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Old 10-22-2011, 12:58 PM
 
Location: Great State of Texas
86,093 posts, read 72,153,132 times
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In other threads the libs whine that the 1% have all the money these days and they have none.
In this thread they argue they have plenty of money.

Which is it folks ?
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Old 10-22-2011, 01:06 PM
 
Location: SC
9,038 posts, read 14,260,455 times
Reputation: 3488
Mircea, with all due respect, you need a lesson in Austrian economics. I wish I could have Peter Schiff read your post and critique your "insights" on his radio show for entertainment purposes.




Quote:
Originally Posted by Mircea View Post
The central bank has nothing to do with it.



That would be wrong.

As I said 6 months ago, your housing market is in the gutter for the rest of the decade, and about a month ago, dozens of market analysts and economists finally agreed with me.

From: 10-01-2011, 12:04 PM





Fannie Mae Seeks $5.1 Billion More From Taxpayers



Not even close. It will get worse.



Okay, but you can learn from history.



Your Dollars will not become worthless. And you want to replace the central bank with what, exactly? The same Congress that spent all of your Social Security Trust Fund and who buried you in debt?

Oh, that's brilliant. The central bank does exactly what every central bank in the world does, mostly fix your mistakes.



You most certainly can deny it, especially if you live in reality and are not tripping on Orange Barrel.



Fair enough. There is mobility, but it has become very difficult of late. That has nothing to do with anything other than the world is changing (for the better).



Impressive.



No, two incomes are not necessary. It only appears that they are necessary, in order to live your illusory life-style. You live in a disposable society, even though it isn't necessary. Most of your wealth you squander and fritter away on disposable items that are totally unnecessary.

If you're going to spend $5.95 buying Cholorx Brand Orange-scented Kitchen Wipes With Aloe and Anti-Bacterial Agent every week, then you're throwing away money, because you could buy 3 cloths for $0.99 and use them for several years.

That is a mere one example out of more than 100 examples I could give where you literally throw away your money.

And then you have the unmitigated gall to whine and cry that you have no money. You have more than enough money, you just don't know how to use it to your advantage.



I rarely do stocks, but I told someone to buy Chiquita when it was $0.03/share.

It closed yesterday at $8.91/share.

Just think, if you bought $1,000 worth of shares you'd have $297,000 right now.



Uh, no.

An increase would be like 1,400 sq ft to 1,700 sq ft.

We're talking about McMansions that have nearly doubled and tripled in size. 15 years ago my father bought a brand new home and it's 2,400 sq ft. The McMansions in the next subdivision over are 4,100 sq ft. That's really outrageous. What a waste of resources.



1974 I believe was the year that 51% of households had two cars. The "two car family" was a big deal, almost as big a deal as having your own private phone line instead of sharing a party-line.

4-5 cars is "normal" now, but is it necessary? No, absolutely not. I ride the bus through McMansionville and there's a family of 3 with 5 cars. And the kid isn't even 16 yet. His and her SUVs and his and her sports cars and then the "family car."



You're wrong, and without the Federal Reserve, you wouldn't be on the internet. You wouldn't have cell-phones either.



You can't have credit cards or credit and the gold standard.

The reason you have credit cards and you can buy a home with 0%-20% down and buy a car with nothing down and pay for it for 72 months is because you have fractional reserve banking. On the gold standard, your money supply can grow if and only if the value of gold rises or you acquire more gold.

Very little credit, and what credit exists comes with an exorbitantly high interest rate.



That is the precisely the case.



That is correct.

What were once luxuries are now "necessary vices" so cry the Jones'.



Not really. People weren't buying homes and then being foreclosed 6 months later. People were buying homes, and then after 5-10 years they were using the equity to get "credit card debt consolidation" loans, ie a 2nd Mortgage and some even a 3rd Mortgage.

A default on the 3rd Mortgage is the same as defaulting on the 1st Mortgage.



Not necessarily. Even when the Prime Rate was 13% back in the late 1970s and early 1980s, banks were still offering mortgages in the 4% to 6% range.



That is absolutely right.
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Old 10-22-2011, 01:10 PM
 
Location: SC
9,038 posts, read 14,260,455 times
Reputation: 3488
Quote:
Originally Posted by slackjaw View Post
You are hedging on a annual rate of inflation for paper towels to be about 50%, which I'd guess is unprecedented and unlikely to occur anytime in the near future.

Those paper towels will come in handy though when you are forced to work cleaning houses at age 85 because you spent your money filling your garage with them instead of engaging in a more prudent retirement plan.


That flight to Europe "back in the good ole days" cost far more than it does today, and meals on flights to Europe are still included with the price of your ticket.
You obviously don't do much grocery shopping. I've seen 30% increases on some groceries just in the last six months!

If the SHTF and our currency isn't accepted anywhere, a billion dollar stock portfolio denominated in dollars isn't going to do you a whole lot of good.
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Old 10-22-2011, 01:12 PM
 
Location: Great State of Texas
86,093 posts, read 72,153,132 times
Reputation: 27563
Quote:
Originally Posted by emilybh View Post
You obviously don't do much grocery shopping. I've seen 30% increases on some groceries just in the last six months!
Peanut butter is about to skyrocket maybe by up to 40% due to the bad harvest this year.

Peanuts have tripled in price over the past year and now selling at over $1000/ton.

http://gawker.com/5848222/peanut-but...ensive-for-you
Wholesale prices for big-selling Jif are going up 30% starting in November, while Peter Pan will raise prices as much as 24% in a couple weeks...Skippy [prices] are 30% to 35% higher than a year ago. Kraft Foods Inc., which launched Planters peanut butter in June, is raising prices 40% on Oct. 31
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Old 10-22-2011, 01:16 PM
 
27,903 posts, read 34,291,328 times
Reputation: 4031
Quote:
Originally Posted by emilybh View Post
We've seen real inflation. We haven't seen hyperinflation like what happened in Argentina if that is what you mean by "real". I hope we never do.
Real inflation is the rising cost of everything.

Credit inflation is the rise of the cost of everything related to credit.

Wage inflation is the rise in cost to wages.

Price inflation is the rise in cost to something in particular because of a scarcity like low productions rates in grain.

There's all sorts of different things that influence the different inflation.

You can even see rent inflation (if on a national level) from a lack of supply in rental properties.

The main point though is that you aren't seeing the rise in cost to everything which is real inflation. It may seem like it if something like fuel prices increase because fuel affects so many things in our economy. However, in the monetary system we have everything would be affected by real inflation because the dollar is the de facto currency that everything is traded in.

That's just not the case. Some things have actually decreased in price but you also have to keep in mind you general would like a small, set, inflation because then you know your economy is growing and people have more money in their hands. Otherwise you'd have deflation during economic downturns and you'd see the economy come to a screeching halt.
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Old 10-22-2011, 01:18 PM
 
Location: SC
9,038 posts, read 14,260,455 times
Reputation: 3488
Quote:
Originally Posted by HappyTexan View Post
Peanut butter is about to skyrocket maybe by up to 40% due to the bad harvest this year.

Peanuts have tripled in price over the past year and now selling at over $1000/ton.

Peanut Butter Now Too Expensive for You
Wholesale prices for big-selling Jif are going up 30% starting in November, while Peter Pan will raise prices as much as 24% in a couple weeks...Skippy [prices] are 30% to 35% higher than a year ago. Kraft Foods Inc., which launched Planters peanut butter in June, is raising prices 40% on Oct. 31

Really? I don't doubt it.

Jim Rogers said a while back to buy sugar. He said he thought that would skyrocket.
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Old 10-22-2011, 01:19 PM
 
Location: Great State of Texas
86,093 posts, read 72,153,132 times
Reputation: 27563
We have all three going on today...inflation, deflation and stagflation.
Just depends what you are looking at.

RE is deflation
Wages are stagflation
Food is inflation

And the key is to continue to survive in spite of it going on.
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Old 10-22-2011, 01:21 PM
 
Location: Great State of Texas
86,093 posts, read 72,153,132 times
Reputation: 27563
Quote:
Originally Posted by emilybh View Post
Really? I don't doubt it.

Jim Rogers said a while back to buy sugar. He said he thought that would skyrocket.
By next spring livestock will be through the roof.
The drought has caused major selloff of herds.
Right now the supply is bigger than the demand.
By next spring the demand will be bigger than the supply.
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Old 10-22-2011, 01:21 PM
 
27,903 posts, read 34,291,328 times
Reputation: 4031
Quote:
Originally Posted by emilybh View Post
You obviously don't do much grocery shopping. I've seen 30% increases on some groceries just in the last six months!
Exactly. You should see the price of ribeyes! (grain fed no doubt)

But the point is, you haven't seen a rise in the cost of all groceries, equally.
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Old 10-22-2011, 01:21 PM
 
Location: SC
9,038 posts, read 14,260,455 times
Reputation: 3488
Quote:
Originally Posted by BigJon3475 View Post
Real inflation is the rising cost of everything.

Credit inflation is the rise of the cost of everything related to credit.

Wage inflation is the rise in cost to wages.

Price inflation is the rise in cost to something in particular because of a scarcity like low productions rates in grain.

There's all sorts of different things that influence the different inflation.

You can even see rent inflation (if on a national level) from a lack of supply in rental properties.

The main point though is that you aren't seeing the rise in cost to everything which is real inflation. It may seem like it if something like fuel prices increase because fuel affects so many things in our economy. However, in the monetary system we have everything would be affected by real inflation because the dollar is the de facto currency that everything is traded in.

That's just not the case. Some things have actually decreased in price but you also have to keep in mind you general would like a small, set, inflation because then you know your economy is growing and people have more money in their hands. Otherwise you'd have deflation during economic downturns and you'd see the economy come to a screeching halt.
Thanks for the clarification. No I guess I'm talking about inflation of all the necessities such as food, gas, utilities, medicines/supplements and possibly clothes.
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