lost everything during the depression of the 1930's and he had alot of land borrowed via the bank. With deflation everyone will lose except for the 5% that have already made their money and will feast off the suffering!
This deflation of housing prices is good - the housing market got crazy, especially in the northeast. A 1500 square foot house in Long Island goes for 450K, ridiculous!
That's got to change. Then we get people buying in the high of housing and now "some" are getting screwed and they can't sell. Thank god I bought my house when the same 1500 square foot house was 175K, before the housing market exploded. I not worried, but hopefully some people will learn the hard way. Or maybe, you still need to rent. Nothing wrong with renting. Eventually, as the price of houses go down and more people default on there loans, there will be opportunities for others to buy at the deflated rates. Young couples, don't buy a house yet! Wait about a year.
IS the name of the game. The whole purpose of the Federal Reserve fractional reserve banking system is to create inflation = increase the money supply. The US Gov. survives by inflation because their fixed costs decrease in value as the money supply goes up. It's the ONLY way the Gov can pay it's bills. Asset prices will and must continue to rise along with the ever increasing supply of money. PM's must increase in value to support the mining industry because costs are going up. It's all going up including housing after the dust settles. It is inflate or die there is no other choice except for meltdown and start over. CIAO
My Grandfather stayed employed thruout the 30's as a salesman on commission and accumulated savings. He picked up decent rentable houses in the OKC area for but paying the back taxes. Okla City was relatively spared by the depression (compared to say Detroit or Cleveland)--- nevertheless folks there were so impoverished many could not maintain property taxes and this at a time when noone carried big mortgages like today.
Re inflation my childhood stamp collection includes a 10 mark German example which sent a first class letter in 1921, but also a 500 MILLION Mark stamp circa 1925 and reportedly it took even more 1st class postage eventually.
There are anecdotes of people there receiving a late parent's life insurance proceeds where the envelope postage cost more than the enclosed check!
I continue to believe many will see the day when dollarbills are used to light fires and as tp.
What you inflation people do not understand, is that "We" do understand! I do not know about you, but if I knew that the Fed was going to kill the U.S. economy via rising interest rates, only a fool would invest in anything!
It does not matter what you gold bug's say, the fed can print all the money as fast as they can, but in the end of the day, no one is going to buy your inflated house; the money supply may be increasing but it is evaporating via foreclosures!!!!!!!!!!! And the Fed is not going to help you!!!! They have already got their secured retirement and such! Do you think that they care about you!!!!!!!!!!!!!!!!!!!!
I know that 95% will disagree with me! But that is how the special 5% get richer! Deflation, not inflation is what our nation should be concerned with! I do not know about you, but I am saving money, not spending! I am worried about the future of my family!!!!! And in this environment do you think I am going to spend to support the economy!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!Hell know, I am saving money to help my family!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Yes, I will have to disagree with you on inflation. It is a vicious cycle that makes people poorer, especially the people who are saving their money. Regardless as to how much the Government massages the inflation number to make it sound tame, as consumers of everything from food, healthcare, housing etc. etc., we can feel the bite of higher prices in everything that we need for survival.
The interest rates paid to savers actually are lower then the rate of inflation, therefore the saver is punished by no real return or at best just stay even.
The FED has engineered one bubble after the other, just too deflate it after most everyone got caught in the web.
When Governments print too much money everyone gets hurt, as the currency will buy less and less and one needs more and more money just to stay above water so to say.
So please tell me how that is a good thing???????
There is a risk of inflation and tightening money supply risks at present. FED is printing paper but that is for the institutions, while the institutions tighten money supply for the public. Prices should continue moving higher as FED's paper starts to flood different areas but since the institutions are tightening the lending of money less will be able to borrow and contraction of economy should continue.
Will deflation occur is hard to say as much of manufacturing is produced over seas. So you can't expect your daily goods to fall as goods imported should either cost the same in case other countries also inflate their currencies to slow the rise of their value or the goods will rise due to the foreign exchange. Just because houses are dropping that doesn't mean deflation. Just because people stop spending due to lack to cash doesn't mean deflation because your typical walmart crap isn't falling as it's being imported mostly from China.
If the public starts to take pay cuts and manufacturing returns and they can sell goods at lower prices than it's worth importing than you might see deflation but that won't occur any time soon. The service sector might have to take a pay cut down the road but that would just stabilize inflation numbers. It's hard to say what is the next move for the bankers. 1930s depression was allowed to occur thanks to the banks and the next depression would be of same substance. The last 6 years bankers allowed cheap loans and pushed the public into debt, there is no reason to assume that the bankers didn't know what they were doing and likewise today there is no reason to doubt that the bankers will try to screw the public that was dumb enough to over extend themselves in debt.
Now is perfect time to be completely out of debt and have some bullion on hand.
The problem with "deflation" theorists is that they fail to take into account the Federal Reserve.
The reality is that in 1929 the Federal Reserve had a very different understanding of "deflation" and fiscal dynamics. In 1929 the Fed did everything exactly wrong. Since then we've had John Maynard Keynes and a whole succession of Fed chiefs who use greater and greater doses of fiscal stimulus (and restraint) in order to manipulate the economy.
(I'm not defending the Fed by the way, before you get your drawers in a wad).
The Fed will do everything to protect banks and "the haves". It will lie, cheat and steal to pretend that deflation is actually an issue, and that they stand for "protecting the dollar". The reality is they will screw the wage earners and defend the banks and shareholders until the cows come home.
And if you have a single shred of evidence to the contrary, just put it on the table. Because in my entire lifetime, I've seen the Fed talk a tough game on inflation and do exactly the opposite.
In the times we live now there will never be another great
depression.They have unlimited fiat printing system unlike
early 1900's.It is inflate or die.Somewhere down this path
Gold will have to enter the equation.
That is the thought of 95% that inflation will continue! That is what the people of Japan thought also! But take a gander at the Japan stock market (a picture of deflation). The Japan stock market crashed in the late 1980's and has yet to recover even half of it's previous value! What people fail to understand, the fed cannot print money fast enough, because of falling real estate prices money goes down the drain, as if it never existed! I am tired of the people of Kitco not giving the balanced information as to what is going on!