Inflation like you have never seen before!

[wimpy77]

You'd remember the early 1970s Neubarth - stagflation - that was a tough time.

I remember it well there podner. But it was an animal of a different color. Some goofball in charge of the Fed had decided that higher interest rates promoted nearly full employment, so he kept intererst rates high and collapsed the economy. It took a couple of years to undo the wrong that goofball artificially created. What the hell was his name, anyway?

volker wasn't it, who later served in regan's cabinet.

 

[wimpy77]

its gonna take years i think before real estate becomes an option of investment. most economist say that inflation with these series of moves will probably come to around 8 or 9% , but maybe even 10. question is how long will it last. and more than likely interest rates will go up as well.

but my question is when inflation goes up wont that undo the upturn?

 

[Neubarth]

An upturn can accomodate some inflation. Moderate inflation appears to be good for the economy of the Western Industrial countries. Just remember too much of a good thing can be bad for you, as Paul Volker demonstrated in the mid 1970's

 

[Zoomie1980]

A yes, the dilemma of the working class.

When they're making money, inflation rears its head and their inability to keep up with inflation means they're getting poorer even while they're working harder.

But when enough of them are out of work, there's no inflation, but they also don't have any money so they have to sell their stuff to keep eating.

Nice racket the rich have isn't it?

Well since that has absolutely no basis in reality, this is yet another post of yours readers can just dump on the floor.

Real wages (wages after inflation) have increased in all but short and rare times for the past 30 years.

Wages for skills that have become largely obsolete, though, have crashed....which is ALWAYS a GOOD thing....

 

[Charles_Main]

If the Government keeps borrowing a trillion a year, Credit is not coming back any time soon

 

[editec]

god neb your mood changes often doesn't it. yes we will see inflation once the downturn ends. the question is how much, some economists say double digits.

Not so much my mood as my comments. I offer up topics for conversation. I do it to promote conversation on this board.

What I actually do with respect to the market, I am fully open about, as you can see in this post.

When I started telling people to get out of the market the market continued up for about five percent before it turned south. While it was still going up people laughed at me. Those same people rode their money all the way down when the market fell of the cliff half a year ago. My timing may not be exactly right, but my understanding of what should happen (cause and effect) is very real, as it should be for most common men.

We should see a spurt in the market. If I say it will happen this coming week, I will probably be wrong. If I say it will happen in the next few months, I know I am going to be right. You are free to pick the time. Just don't be left standing on the sidelines.

Better to be right too soon than right too late, eh?

I had the amazing good luck to go broke BEFORE the market crashed.

Hopefully I can manage to go into enormous fixed rate debt again before the next bout of inflation hits.

Because as you no doubt understand there are really two ways to cope with inflation...

If you have money you have to get it into something that rises in value as the value of the dollar falls.

Or if you don't have money, then the best avenue is to borrow money at a fixed rate, invest it into something with intrinsic value, and let inflation reduce the amount of your debts the old fashioned way...by DEFLATING the value of the dollars you pay that debt back with.

Peasants' Logic 101

 

[editec]

A yes, the dilemma of the working class.

When they're making money, inflation rears its head and their inability to keep up with inflation means they're getting poorer even while they're working harder.

But when enough of them are out of work, there's no inflation, but they also don't have any money so they have to sell their stuff to keep eating.

Nice racket the rich have isn't it?

Well since that has absolutely no basis in reality, this is yet another post of yours readers can just dump on the floor.

I understand that the pearls cast before swine are thought worthless by those pigs, too. Value is a relative thing, isn't it?

Real wages (wages after inflation) have increased in all but short and rare times for the past 30 years.

Yes, we can certainly tell how that must be true by looking at the number of forclosures and bankruptsies that are being filed every year.

The working classes obviously must be doing swinmmingly.

Wages for skills that have become largely obsolete, though, have crashed....which is ALWAYS a GOOD thing....

Totally, dude.

Just look how well it's working out for ALL of us right now.

If but only those parasite workers would just kill themselves, THEN everything would be perfect, eh?

 

[Charles_Main]

The Inflation will come about a year from now when most of this stimulus cash starts hitting the street when the economy no longer needs it.

This is why we have been saying this Bill is a mistake.

Add more debt, and only manage to cause short term Jobs, and an inflationary bubble later.

This bill was the wrong idea, at the wrong time, and time will prove me right on this, however I doubt the Dems will ever own up to it. They will just try and tell us it was a bipartisan effort lol. You know those 3 Republicans that voted for it and all. Ignore those 7 Democrats that voted against it.

 

[wimpy77]

The Inflation will come about a year from now when most of this stimulus cash starts hitting the street when the economy no longer needs it.

This is why we have been saying this Bill is a mistake.

Add more debt, and only manage to cause short term Jobs, and an inflationary bubble later.

This bill was the wrong idea, at the wrong time, and time will prove me right on this, however I doubt the Dems will ever own up to it. They will just try and tell us it was a bipartisan effort lol. You know those 3 Republicans that voted for it and all. Ignore those 7 Democrats that voted against it.

i was gonna pst something, but at this point what's the use in trying to have a conversation with someone who sees things in nothing but their own partisan views. its virtually pointless.

 

[Neubarth]

Does this mean that everybody agrees that the Stimulus Bill was not needed?

 

[wimpy77]

Does this mean that everybody agrees that the Stimulus Bill was not needed?

i didn't imply that nor did i say that. i believe something was needed im just not sure the bill that was passed is it. only time will tell in the long run.

 

[Neubarth]

I note that there is an increasing number of Republicans who are claiming that the economy is turning around on its own already and that we did not need this stimulus bill.

Rather brave of them to take such a stand. If the economy is turning around like they say, you could see a lot of Republican Congressmen elected to office in a year and a half if they play their cards right.

 

[wimpy77]

I note that there is an increasing number of Republicans who are claiming that the economy is turning around on its own already and that we did not need this stimulus bill.

Rather brave of them to take such a stand. If the economy is turning around like they say, you could see a lot of Republican Congressmen elected to office in a year and a half if they play their cards right.

what's going to happen if the economy turns around quicker than predicted both sides will play up their part of the bill. republicans will play up the tax cuts and the dems will play up the spending. but, from what ive heard the predictions from alot of economist about the recovery say it will be pushed back a few months. they dont see gdp growth until 4th quarter at least. they were predicted around end of 3rd.