Specialist · Auckland, Auckland · Member since 2010 · 16 posts · 1 vote
Is there a serious risk of hyper inflation happening with trillions of dollars of printed money being pumped into the world economy by governments around the globe? Historical evidence shows that when too much money chases too few goods-and-services it invariably results in inflation.
What should an investor do if hyper inflation does occur. I will appreciate your comments on this very important topic.
Eddie- you aren't old enuff to remember those interest rates! I am. As I've posted before, the inflation during those times annually was ALMOST the same. If you own lots of real estate, you'll become a millionaire almost overnight, on paper.
Less people will be able to get qualified. That WILL BE the time to sell on owner financing, if you ever plan on it, imo. At least a 12-14% rate will look good on paper. I took back lots of notes at 11-12% back in those days for commissions, sales, etc. Rich
I guess all of this commentary begs the question...what is considered "hyper inflation." That title seems a bit hyperbolic to me.
I don't think we are going to go from the reserve currency and the place where people fly to safety to a banana republic over night let everyone keeps claiming. I can understand being concerned about our terrible fiscal policy, but all of this talk about hyper inflation is silly to me.
I was following some of the posts today. Primarily this thread and the one linked below and the following thought crossed my mind. If inflation kicks in and interest rates rise to double digits, wouldn't situations like the one in the post below turn into positive positions?
Assuming Steve had a 30 year fixed note and an interest rate around 6-7%. Selling his property at a discounted rate like Rich suggests (11-12%) for the same price he bought it for would provide him with the relief he needs. I guess the question is can he hold out that long, and if not, what then?
Could it be that the Fed is actually trying to create inflation or hyper-inflation so that all of these underwater mortgages would regain their value?
Remember also- in hyperinflation, the interest paid on the monstrous debt of this country gets paid with less valuable dollars. That is also a benefit to the debtor, U.S. Rich
I DO! Furthermore, I think the ONLY conclusion that can be drawn logically is that the government is INTENTIONALLY trying to cause a collapse. Obviously, borrowing huge sums of money and adding TRILLIONS of dollars of entitlements when you have a debt crisis is either being done intentionally to cause the system to collapse or is total INSANITY! I don't believe that The Chosen One is insane - not for a moment.
I DO! Furthermore, I think the ONLY conclusion that can be drawn logically is that the government is INTENTIONALLY trying to cause a collapse. Obviously, borrowing huge sums of money and adding TRILLIONS of dollars of entitlements when you have a debt crisis is either being done intentionally to cause the system to collapse or is total INSANITY! I don't believe that The Chosen One is insane - not for a moment.
The then you would love, "The Create From Jekyll Island" if you want to pick up a copy. Some claim it is all being done intentionally to force a world currency down everyone's throat so that the IMF can control everything. The Fabians are supposedly in charge.
Seems a bit alarmist for my taste, but everyone thinks differently.
I used to think that we are 2-3 years before we hit inflation big time (if not hyper inflation), until I saw trouble is brewing in Europe. Japan is not in good shape either, so who's left? Emerging economies, right? China, India, Brazil... well, not so fast. Those countries did not developed solid domestic markets yet, they solely depend on US and Europe to be their markets, but if US and Europe are in trouble, those countries soon to follow.
I think Stagflation now rather than inflation.
BTW, MikeHO, entitlement is not something the government shove into people's throats. It is what people demand. As I said many times before, find me a law maker who is openly promoting cuts in Medicate, SS benefits, or any other entitlement program while his or her constituents are heading to the polls. I still remember the shouts in town meeting last summer: "Don't you dare touch my Medicare!!"
As I said many times before, find me a law maker who is openly promoting cuts in Medicate, SS benefits, or any other entitlement program while his or her constituents are heading to the polls. I still remember the shouts in town meeting last summer: "Don't you dare touch my Medicare!!"
As I said many times before, find me a law maker who is openly promoting cuts in Medicate, SS benefits, or any other entitlement program while his or her constituents are heading to the polls. I still remember the shouts in town meeting last summer: "Don't you dare touch my Medicare!!"
Congressman Paul Ryan of Southern Wisconsin.
Congratulation Rich! You have found one Righteous man in the whole Saddam and Gamora
Real estate is already a hedge against inflation - what more could you ask for? As the value of the dollar erodes, the dollars you are using to pay your bills and mortgage back with are worth less and less. If China calls all the loans they have bought up - the USA will have to declare bankruptcy!