Home › Forums › Financial Markets/Economics › Inflation – Has it arrived?
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davelj.
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February 22, 2011 at 12:05 PM #670704February 22, 2011 at 12:32 PM #669572
Rich ToscanoKeymaster[quote=briansd1]What’s to complain about?
Our economy was misaligned toward too much consumer spending and not enough saving. Higher prices and interest rates will cause to eat less, buy less junk, and save more. Not too bad.[/quote]
No, higher REAL interest rates would cause that. Right now real interest rates are negative — a huge disincentive to save — and the Fed will ensure that they remain negative, to the extent it’s able (which as I’ve often said is until the foreigners pull the plug).
February 22, 2011 at 12:32 PM #669634Rich ToscanoKeymaster[quote=briansd1]What’s to complain about?
Our economy was misaligned toward too much consumer spending and not enough saving. Higher prices and interest rates will cause to eat less, buy less junk, and save more. Not too bad.[/quote]
No, higher REAL interest rates would cause that. Right now real interest rates are negative — a huge disincentive to save — and the Fed will ensure that they remain negative, to the extent it’s able (which as I’ve often said is until the foreigners pull the plug).
February 22, 2011 at 12:32 PM #670241Rich ToscanoKeymaster[quote=briansd1]What’s to complain about?
Our economy was misaligned toward too much consumer spending and not enough saving. Higher prices and interest rates will cause to eat less, buy less junk, and save more. Not too bad.[/quote]
No, higher REAL interest rates would cause that. Right now real interest rates are negative — a huge disincentive to save — and the Fed will ensure that they remain negative, to the extent it’s able (which as I’ve often said is until the foreigners pull the plug).
February 22, 2011 at 12:32 PM #670380Rich ToscanoKeymaster[quote=briansd1]What’s to complain about?
Our economy was misaligned toward too much consumer spending and not enough saving. Higher prices and interest rates will cause to eat less, buy less junk, and save more. Not too bad.[/quote]
No, higher REAL interest rates would cause that. Right now real interest rates are negative — a huge disincentive to save — and the Fed will ensure that they remain negative, to the extent it’s able (which as I’ve often said is until the foreigners pull the plug).
February 22, 2011 at 12:32 PM #670724Rich ToscanoKeymaster[quote=briansd1]What’s to complain about?
Our economy was misaligned toward too much consumer spending and not enough saving. Higher prices and interest rates will cause to eat less, buy less junk, and save more. Not too bad.[/quote]
No, higher REAL interest rates would cause that. Right now real interest rates are negative — a huge disincentive to save — and the Fed will ensure that they remain negative, to the extent it’s able (which as I’ve often said is until the foreigners pull the plug).
February 22, 2011 at 7:21 PM #669787CA renter
Participant[quote=socrattt]Sometimes it’s just really nice to look back at posts and know that you were spot on, rather than wrong :). I sensed it coming and the lagging indicators were definitely there.
If I were asked to predict where things were going I’d say we are going to see a short term spike in commodity prices and equities, but I believe something ugly is lurking. Another crash, possibly, but this time something on a grander scale (it could be some time to come, but current prices are just unsustainable). I even see metals being crushed again. I wish I could buy 100oz bars of grain![/quote]
Agreed.
February 22, 2011 at 7:21 PM #669849Participant[quote=socrattt]Sometimes it’s just really nice to look back at posts and know that you were spot on, rather than wrong :). I sensed it coming and the lagging indicators were definitely there.
If I were asked to predict where things were going I’d say we are going to see a short term spike in commodity prices and equities, but I believe something ugly is lurking. Another crash, possibly, but this time something on a grander scale (it could be some time to come, but current prices are just unsustainable). I even see metals being crushed again. I wish I could buy 100oz bars of grain![/quote]
Agreed.
February 22, 2011 at 7:21 PM #670457Participant[quote=socrattt]Sometimes it’s just really nice to look back at posts and know that you were spot on, rather than wrong :). I sensed it coming and the lagging indicators were definitely there.
If I were asked to predict where things were going I’d say we are going to see a short term spike in commodity prices and equities, but I believe something ugly is lurking. Another crash, possibly, but this time something on a grander scale (it could be some time to come, but current prices are just unsustainable). I even see metals being crushed again. I wish I could buy 100oz bars of grain![/quote]
Agreed.
February 22, 2011 at 7:21 PM #670597Participant[quote=socrattt]Sometimes it’s just really nice to look back at posts and know that you were spot on, rather than wrong :). I sensed it coming and the lagging indicators were definitely there.
If I were asked to predict where things were going I’d say we are going to see a short term spike in commodity prices and equities, but I believe something ugly is lurking. Another crash, possibly, but this time something on a grander scale (it could be some time to come, but current prices are just unsustainable). I even see metals being crushed again. I wish I could buy 100oz bars of grain![/quote]
Agreed.
February 22, 2011 at 7:21 PM #670939Participant[quote=socrattt]Sometimes it’s just really nice to look back at posts and know that you were spot on, rather than wrong :). I sensed it coming and the lagging indicators were definitely there.
If I were asked to predict where things were going I’d say we are going to see a short term spike in commodity prices and equities, but I believe something ugly is lurking. Another crash, possibly, but this time something on a grander scale (it could be some time to come, but current prices are just unsustainable). I even see metals being crushed again. I wish I could buy 100oz bars of grain![/quote]
Agreed.
February 22, 2011 at 8:06 PM #669822sdrealtor
ParticipantSaid the Deflationista while looking at rising prices….
February 22, 2011 at 8:06 PM #669884ParticipantSaid the Deflationista while looking at rising prices….
February 22, 2011 at 8:06 PM #670492ParticipantSaid the Deflationista while looking at rising prices….
February 22, 2011 at 8:06 PM #670632ParticipantSaid the Deflationista while looking at rising prices….
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