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Holy Cow ! I had MSNBC on today and the question was asked by Andrea Mitchell, to one of the big wigs: Where is all this money coming from? And the answer was, "why, of course, we are just printing it." !!!!!!
Is that all it takes? Well, then, why worry? Let them just print some more for all of us !!
Holy Cow ! I had MSNBC on today and the question was asked by Andrea Mitchell, to one of the big wigs: Where is all this money coming from? And the answer was, "why, of course, we are just printing it." !!!!!!
Is that all it takes? Well, then, why worry? Let them just print some more for all of us !!
The problem is that it dilutes the value of money already in circulation. Expect really high inflation in the coming years .
Location: We_tside PNW (Columbia Gorge) / CO / SA TX / Thailand
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Quote:
Originally Posted by humboldtrat
The problem is that it dilutes the value of money already in circulation. Expect really high inflation in the coming years .
yes, this is highly likely, but the question for those of us in the trenches is "when" and how to best prepare / position our investments to not be eroded...
The brainy manipulators who are adding the infusion of cash are hoping they can tweak the economy during potential growth via interest rates to pull some of this $1.5t off the table, before inflation knocks us flat. I don't hold strong confidence in that, especially with Volcker in a power position. I hope he REMEMBERS 1980 He did a number on us then. I got to make house payments on two places for a few yrs when I got transferred and could not sell the 1st one. The loan rates on homes were in excess of 12%, cars were 18%-21%.
I'm tempted to get fully invested in income properties that can weather tough times (with as long term as possible current low interest rates). NO 'strip malls' or spendy apartments as spending may be TIGHT for a long time. This will take very keen timing, as buying real estate is gonna be tempting to a lot of people who no longer trust the equity markets, but we are probably not at the bottom of the RE market, and maybe not even close. There is a nice infusion of capital through refinance at the moment, but with people losing their jobs and everyone hunkering down, it is possible that tough times are ahead for real estate markets. Probably attractive times for rental markets.
yes, this is highly likely, but the question for those of us in the trenches is "when" and how to best prepare / position our investments to not be eroded...
The brainy manipulators who are adding the infusion of cash are hoping they can tweak the economy during potential growth via interest rates to pull some of this $1.5t off the table, before inflation knocks us flat. I don't hold strong confidence in that, especially with Volcker in a power position. I hope he REMEMBERS 1980 He did a number on us then. I got to make house payments on two places for a few yrs when I got transferred and could not sell the 1st one. The loan rates on homes were in excess of 12%, cars were 18%-21%.
I'm tempted to get fully invested in income properties that can weather tough times (with as long term as possible current low interest rates). NO 'strip malls' or spendy apartments as spending may be TIGHT for a long time. This will take very keen timing, as buying real estate is gonna be tempting to a lot of people who no longer trust the equity markets, but we are probably not at the bottom of the RE market, and maybe not even close. There is a nice infusion of capital through refinance at the moment, but with people losing their jobs and everyone hunkering down, it is possible that tough times are ahead for real estate markets. Probably attractive times for rental markets.
Great comment I agree, it's a solid investment though I'm not sure if I want to keep real estate for the next decade. I would probably diversify a portfolio for 4-5 years instead on 60% energy, food and silver stocks, 35% mutual funds and 5% foreign bonds.
When money is created it only dilutes the dollar if all things are equal. But money is being destroyed faster than it is being created. So long as the FED is mindful and only replaces what is being lost there will be no problem with inflation.
Also, the FED seems to have a preference for strategies that can fairly easily reversed.
People that were gambling on high inflation are now getting killed.... Of course some are sticking to this view point and pushing the date in which this mystery inflation will occur in the future.
While televisions sets and shoes have gotten cheaper, not everything has. Home prices nearly tripled between the 1970s and 1990s; wages didn't. It's the same way with family cars. College tuition has skyrocketed. Medical expenses have soared. In 1975 a gallon of gas costs around 36 cents. So, wages are not keeping up, they are not even close
Two things have increased since say, the 1960s. First, inflation. Second, our GDP. As a result, we can buy less stuff with the dollars we make, but we expect to have more and nicer things, because we see a lot more wealth around us (our GDP growth has been prodigious). This wouldn't be a problem if our wages were keeping up with inflation and GDP growth. However, they aren't. For example, just for minimum wage to have kept up, it would have to be around sixteen dollars an hour.
Apparently, between inflation of our currency and offshoring of our jobs, we (average Americans) have been losing ground.
Location: Prescott Valley,az summer/east valley Az winter
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Actually the money is NOT just being printed~ that happened in Germany just before WWII~ if ya needed some money just pick it up off the streets~
the money our government is spending is being borrowed~ at high interest rates~ from Saudi Arabia, China, Japan. And the bill will be paid by our children and grandchildren~ whom our politicians seem to think belong in slavery! Tis much better to have a tax and spend administration than borrow and spend!! Our children deserve better!
While televisions sets and shoes have gotten cheaper, not everything has. Home prices nearly tripled between the 1970s and 1990s; wages didn't. It's the same way with family cars. College tuition has skyrocketed. Medical expenses have soared. In 1975 a gallon of gas costs around 36 cents. So, wages are not keeping up, they are not even close
healthcare has skyrocketed also. today's problem is the work force. there is a steady supply of mexicans that are taking the low paying jobs for less. this in turn is crippling everyone else. employers have no reason to increase wages. they just higher a cheaper employee. family's have gone from 1 household wage earner to 2 to keep up with the jones's.
the money is being borrowed and printed. they are predicting a massive deflation and then a massive inflation after, lol. i honestly don't know enough to comment on either, but i am tired of the bailouts. they need to just take it all back and let them all fail.
too much government intervention. no more requiring banks to give out bad loans, etc. all the lame duck laws need to go. too many oversight committee's and regulatory agency's convoluting the situation.
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Holy Cow ! I had MSNBC on today and the question was asked by Andrea Mitchell, to one of the big wigs: Where is all this money coming from? And the answer was, "why, of course, we are just printing it." !!!!!! 
.
He did a number on us then. I got to make house payments on two places for a few yrs when I got transferred and could not sell the 1st one. The loan rates on homes were in excess of 12%, cars were 18%-21%.
We've been clobbered by inflation already
