patrick.net

Inflate "us" out of this mess... and into a much, much bigger one.

As a diligent saver who has many dollars in the bank, I resent any attempts on the part of the government to steal that value from me. Give me the minus-0.5%-CPI deflationary "mess" any time.

Los Angeles Renter says

turning on the "printing presses" so to speak?

That's a bullying tactic by our own government,keep spending but hey give some raise to back it up. No thank you I am holding on to my $$ while home values keep plummeting as they should.

Michinaga says

As a diligent saver who has many dollars in the bank, I resent any attempts on the part of the government to steal that value from me. Give me the minus-0.5%-CPI deflationary "mess" any time.

My grandfather told me that he had $3000 for a large downpayment to purchase a home back in the 70's. He thought prices were too high and saved diligently. He did not purchase a property, and the $3000 is still in the bank he says.

Michinaga says

Inflate "us" out of this mess... and into a much, much bigger one.

As a diligent saver who has many dollars in the bank, I resent any attempts on the part of the government to steal that value from me. Give me the minus-0.5%-CPI deflationary "mess" any time.

Sure. As long as you have a job, deflation is fine. The problem is when the deflation hits your employer...

Los Angeles Renter says

Can the govt reverse course in 2012 and inflate us out of the mess by turning on the "printing presses" so to speak?

Only if they can achieve wage inflation somehow. QE has ensured that the banks are capitalized and they either deposit these reserves back at the Fed for 0.25% interest (ha!) or invest in stocks/bonds/commodity futures etc.

The Bernank and company exactly want this kind of inflation so that they can reduce the debt burden (Uncle Sam can pay back creditors with devalued dollars). How long can that charade go on is the question. What if there is runaway inflation and if and when that comes to play, is raising interest rates to curb inflation really an option?

vain says

and the $3000 is still in the bank he says.

Haha. Fear mongering. Who wants to keep $3000 in the bank forever? I am trying time the bottom and which is still a long way.

vain says

My grandfather told me that he had $3000 for a large downpayment to purchase a home back in the 70's. He thought prices were too high and saved diligently. He did not purchase a property, and the $3000 is still in the bank he says.

Along with tons of interest or investment return as well as other savings?

Also, where was he looking to buy? 3000 sounds like a very low downpayment in the 1970s -- not sure if these figures are accurate, but according to this source, the average (not median) sale price for a used home in 1972 was $30K, it was $39K by 1975, $55,500 by 1978, and $64,200 by 1979:

http://dailyreckoning.com/buy-a-house-then-buy-another/

bubblesitter says

Los Angeles Renter says

turning on the "printing presses" so to speak?
That's a bullying tactic by our own government,keep spending

i refuse to be bullied into spending my cold hard cash! i'm adopting bubble sitter's strategy.