Why i'm not too concerned about INFLATION...
2011 Jan 24, 4:31am 2,052 views 7 comments
by LAO follow (0)
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Done!
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2011 Jan 24, 5:18am
Effectively it’s created twice, destroyed once … the net effect is +1 dollar.
That might be, but we are only experiencing Engineered Inflation.
It took three years of halting Oil production, destroying Oil wells, and unregulated Oil speculation to get Oil back to where it is now. In fact Oil is struggling to get where "THEY" keep touting for two years where it "Will be" and it's still short of that.
Washington just last year had to extend the Corn subsides and put even more corn to get food prices where they are now. Also coupled with wild commodity future manipulation. There's a plenty on the supply side, there's just more investors that want their cut of the action. None of this smells of classic inflation to me.
And I go even further to agree one hundred percent, about the dollar being destroyed with credit defaults.
FortWayne
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2011 Jan 24, 6:52am
Inflation is when all your average Joes get more money. This isn't happening. Market for salary isn't very competitive. Most people are competing their skills vs someone in China/India... so salaries aren't going to be going up. So I'm not concerned about it that much.
We are going to have bubbles though in the system because of the low interest rate the Fed is holding. But no inflation. Really I just cannot justify envisioning inflation in our current envornment.
Now if they start doing helicopter drops of money than yeah it will be inflationary.
joshuatrio
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2011 Jan 24, 7:00am
Just hedge your money in something like potatoes, guns, and ammo. I’ve been subscribing to the APOCALYPSEFUCK newsletter, and there is some interesting reading in there.
ROFL !!
zzyzzx
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2011 Jan 26, 3:05am
Inflation is when all your average Joes get more money. This isn’t happening. Market for salary isn’t very competitive. Most people are competing their skills vs someone in China/India… so salaries aren’t going to be going up. So I’m not concerned about it that much.
We are going to have bubbles though in the system because of the low interest rate the Fed is holding. But no inflation. Really I just cannot justify envisioning inflation in our current envornment.
I can see price inflation in commodities and imports without wage inflation in the US.
LAO
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2011 Jan 26, 7:15am
I can see price inflation in commodities and imports without wage inflation in the US.
Yeah, it still wouldn't inflate home prices though... hence my fear of inflation in home prices isn't very high... YET.. Although the higher gas prices go... The more expensive metro areas near places of work could rise. I currently rent within walking distance to my work and rising gas prices don't affect me much.. But they would affect someone living 15-20+ miles away.
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Every refinance... every write down a bank does... every personal bankruptcy... every loan not repaid and written off is money destroyed. So, any money being pumped back into the economy is just filling the giant gaping hole from the crashing home values and consumer credit crisis.
There are ONE MILLION more foreclosures due in 2011... MINIMUM! That's a lot of dollars being destroyed... Sure most of this wealth destruction is occurring in the middle/lower class... But it's still dollar destruction... If I burn a dollar bill one day and print a dollar bill the next day.... can inflation occur?
#housing