# Inflation...



## Piratesailor (Nov 9, 2012)

I am no financial expert, not by a long shot, but I’m smart enough to know that you cannot keep printing money and not have consequences down the road. You also cannot rack up the debt either. 

I think the Weimar Republic, after WW!, learned that the hard way. I recently read a story about how their chief of the central bank printed money by the boat loads in order to pay down the debt as well as stimulate the economy only to have it backfire with runaway inflation. 

There are other examples too. 

In the US, we haven’t had the hyper inflation that has been seen in some countries but we’ve seen damaging inflation. The older folks here will remember the 1970 and Jimmy Carter (although Nixon screwed it up to start) and double digits inflation as well as interest rates in the teens. In fact, that is the age when credit card interest went to 18+% and never came down. 

We are currently printing money hand over fist and there is no end as the government, both sides, spend like drunk sailors. 

We beaten back inflation for the past decade or so but with covid and the democrats I’m seeing and reading more and more about inflation.

In fact, it’s already happening although on a smaller scale. How’s your gas prices lately? In one month diesel is up 44%. That will impact food and everything else soon. Housing and rents and a number of commodities are all up in price. The MSM just doesn’t comment on it.

So, to the point, we are seeing inflation and I feel we will see inflation similar if not worse than the 70’s. 

A number of questions and thoughts for those who may follow finance:

1. What’s the outlook on inflation and interest rates?
2. Will it lead to a moderate collapse of the overall economy?
3. Besides gold and silver, what are your hedges against inflation?

My answers are:

1. No hyper inflation but inflation in the single digits or low teens and interest rates in the upper teens. 
2. This will lead to a huge slowdown in the economy due to the cost of money. Unemployment will rise as businesses close and or automate or outsource. I think there will be a moderate collapse.
3. Gold and silver are not always a great hedge but a “good“ hedge. Commodities are the key as they will rise in price and investing in them should give some cushion. The question is how to invest.. actually own a commodity (tough to do) or and ETF or other method. 

Thoughts/comments?


----------



## pikepole20 (Nov 27, 2017)

Inflation, I believe, will occur. I was a teenager during the seventies and remember it well. You could get 10% on a CD but car loans were 21% on a new car. Home loans were 13% or so and credit cards were about like auto loans or a little higher.
If interest rates go up along with the cost of borrowing, the government will be in a very bad spot as the cost of paying the debt could exceed all the taxes the government takes in. It depends on how high it goes, I guess. Hence, I think some want the "great reset" sooner rather than later so as to give it soft landing. 

Sent from my SM-N970U using Tapatalk


----------



## 7515 (Aug 31, 2014)

I listen to a weekly podcast from Wes Moss called - money matters 
He is predicting inflation due to the amount of stimulus money being thrown around and that interest rates will follow inflation upward. 
His shows are in layman’s English and pretty entertaining.
Check out his shows for more details than I can type here. 
BoF


----------



## Piratesailor (Nov 9, 2012)

pikepole20 said:


> Inflation, I believe, will occur. I was a teenager during the seventies and remember it well. You could get 10% on a CD but car loans were 21% on a new car. Home loans were 13% or so and credit cards were about like auto loans or a little higher.
> If interest rates go up along with the cost of borrowing, the government will be in a very bad spot as the cost of paying the debt could exceed all the taxes the government takes in. It depends on how high it goes, I guess. Hence, I think some want the "great reset" sooner rather than later so as to give it soft landing.
> 
> Sent from my SM-N970U using Tapatalk


 Inflation first. Pay down the the debt with cheap dollars. then ramp up interest rates.
shell game.


----------



## Steve40th (Aug 17, 2016)

I was reading an article where the person was comparing inflation during Carter and comparing it to today. There was a key number, 18.3 I believe, which caused the crazy interest rates back then.
The number now is 28.5 I believe.
What does it mean? War or Hyper/Stag inflation is coming soon.


----------



## pikepole20 (Nov 27, 2017)

Inflation first. Pay down the the debt with cheap dollars. then ramp up interest rates.
shell game.

The problem is that it has never succeeded in the past that I am aware of with any country. The economic hit on the middle class would be huge with ensuing social unrest don't you think?

Sent from my SM-N970U using Tapatalk


----------



## Xstuntman (Feb 25, 2021)

They want even more inflation but I don't think it will happen. I foresee people saving the stimulus check money, paying bills, etc. In no way will it jump start an economy. 80 million voters got a stolen election and have no desire to support an illegitimate class of thieves. 

This house isn't buying anything other than necessary until the thieves are run out. Hit 'em where it counts.


----------



## Piratesailor (Nov 9, 2012)

Hell. I’m spending it.
on something they don’t want me to buy.


----------



## Brandau Sousa (Jan 31, 2021)

Inflation is 1 of the reasons people go to cryptomarket  but when I see dips like the other day when the whole market went 15% down I start to doubt if it is the right decision  its volatility really drives me mad sometimes!
UPD: on the other hand, this volatility is a chance to earn money trading. I recommend Redot, because it is a EU licensed exchange with a number of great security features like U2F protecrion (even Binance doesn't support it at the moment) and cold storage of crypto (the users of Thedox and Livecoin will understand the importance of security).


----------



## Piratesailor (Nov 9, 2012)

Drives me nuts too but I think you’re going to see more volatility in all the markets as this dementia addled president makes these proclamations. now is he follows up and actually does these things then Katy bar the door...... there will be rush to the financial exits and other types of commodities.


----------



## Ranger710Tango (Feb 27, 2021)

Piratesailor said:


> Drives me nuts too but I think you’re going to see more volatility in all the markets as this dementia addled president makes these proclamations. now is he follows up and actually does these things then Katy bar the door...... there will be rush to the financial exits and other types of commodities.


Look for capital gains tax to increase. There will be a stock dump before the end of the year.


----------

