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It's cool. I haven't had a good laugh at other peoples' expense since the housing bubble started to implode in 2008, and I'm due for one in about a year or two. See...even Obama was laughing at them!
You know what. I think you are wrong, but if what you predict comes true I will be dancing in the streets. Nothing like some good old inflation to turn a low interest student loan into an asset.
I have read numerous articles by some that are in the inflation camp and just as many from the deflation camp.Both camps have well thought out arguments to back their viewpoint and they sound logical.Here is another opinion that I have not heard to much about it is from the stagflation camp.
Quote:
Buying longer-term debt is reminiscent of Japan, where banks increased their holdings of
government bonds to record levels during the country’s so-called lost decade of economic stagnation that began in the 1990s, according to Michael Cheah, who manages $2 billion in bonds at SunAmerica Asset Management in Jersey City, New Jersey.
Like Japan’s response to the real estate collapse in the 1990s, the U.S. flooded the economy with cash only to see financial institutions sock the money away in bonds instead of making loans. Yields on 10-year Japanese bonds ended last week at 1.27 percent.
“It’s the Japanese movie, just an American version,” said Cheah, who worked for Singapore’s central bank. “The next scene is that after banks buy more and more government bonds it will be very difficult for the Fed to raise interest rates because they will lead to massive losses in the banks and cause them trouble all over again.”
You know what. I think you are wrong, but if what you predict comes true I will be dancing in the streets. Nothing like some good old inflation to turn a low interest student loan into an asset.
Nothing wrong with your student loan being worth nothing. The only problem is your wages being worth nothing too. But don't worry. It won't be the end of the world. It'll just feel that way for most people.
Nothing wrong with your student loan being worth nothing. The only problem is your wages being worth nothing too. But don't worry. It won't be the end of the world. It'll just feel that way for most people.
Na wages will be fine in a period of inflation simply because people will not work if the wages they receive are worthless...you may have high unemployment though. The main people who feel it during periods of inflation are those looking to borrow money and those with savings and dollar denominated debt.
Though this is assuming there will be inflation and that does not appear to be the case. There were signs of the housing bubble in 2006 as I remember writing about them in 300 level Econ., but I cannot honestly see the signs of inflation currently.
Na wages will be fine in a period of inflation simply because people will not work if the wages they receive are worthless...you may have high unemployment though. The main people who feel it during periods of inflation are those looking to borrow money and those with savings and dollar denominated debt.
If you don't work, you don't eat. During hyperinflation, social programs usually go out the window to try combating the inflation. Usually what also happens is some sort of price controls, but the only people who will avoid the long lines and shortages are those who grow their own food or have people "in the know". Segregation will re-emerge, as whites will only sell to whites on the DL. The only people who will lose big are minorities who will be murdered trying to steal food.
In terms of depth, year-to-year decline in the gross domestic product, or GDP, as reported in the third quarter of 2009, was the steepest annual decline ever reported in that series, which goes back to the late '40s on a quarterly basis. Other than for the shutdown of war production at the end of World War II, which usually is not counted as a normal business cycle, the full annual decline in 2009 GDP was the deepest since the Great Depression. There's strong evidence that we're going to see an intensified downturn ahead, but it won't become a great depression until a hyper-inflation kicks in. That is because hyper-inflation will be very disruptive to the normal flow of commerce and will take you to really low levels of activity that we haven't seen probably in the history of the Republic.
Oh for Pete's sake people, the "experts" spewing this garbage are just a bunch of pump-monkey's trying to sell you over-priced gold crap. If y'all fall for this then you'll love the bridge in Brooklyn that my contacts can hook you up with.
They should rename "The Gold Report" to what it really is, "The Fleece Report."
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Everyone thought the Titanic was unsinkable, too. Sounds like most of you would refuse to believe it was sinking even as the cold seawater flowed up your asses. Take another toke; all is well.
Interesting article. I disagree about the gold, though. I haven't tried eating it, but I'm thinking gold has very little nutritional value.
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But don't worry. It won't be the end of the world. It'll just feel that way for most people.
