shortages and black markets. Government will use terrorism as a scapegoat to go after these "unpatriotic capitalists" who are simply trying to sell a product for what the intersection on the supply/demand curve calls for.
It's not rocket science, folks.
That was a good clear explanation.
They will scream fear mongering.
It is scary how it is all unfolding just as those they try to silence, have said it would. That is frightening! Silence what we now know was the truth. VERY SCARY!
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?
I hate to tell you, but there was also inflation when we were on the gold standard.
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
Yes, we have inflation. Very low inflation. Hyper inflation generally refers to inflation of over 50% each month. Meanwhile, we have been putting in CPI rates as low as they've been in 50 years.
I've been reading stuff from gold bugs telling me of imminent doom and collapse for twenty years and that was why we should all buy gold and hole up in a cave somewhere. For half of that time gold went straight down. Gold has since gone way up. However, I think it has more to do with the commodity price cycle I mentioned in my earlier post than any sort of imminent collapse or hyper inflation.
It's fine though, I know I won't change your mind. Fanatics are like that. Have fun with your gold.
Yes, we have inflation. Very low inflation. Hyper inflation generally refers to inflation of over 50% each month. Meanwhile, we have been putting in CPI rates as low as they've been in 50 years.
I've been reading stuff from gold bugs telling me of imminent doom and collapse for twenty years and that was why we should all buy gold and hole up in a cave somewhere. For half of that time gold went straight down. Gold has since gone way up. However, I think it has more to do with the commodity price cycle I mentioned in my earlier post than any sort of imminent collapse or hyper inflation.
It's fine though, I know I won't change your mind. Fanatics are like that. Have fun with your gold.
you confuse me with one of the other people
1. I never said anything about hyper inflation in my first post...I did mention it in response to you since the defination is....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
2. I never said anything about gold..to me it would be foolish to buy gold when its probably at a high (or near a high (it might go to 2k, or it might drop to 200))
3. the FACT is that prices have DOUBLED and trippled on goods in the last 5-10 years....much HIGHER than the norm of less than 5% a year (100% in 20 years) (which is still too high)
4. even real estate which has dropped in the last 3 years is still way higher than it should be under normal cercumstances....Ie a lebitown house was 125k in 1995, when skyhigh to 500k by 2006, has dropped to 395k here in 2010... still way too high for a POS levitown ranch, on a postage stamp size property
even though you dont want to admit it, the fed (who WANTS inflation at 5% a year) has been causing prices on products to skyrocket...and since salaries have not been going up..that is STAG-FLATION
face it the middleclass person gets squeezed some more by the liberal globaist policies
Explain to me why commercial and residential real estate prices remain low. I mean if there were hyper inflation wouldn't they be booming as intrinsic value assets? Also why is Gasoline cheaper now then it was 2 years ago?
I recently heard housing prices were at 2003 levels. Housing was overpriced in 2003 too. The market price of my house went up 40k from 2000 to 2002. Prices will continue to go down after the holidays when more foreclosures go on the market.
When government gives out "free money" and manipulates the market, the prices do the opposite of what the free market suggests. Prices go up not down. An ongoing example of this is the cost of a college education.
The cost to build went down in my area, supply and demand were in line, so there was no free market reason for the price to go up as high as it did.
Location: Jonquil City (aka Smyrna) Georgia- by Atlanta
16,259 posts, read 24,763,471 times
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Quote:
Originally Posted by Maabus1999
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.
Hyper inflation is a certain kind of inflation that effects things that are usually sold on a world market such as commodities and oil. While regular inflation effects all prices and wages, hyper inflation usually results from a devaluation of a nation's currency by printing and putting into circulation massive amounts of currency. That currency falls in relation to the currency of other nations and thus the prices of imports go higher while the prices of items built and sold domestically- such as washing machines, cars and real estate might stay the same or even fall.
An example of this I can use is my quarterly bill that I pay to Bell ExpressVu for satellite service (my wife is from Canada). It is a bill that I have to pay in Canadian dollars. When I first paid it 9 years ago, I paid $1 US which got me $1.40 worth of Canadian service. Now it is roughly dollar for dollar and going up. But looking at the Canadian Dollar, it has not increased vs other currencies during that period which tells me that the value of the American dollar has fallen and continues to do so- which is another reason you see creeping food and gasoline prices.
Taken to an extreme, hyper inflation can cause commodity prices to sprial up as they did in 1930s Germany where people literally burned cash to stay warm. It can cause gasoline to cost $10 a gallon.
Hyper inflation is a certain kind of inflation that effects things that are usually sold on a world market such as commodities and oil. While regular inflation effects all prices and wages, hyper inflation usually results from a devaluation of a nation's currency by printing and putting into circulation massive amounts of currency. That currency falls in relation to the currency of other nations and thus the prices of imports go higher while the prices of items built and sold domestically- such as washing machines, cars and real estate might stay the same or even fall.
An example of this I can use is my quarterly bill that I pay to Bell ExpressVu for satellite service (my wife is from Canada). It is a bill that I have to pay in Canadian dollars. When I first paid it 9 years ago, I paid $1 US which got me $1.40 worth of Canadian service. Now it is roughly dollar for dollar and going up. But looking at the Canadian Dollar, it has not increased vs other currencies during that period which tells me that the value of the American dollar has fallen and continues to do so- which is another reason you see creeping food and gasoline prices.
Taken to an extreme, hyper inflation can cause commodity prices to sprial up as they did in 1930s Germany where people literally burned cash to stay warm. It can cause gasoline to cost $10 a gallon.
Incorrect definition on what is and causes hyper-inflation. What you described is normal inflation (which is needed in smaller amounts btw).
As to your definition of over-printing of money (which is not what you think it is), it is a symptom and indirect cause of hyper-inflation. The direct cause is from something else. The example of (1920's) Germany would give you a hint to what the answer is.
Or take a look at what "really" caused it in Zimbabwe.
Oh, when I was a kid, the Canadian Dollar was approximately equal to the U.S. as stores in Montana would accept the equivalent currency. Canada is a resource heavy economy so these swings happen.
1. I never said anything about hyper inflation in my first post...I did mention it in response to you since the defination is....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
2. I never said anything about gold..to me it would be foolish to buy gold when its probably at a high (or near a high (it might go to 2k, or it might drop to 200))
3. the FACT is that prices have DOUBLED and trippled on goods in the last 5-10 years....much HIGHER than the norm of less than 5% a year (100% in 20 years) (which is still too high)
4. even real estate which has dropped in the last 3 years is still way higher than it should be under normal cercumstances....Ie a lebitown house was 125k in 1995, when skyhigh to 500k by 2006, has dropped to 395k here in 2010... still way too high for a POS levitown ranch, on a postage stamp size property
even though you dont want to admit it, the fed (who WANTS inflation at 5% a year) has been causing prices on products to skyrocket...and since salaries have not been going up..that is STAG-FLATION
face it the middleclass person gets squeezed some more by the liberal globaist policies
Liberal globalist policies? Sheesh.
Anyway, hyper inflation means very high price inflation, not an increase in the money supply. A large increase in the money supply can help cause hyperinflation, but it's not the only factor. The fact is, inflation is low in the US, not high.
The market for most commodities is global, and globally, growth in income, wages, and demand has gone up quite a bit in the last ten years. Just because the US has had sub par growth doesn't mean that the Fed is some evil monster out to cause hyper inflation and screw the working man. Supply and demand are the primary drivers of prices. Look at where the growth in demand is, and you'll see why prices on many commodities are higher than they were, even at our slow growth rates in the US. Some prices are also lower. Off the top of my head, Nat gas is about 75% lower than it was a few years ago. Oil is about 40% lower than it was just two years ago.
The guy who said that the Canadian dollar has only increased in value vs the US dollar is plain wrong. The Canadian dollar has done well over the last several years because
A. They've generally had a balanced budget .
B. They have a pretty good trade balance.
C. They've had good economic growth.
It has more to do with Canada's success at those things than anything to do with the Federal Reserve.
I hate to tell you, but there was also inflation when we were on the gold standard.
It was a different type of inflation, not a ponsey scheme and print what you need, deal.
They could not manipulate the illusion, creating a tax on you, you don't realize is there all along. Sneaky isn't it.
Can you not buy the same amount of stuff now, as you did then, with the same amount of gold?
Can you say that about a printed dollar bill?
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