I would love to lock in some 30 year Treasuries at 10%....who knows, it may happen:
http://www.bloomberg.com/apps/news?pid=20601208&sid=aL4DN7bHk3FU
http://www.bloomberg.com/apps/news?pid=20601208&sid=aL4DN7bHk3FU
inflation nightmare coming?
- Thread starter jrcase
- Start date
M
morganist
yes is suspect you could be right. if companies fail there will be less production reducing the output effectively cost push inflation. also less competition and oligopolies created due to business failure less sellers higher prices.
also senierage or quantitative easing as they re named the tactic. plus your point too.
i would predict it in 6 to 18 months.
the problem is not whether there is inflation so much, we know there is at the moment. it is when the govs admit it.
also senierage or quantitative easing as they re named the tactic. plus your point too.
i would predict it in 6 to 18 months.
the problem is not whether there is inflation so much, we know there is at the moment. it is when the govs admit it.
It's all deflationary right now.
And you're watching too many Peter Schiff videos on YouTube. You wouldn't happen to be a gold bug, would you?
M
morganist
in england although the price of certain goods is lower the necessity goods are more expensive. therefore although the aggregate price may be reducing it is not on the things people are buying.
effectively it boils down to whether you think that if something exists it has a value or whether the good has to be demanded that it has a value. if you follow the classical model you would argue that as long as the good exists the value will exist regardless of whether someone purchases it or not.
the problem is when you ask people what they experience they will say the price of most things they are BUYING are increasing therefore they are experiencing inflation.
i guess it depends what you think inflation is.
effectively it boils down to whether you think that if something exists it has a value or whether the good has to be demanded that it has a value. if you follow the classical model you would argue that as long as the good exists the value will exist regardless of whether someone purchases it or not.
the problem is when you ask people what they experience they will say the price of most things they are BUYING are increasing therefore they are experiencing inflation.
i guess it depends what you think inflation is.
inflation only works when people have jobs AND the money to pay higher prices. The average Joe is losing both of these right now
People don't seem to get it... Japan 30 yr yields at 1.92% right now. 170% debt to GDP ratio.
The more they print, the more it gets circulated, and goes to bid treasuries...
Only sell treasuries once you see WAGE inflation.
The more they print, the more it gets circulated, and goes to bid treasuries...
Only sell treasuries once you see WAGE inflation.
You might want to do a little more research about the result of a rapidly increasing money supply. Maybe you should look a little less at Japan and look what happened to a handful of European countries after WW1 after their own "stimulous packages". The peak MONTHLY rate of inflation in Russia was 213%, 275% in Poland, 134% in Austria, and 98% in Hungary. Those are monthly rates. Of course Germany's currency was completely destroyed. We all know it couldn't happen again because we are much smarter.
Even 10% ANNUAL rates would be huge now.Quote from harkm:
You might want to do a little more research about the result of a rapidly increasing money supply. Maybe you should look a little less at Japan and look what happened to a handful of European countries after WW1 after their own "stimulous packages". The peak MONTHLY rate of inflation in Russia was 213%, 275% in Poland, 134% in Austria, and 98% in Hungary. Those are monthly rates. Of course Germany's currency was completely destroyed. We all know it couldn't happen again because we are much smarter.
Buy some gold, silver and other stuff to hedge.. I have.. But that said, we're in deflation and 30 yr bonds are a steal. Wage inflation (which will be preceded by a very low unemployment rate) will be the signal to dump treasuries. 3 or 4 years early.