How long till really bad inflation hits?

[Ratters]

I know this is from the right wing Huff Post, but:

http://www.huffingtonpost.com/robin-koerner/an-inflation-inflection_b_1771129.html

I do like how he points out something that many people don't realize, your federal taxes actually don't pay for anything, the money collected in taxes basically "disappears" while the govt. creates new money to replace it. There is no "lockbox" of savings for anything. It's a subtle but I think important difference.

As for the rest, I've been having this debate with a buddy of mine who says inflation is not coming, I'm stunned that he can't see it already just in the grocery store, but things are going to get bad "relatively" soon. Then they will be forced to raise interest rates to quell the inflation and we are going right back into the Carter "stagflation" years, but on steriods.

 

[Shotline]

Increasing interest rates will spur savings. These artificially low interest rates are one of the key reasons people don't save money.

 

[sv2007]

Inflation is normal following a currency devaluation. But the US case is different; right now the US can devalue its currency without seeing much inflation because China is absorbing the loss the dollar:RMB exchange rate hasn't gone down yet.

How long will this keep up? I think that depends on how soon Europe can recover and start buying more Chinese goods.

 

[Blankpage]

The jig is up

 

[sv2007]

The jig is up

why?

 

[Traq]

So OP is trying to tell me I should have bought a piece of property I couldn't afford instead of staying put and refinancing?

Fuck.

 

[Panamahaha]

Your friend is a 'tard. The world ecomony is NOT going to improve for atleast 10-15 years. The USA is fucked as is Europe, Asia. CHINA has a HUGE financial hammer about to come down on them, mark my words.

 

[tuxumino]

don't worry about inflation, worry about deflation.

 

[Var]

^^not gonna happen

 

[Beauregard]

The funny thing about economists is that they're just like weathermen.

The get paid just as much if they're wrong.

 

[Panamahaha]

I worry when my favorite half-gallon of rum inches up from $10 to $11.

I worry when I've been at so many strip-clubs here and the local policia remembers me renting their younger sisters for a night of bliss.

Turd world problemos.

 

[SteelerFanatic]

Increasing interest rates will spur savings. These artificially low interest rates are one of the key reasons people don't save money.

This. .01% isn't going to have anyone running to the banks to save money.

It used to be common to see 3% int paid out on savings interests. Do you guys remember when ING Direct first came to market? I was getting up to 7.5% interest paid out.

Now they are right under 1%. Which is just laughable. Getting out of Debt should be everyone's #1 priority. All forms of debt. If you can pay your mortgage off 6 months earlier you will realize more gains than saving that same $$ amount.

 

[redruM]

inflation, deflation, stagflation - these academic terms are all basically obsolete in this mega-manipulated kafkaesque world we live in right now.

our brilliant leaders are now monetizing our own debt. beware 'debtflation'.

 

[R1-Limited]

I know this is from the right wing Huff Post, but:

:rofl
Huffington Post Right wing :rofl

Arianna Huffington (formerly Stassinopoulos; born Greek: Αριάννα Στασινοπούλου, July 15, 1950) is an American author and syndicated columnist. She is best known for her liberal news website The Huffington Post.

 

[jt2]

Sarchasm: sar·chasm ('sär-"ka-z&m) : The giant gulf (chasm) between what is said and the person who doesn't get it.

 

[Beauregard]

Sarchasm: sar·chasm ('sär-"ka-z&m) : The giant gulf (chasm) between what is said and the person who doesn't get it.

Post of the Day.®

 

[ALANRIDER7]

Emperor Obama has things completely under control.

:laughing:laughing:laughing

 

[radvas]

Sarchasm: sar·chasm ('sär-"ka-z&m) : The giant gulf (chasm) between what is said and the person who doesn't get it.

:rofl

 

[Ratters]

This. .01% isn't going to have anyone running to the banks to save money.

It used to be common to see 3% int paid out on savings interests. Do you guys remember when ING Direct first came to market? I was getting up to 7.5% interest paid out.

Now they are right under 1%. Which is just laughable. Getting out of Debt should be everyone's #1 priority. All forms of debt. If you can pay your mortgage off 6 months earlier you will realize more gains than saving that same $$ amount.

When I was a kid mortgage rates were 14%+ and you could get 10% in a savings account. The Fed holding rates down is a major part of what led to the housing boom and bust. Interest rates serve a purpose and the Fed thinks you can just manipulate them at will without unintended consequences.

 

[Ratters]

don't worry about inflation, worry about deflation.

Deflation is what many mainstream economists really worry about, but it's not that bad of a problem. At least your savings don't get ripped away. The deflationary pressures of the last four years are one of the things that have kept us from having runaway inflation right now.

The funny thing about economists is that they're just like weathermen.

The get paid just as much if they're wrong.

Yes and no. The Austrian economists have been pretty right on over the last couple decades. But the economy is organic and not an exact science, which is what the government likes to think of it as. One of the reasons central planning never works.