(n) stagflation (a period of slow economic growth and high unemployment (stagnation) while prices rise (inflation))
Learn it, Love it, Embrace it and hold it close to your bosom when you lay down at night.
That is all.
[URL]http://bloomberg.com/apps/news?pid=20601087&sid=aIeLg1djbBps&refer=home[/URL]
Faber says hyperinflation coming.
[QUOTE=ninerID;410435][URL]http://bloomberg.com/apps/news?pid=20601087&sid=aIeLg1djbBps&refer=home[/URL]
Faber says hyperinflation coming.[/QUOTE]
Yep, started putting money into TIPS last month.
[QUOTE=ninerID;410435][URL]http://bloomberg.com/apps/news?pid=20601087&sid=aIeLg1djbBps&refer=home[/URL]
Faber says hyperinflation coming.[/QUOTE]
I am a glass half full type.
I’ll sell you guys my physical gold at $5000 an ounce. If Faber is right, that’s a bargain at Zimbabwe inflation rates.
Who’s up first?
[URL]http://bloomberg.com/apps/news?pid=20601087&sid=aIeLg1djbBps&refer=home[/URL]Faber says hyperinflation coming.
This is kind of a blowhard opinion. Pretty sure the dollar is not going to half in value every month like Zimbabwe’s currency did.
Also, US loans are in dollars, not another currency in order to exascerbate any currency fluctuation. Not like we’re Poland holding loans in 30 different currencies.
Marc Faber’s a little nutty. Smart guy, but hyperinflation is tough to state. High Inflation, possibly, but hyperinflation is hard to see.
The current state is that the international unemployment rate (excluding China) is fairly high. When there is high unemployment, there is less demand for items. As such, there is nothing to justify an increase in prices in the short term. The only increase therefore comes from currency fluctuation.
The dollar is weakened against the Euro by the low interest rate and borrowing, but the Euro zone is staring no growth and high unemployment with financial policy of high interest rates and strict borrowing. The pound has been weak against the dollar because they are needing to take the same course as the US. And the Yen will not be helped terribly because their interest rate has been low (0%) since their lost decade.
The REAL risk is deflation. If unemployment gets higher, demand for items drop, item prices are reduced, which means companies make less, which means companies reduce salaries and layoff more, which means item prices are reduced, and the cycle continues.
I need the dollar to stay a little weak. Make more money that way.
I need the dollar to stay a little weak. Make more money that way.
Do you get paid in a foreign currency? It’s killing me as we have to buy some things in Euros.
[QUOTE=cakewalk5;410453]Do you get paid in a foreign currency? It’s killing me as we have to buy some things in Euros.[/QUOTE]
No, I’ll just say I have a little business down in South America and my return lessen when the dollar gets stronger due to the exchange rate. No, it has nothing to do with drugs. :biggrin:
No, I'll just say I have a little business down in South America and my return lessen when the dollar gets stronger due to the exchange rate. No, it has nothing to do with drugs. :biggrin:
You preempted the joke!!! Reading the first sentence, only thing I thought was Coca farm.
So is it human trafficking then?
[QUOTE=cakewalk5;410457]You preempted the joke!!! Reading the first sentence, only thing I thought was Coca farm.
So is it human trafficking then?[/QUOTE]
Yea, I knew that would be what people would think.
No, we actually purchased a small passenger bus that is currently roaming the streets of Lima, Peru doing what buses do, picking up and dropping people off, etc. Takes about two years to get the money back from the price of the bus and then everything else is gravy. When the dollar is weaker we make more money. It’s not a huge amount but it will hopefully pay for some of my kid’s college education one day. It’s a little risky as I’m not in Lima most of the time but the inlaws are and they keep an eye on things. Beats the heck out of the money sitting in a savings account earning 1.5% at best.
[QUOTE=cakewalk5;410447]This is kind of a blowhard opinion. Pretty sure the dollar is not going to half in value every month like Zimbabwe’s currency did.
Also, US loans are in dollars, not another currency in order to exascerbate any currency fluctuation. Not like we’re Poland holding loans in 30 different currencies.
Marc Faber’s a little nutty. Smart guy, but hyperinflation is tough to state. High Inflation, possibly, but hyperinflation is hard to see.
The current state is that the international unemployment rate (excluding China) is fairly high. When there is high unemployment, there is less demand for items. As such, there is nothing to justify an increase in prices in the short term. The only increase therefore comes from currency fluctuation.
The dollar is weakened against the Euro by the low interest rate and borrowing, but the Euro zone is staring no growth and high unemployment with financial policy of high interest rates and strict borrowing. The pound has been weak against the dollar because they are needing to take the same course as the US. And the Yen will not be helped terribly because their interest rate has been low (0%) since their lost decade.
The REAL risk is deflation. If unemployment gets higher, demand for items drop, item prices are reduced, which means companies make less, which means companies reduce salaries and layoff more, which means item prices are reduced, and the cycle continues.[/QUOTE]
Bill Gross from PIMCO is that you?
Okay look at the spreads between the 2 year and the 10 year and tell me what the market sees.
I think AC/DC saw it and summed it up best. Props for Angus and Bon Scott for their economic foresight.
Stagflation!) They’re puttin’ you down,
Stagflation!) All over town!
Stagflation!) ‘Cause you’re way outta reach,
Livin’ on the streets, you gotta practice what you preach!
Economic stagflation!
Markets own whippin’ boy!
Economic stagflation!
Take a chance while you still got the choice!
(Stagflation!) Left a happy home,
(Stagflation!) Just to live on your own!
(Stagflation!) You wanna live in sin,
Stagflation! Just a bundle of joy,
Stagflation!) You got dollars in your eye,
Stagflation!) Chasin’ that pie in the sky!
Economic Stagflation!
And you’re certain that Shining Path guerrillas don’t ride your bus to the coca fields? LOL.