Posted on 04/08/2009 10:33:53 AM PDT by fiscon1
The numbers are absolutely staggering. First, there was the 787 billion dollars stimulus. Then, there was the $400 billion plus omnibus spending bill, and now we are working on a budget north of $3.5 trillion. Furthermore, the Fed has announced that they will buy back more than a trillion dollars worth of Fannie/Treasury bonds. The federal government is pumping money into the system at an alarming rate. So, why haven't we seen the the ugly head of inflation yet? The answer lies in the economic term, the velocity of money.
(Excerpt) Read more at theeprovocateur.blogspot.com ...
its going to be bad.
very bad.
we are going to be price comparing bags of beans and rice in a few years.
Dave Ramsey, the financial guru, says the best hedge against inflation is paid off Real Estate.
until they hike the property taxes
That is, whatever you need to buy is still as expensive regardless of whether real estate is paid off, right?
Out of curiosity, what are the warning signs that this is coming, for us main street suckers to know when to start stockpiling food
Hopefully all this will happen fairly soon to make sure Obama gets the blame for it.
Exactly right. The government and most especially the various Green organizations can also condemn your land for any environmental charge they can make stick, no matter how trivial. If you rent out the real estate, you may get renters from hell. You also have to worry about the surrounding neighborhood. This is also true of ag land and recreational land.
the worst part is that it will sling shot. All of this loose money is pent up. Once it is released it will explode into the system.
How much more warning do you need?
Seriously, start stockpiling, not only food, but fuel, tools, toiletries, warm clothing and whatever you use the most or will miss the most and learn to manage the rotation of it until it becomes second nature. Get in the habit of shopping specials, know your prices and be willing to go to several stores for whatever, so you get the most value.
Inventory your skills and plan to maximize them for barter against the day.
Plan for electricity rationing. Plan alternative heating sources. Make good friends with physicians or, at the least, someone with medic skills. There will be black and gray markets for everything. We can participate or not, but we need to have useful skills to offer others.
You cannot begin too soon. It may not be evident to everyone, but the global fascist order is already here.
I think that is the plan. Obama knows he can cause high inflation and place the blame on capitalism. It gives him an excuse to do whatever he wants because his followers will never blame him. Also, it is a form of reparations because those with money will see it disappear while those who borrowed money will benefit.
No, what everyone needs to do is commit to coming to a tea party in their area. The revolution happens on the 15th of April. If you want to make a real stand, then show up on the 15th of April.
Actually, it would seem to me that a large mortgage with a very low fixed rate is a great hedge against inflation.
Ping.
The only difficulty would be if you were unable to maintain the mortgage and found yourself upside down (more mortgage than home value), then you would find yourself in the hole.
I think that's why Dave recommends "Paid For" property because you can't become "The Slave of the Lender" (as is so prevalent these days).
In fact he advises to start businesses in cash without loans and to only reinvest the profits until the foundation is secured. This way you don't lose your shirt in hard times (like these).
By the way, unemployment is about 8.5% and nobody is talking about the dominoes falling yet.
you can start now. IMO.
Understood. My point is that one characteristic of an inflationary environment would likely be a dramatic escalation of home prices.
One of the reason why we're seeing so many problems in the mortgage industry is that this is basically a DEflationary climate.
However, folks have discounted the risks such mortgages inherently have in case you lose your job or other calamity. I think that is why Dave recommends only "Paid For" investments. It is building upon a rock rather than upon sand.
As for personal property mortgages, he puts it this way - your mortgage is like 4 quarters, you pay all 4 to the bank and get 1 back from the government - how good an investment is that?
Tea parties underline citizen anger, anxiety and concern. I fail to understand how they are going to stop and reverse a cyclical global economic phenomenon. Can you explain how they will accomplish that?
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