****************
Posted on 03/04/2009 1:25:30 PM PST by 2ndDivisionVet
>> ammo.
You can’t eat ammo. It’s filling, but poisonous.
However you can use ammo to shoot stuff that you can eat. Like PETA activists.
It may make the Wiemar Republic look like the go-go 90's!!
It would be awesome if just 50% of all of Dick Morris’s predictions came true.
Yes
We need an inflation/deflation ping list for all the inflation and deflation predictions
marking...
It sure keeps me awake nights.
Cash is a doomed investment. That much is easy enough to understand.
but...
What to do with it?
When?
Will the onset of inflation be sudden, or will there be a ramp?
Will there be a separate, delayed bottom in other asset classes, like real estate?
Will the signs be clear? Will I miss them?
Will I jump prematurely at a *false* sign?
&etc
As much as I disagree with the ballooning Obama budget and the stimulus package I just don’t see inflation coming back any time soon.
The reason I say this is the experience of Japan. They pumped much larger amounts of money into the economy than even Obama is (their national debt is around 150% of GDP, ours will be around 65%) and their inflation has been even lower than ours for years. In fact they’ve had deflation.
Yes a lot of money is being injected into the economy, but you have to balance that with the amount of wealth that is being destroyed. The destruction of wealth is at least an order of magnitude bigger than the money being pumped in. So deflation is much more likely than inflation.
I don’t so much object to the money injection, but the how and where. I wouldn’t mind if it did go for infrastructure and tax cuts (empowering productive people) - instead most of it is going to entitlements and new government programs that are going to empower the government and make us less free, productive and affluent.
Obama is Carter II plus Mugabe/Chavez and the Islamification of America like what happened to
England(istan).
****************
The Obama presidency = Jimmy Carter II
I remeber those times well even though I was only 14 years old. My father owned a business and was paying 19.5% interest on his operating notes.
maybe the could get the ink from the shrinking print media which by now has a huge surplus
271????
oh boy. so a dollar could actually lose half or more of its value.
“boiled frog”
For a variety of reasons (disastrous rise in price of oil, crash in home prices, even more productivity improvement in all sectors of our economy, and so forth) we suffered a severe reduction in the money supply. The loss is in excess of $6 trillion.
At some point deflation plus more cash should create a new equilibrium. Inflation can occur afterwards simply through creation of more wealth to be pledged as credit.
But if (when?) hyperinflation hits, gold prices will skyrocket too. But I take your point.
I've heard the Fed claim they can just mop up all that extra money when the time comes, and thus prevent hyperinflation. This sounds a little (ok, a lot) too simple for me. Can anyone comment on how plausible it is that the Fed can change course and restrict the money supply when the time comes, without more economic havoc?
Remedial Math 101 for you!
Silver was higher this time last year, but it might go up in Hyperinflation.
I'd be careful buying silver.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.