Posted on 03/07/2011 6:41:10 PM PST by blam
Food prices are increasing tremendously, a small can of tomatoes was $2.47. Cereal gets higher every time I go to the store and boxes get smaller. I saw some imported spaghetti sauce in the store for $8.00 per jar (not a large jar)and that was the sale price.
The discount grocery store down the street (a place with off-brand and test-market items, or items labeled for foreign sale--exotic cheap stuff) now has prices approaching those once seen at Safeway and other mainstream grocery stores.
Excellent article.
“How do we pay the debt with stagnation and deflation that won’t generate enough tax/income to pay the debt....it’s got to be paid, right?”
No, it just has to be financed. It’s never been paid and it certainly won’t get paid over the next ten years, or twenty. The question is whether it can all be financed, and for how long.
Watch the bond market for the answer. A default is possible, but quite some ways off. The bondholders don’t want to pull the plug, as they will lose big. And the rest of the world will be an utter disaster, making today look like uptopia.
Attempts will be made to ameliorate the situation with inflation, but I think that comes much later. Inflation will cycle back in around 2023-5. It’s a demographic thing. That’s what I base my forecasting on anyway. I could certainly be all wrong, but the pieces have fallen as expected since the early 90’s. I was about 18 months late predicting the housing collapse (I said 2009), and I blame the extra govt interference for that.
I’ve got to blame somebody to cover my miss there!
May we all be very lucky, as we will need all the luck we can get for quite some time.
How long do I have to wait? I mean, if homes are still falling in price in a year, is “hyperinflation” still just around the corner?
Or salaries? If salaries are still falling in 6 months, is hyperinflation still just around the corner?
...or is it that in the mythical land of Hyper-Inflation, the only thing that matters is if milk or gasoline goes up 17 cents per gallon?
No matter how much monopoly money the treasury “fabricates” most of it will sit in banks. There is no good way of getting it to the masses. Refi of mortgages was a good way, but now that ponzi scheme is dead too. I just wonder why the government even collects income taxes at all? It seems like an outmoded concept now.
I been skeptical of the hyperinflation predictions all along. We are seeing something different here, and the world economy today is not the same as 1979. Money and jobs can move around the world much faster.
Thank You! All the talk of hyperinflation is idiotic and spewed by those who are grossly ignorant of the real monetary system that the US operates under.
THE EXPLODING U.S. MONEY SUPPLY MYTH
http://pragcap.com/the-exploding-u-s-money-supply-myth
I just ate a marvelous Paczki. It rivalled any pie ever baked by the angels.
This statement is true and von Mises is correct.
Deflation is deflation and currency collapse is currency collapse. The two are not the same.
What are you thinking, I just took out a first mortgage? Should I repay the note, or take the cash and move it into WHAT?
Please only give me advice if you are being serious with me!
FReegards, DrMike
Don’t confuse deteriorating currency with deflation. Aggregate demand is down because of high unemployment and excess housing supply. But, our currency is collapsing because of QE 2 and massive deficits. Imagine waking up one day with no job and money in your account that nobody will accept as payment. Deflated housing and wage prices won’t mean diddly because you won’t be able to buy anything.
“The family is no longer the kernel of society.”
###
Economic considerations aside, therein lies our doom.
It ALL flows from that simple, awesomely sad truth.
ok I ll bite. what is a Paczki?
And remember the USSR was not a very knit together empire. It was to young. The US doesn’t have the sense of several nations forced together (not even in the South), so the collapse will be harder to think about for many.
Which in the end is bad news for our food supply either way.
Yes. You can. We have done it. You do not have to be a resident of Canada either but you do have to open the account in person. After the initial account is opened, you can simply mail checks to transfer money. There is reporting to the IRS to prevent money laundering but as long as you have paid the taxes you can hold cash in cdn$ in a Canadian bank, which, BTW, are among the safest in the world; far safer than any US bank.
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