If the massive debt we are building does not 'fix' the economy - what are we facing - massive deflation or inflation? (Reagan, drugs)

[KRAMERCAT]

And what do you think is the best hedge?

[Huckleberry3911948]

Originally Posted by KRAMERCAT

And what do you think is the best hedge?

very good post you got rep asap.
debt does not fix debt
ronald reagan was wrong a self appointed economist, debt is not meaningless. "leveraging" is not jacking up the credit cards.

[KRAMERCAT]

Originally Posted by Huckleberry3911948

very good post you got rep asap.
debt does not fix debt
ronald reagan was wrong a self appointed economist, debt is not meaningless. "leveraging" is not jacking up the credit cards.

Wow, that was fast. While I think that deflation will rule for the next year or so, I did just a no-cost refi just in case - who knows?

[AeroGuyDC]

You forgot Stagflation. Central banks can cause inflation by permitting excessive growth of the money supply, and the government can cause stagnation by excessive regulation of goods markets and labor markets. The result is stagflation.

I think we run a big risk of this based on the pure definition (but i'm no economist).

[Huckleberry3911948]

1st inflation then when we collape massive deflation.
do not buy a house for 1 year dont do it. get liquid now.
smart people have pulled their money out of the dow.

[KRAMERCAT]

Why isn't anyone voting?

[malamute]

I'm not voting because I think we're in for both. There will be some things that deflate, but inflation will hit us very hard in others.

We're going into new territory for sure, a time where the government will pay for many people to lay around, and will take over many corporations and productivity will crash. We are quickly becoming an extremely non-productive nation where everyone expects to live very high on the hog and have the government take care of everything for them.

[Gottasay]

Either way, something's going to happen and it ain't going to be pretty. We can't keep the charade going on forever. We need to make serious adjustments to our economy in order to compete on a global scale. The other day, BHO said we can't compete on the factory labor level b/c China and India have us beat on labor costs and we need to specialize to distinguish ourselves from our competitors -- well, good luck with that one -- the minute we invent something, the idea is stolen and produced cheaply elsewhere. Its gotten so bad, that even our white collar jobs are being sent overseas. The only thing that's left are jobs that are subsidized by the Federal gov't or can only be done here, like retail/restaurant jobs.

[AONE]

Im affraid I would always take property investmetns over gold. it rarely makes anyone any money vs RE making it in up and down markets.

[HappyTexan]

I voted..this poll quickly moved down the page though.

While I think there will be massive deflation only because all this bailout money is not making it past the banks I do see price inflation in the commodities and some finished products. Food is going up consistently; I see packaging shrinking at the same time as price rise. Medical care and drugs are going up too.

For my hedge I voted on RE but not as an investment; I'd rather have a paid off home with land, some livestock and a pile of seeds for peace of mind than 800 gold coins sitting in the closet.

In that case I think (and hope) I could survive either deflation or hyperinflation; I'd only need to worry about paying property taxes to keep hold of the homestead.