Off Topic: “Buffett says U.S. Treasury bubble one for the ages”

[Nor-LA-SD-guy]

[quote=svelte][quote=scaredycat]what about the dude who is just holding cash dollars in this usa bank acct hoping to buya house someday. is he screed? [/quote]

More and more people are being converted to the “inflation is coming” camp, and I agree. Everything points in that direction. It may happen in 2009, it may happen in 2012, but it’s coming, and I think it will be very high inflation.

With that said, those who were robbed of buying a house the last few years (by the housing bubble) may find themselves robbed again (by the reduced purchasing power of their saved cash) if they aren’t careful.

Everything is a gamble of course, but I think 2009 may be as good as it gets, meaning housing has dropped considerably yet mortgage rates are extremely attractive. Once inflation skyrockets, mortgage rates will add hundreds to your potential monthly payment. in my mind, better to lock in 30 yr fixed and buy in 2009.

Personally, if I were renting right now, I would be studying the area I was interested in in very great detail so that this fall I could be making an offer on SOMETHING.

It all depends on how big a gambler you are…

Good luck.

[/quote]

With inflation will it not cost more to build a home ???

I know that still sounds cheaper in most SD area’s but move out a bit (say T.V.) and then it’s going to cost more than today for a home.

Gold hmmm can’t eat it, it won’t keep you warm etc…

to each their own.

[gandalf]

Good post, John. IMHO, this is ‘Question of the Year’.

We’ve got tremendous fiscal stimulus in the short term, immediate attempts at stabilization and also mitigation of unemployment — then collapse of the currency in the longer-term, debasement of debt and ‘reset’ of the economy, possibly with broader geopolitical consequences. Only way out as I see it.

Dollar savers will get screwed. And housing won’t come back for 20 years, not in real terms. I suspect housing price appreciation will lag inflation for a number of years to come. Property financed on a fixed rate might be a winner. What else? Gold? Commodities? Stocks?

[gandalf]

Good post, John. IMHO, this is ‘Question of the Year’.

We’ve got tremendous fiscal stimulus in the short term, immediate attempts at stabilization and also mitigation of unemployment — then collapse of the currency in the longer-term, debasement of debt and ‘reset’ of the economy, possibly with broader geopolitical consequences. Only way out as I see it.

Dollar savers will get screwed. And housing won’t come back for 20 years, not in real terms. I suspect housing price appreciation will lag inflation for a number of years to come. Property financed on a fixed rate might be a winner. What else? Gold? Commodities? Stocks?

[gandalf]

Good post, John. IMHO, this is ‘Question of the Year’.

We’ve got tremendous fiscal stimulus in the short term, immediate attempts at stabilization and also mitigation of unemployment — then collapse of the currency in the longer-term, debasement of debt and ‘reset’ of the economy, possibly with broader geopolitical consequences. Only way out as I see it.

Dollar savers will get screwed. And housing won’t come back for 20 years, not in real terms. I suspect housing price appreciation will lag inflation for a number of years to come. Property financed on a fixed rate might be a winner. What else? Gold? Commodities? Stocks?

[gandalf]

Good post, John. IMHO, this is ‘Question of the Year’.

We’ve got tremendous fiscal stimulus in the short term, immediate attempts at stabilization and also mitigation of unemployment — then collapse of the currency in the longer-term, debasement of debt and ‘reset’ of the economy, possibly with broader geopolitical consequences. Only way out as I see it.

Dollar savers will get screwed. And housing won’t come back for 20 years, not in real terms. I suspect housing price appreciation will lag inflation for a number of years to come. Property financed on a fixed rate might be a winner. What else? Gold? Commodities? Stocks?

[gandalf]

Good post, John. IMHO, this is ‘Question of the Year’.

We’ve got tremendous fiscal stimulus in the short term, immediate attempts at stabilization and also mitigation of unemployment — then collapse of the currency in the longer-term, debasement of debt and ‘reset’ of the economy, possibly with broader geopolitical consequences. Only way out as I see it.

Dollar savers will get screwed. And housing won’t come back for 20 years, not in real terms. I suspect housing price appreciation will lag inflation for a number of years to come. Property financed on a fixed rate might be a winner. What else? Gold? Commodities? Stocks?

[underdose]

[quote=Nor-LA-SD-guy]
Gold hmmm can’t eat it, it won’t keep you warm etc…

to each their own.

[/quote]

I absolutely agree with that. That’s why I said that replacing paper money with metal money is kind of an almost arbitrary thing. But, you can’t eat greenbacks any more than you can eat gold, and yet people still accept these silly pieces of paper in exchange for food. The gold bet is, like I said, speculative, hoping that people will accept gold in exchange for food when faith in paper money evaporates. I see the logic of gold bugs, that it’s human nature that we are unlikely to go all the way back to the barter system entirely, so some medium of exchange will be needed and gold is the time honored convention. I personally have no faith in gold either, I think it is almost worthless. Kind of pretty, much harder to counterfeit than paper money (in my opinion, Bernanke is currently engaged in counterfeiting), but otherwise largely useless. But if people all jump on board because that’s what they do… Oh what the heck.

[underdose]

[quote=Nor-LA-SD-guy]
Gold hmmm can’t eat it, it won’t keep you warm etc…

to each their own.

[/quote]

I absolutely agree with that. That’s why I said that replacing paper money with metal money is kind of an almost arbitrary thing. But, you can’t eat greenbacks any more than you can eat gold, and yet people still accept these silly pieces of paper in exchange for food. The gold bet is, like I said, speculative, hoping that people will accept gold in exchange for food when faith in paper money evaporates. I see the logic of gold bugs, that it’s human nature that we are unlikely to go all the way back to the barter system entirely, so some medium of exchange will be needed and gold is the time honored convention. I personally have no faith in gold either, I think it is almost worthless. Kind of pretty, much harder to counterfeit than paper money (in my opinion, Bernanke is currently engaged in counterfeiting), but otherwise largely useless. But if people all jump on board because that’s what they do… Oh what the heck.

[underdose]

[quote=Nor-LA-SD-guy]
Gold hmmm can’t eat it, it won’t keep you warm etc…

to each their own.

[/quote]

I absolutely agree with that. That’s why I said that replacing paper money with metal money is kind of an almost arbitrary thing. But, you can’t eat greenbacks any more than you can eat gold, and yet people still accept these silly pieces of paper in exchange for food. The gold bet is, like I said, speculative, hoping that people will accept gold in exchange for food when faith in paper money evaporates. I see the logic of gold bugs, that it’s human nature that we are unlikely to go all the way back to the barter system entirely, so some medium of exchange will be needed and gold is the time honored convention. I personally have no faith in gold either, I think it is almost worthless. Kind of pretty, much harder to counterfeit than paper money (in my opinion, Bernanke is currently engaged in counterfeiting), but otherwise largely useless. But if people all jump on board because that’s what they do… Oh what the heck.

[underdose]

[quote=Nor-LA-SD-guy]
Gold hmmm can’t eat it, it won’t keep you warm etc…

to each their own.

[/quote]

I absolutely agree with that. That’s why I said that replacing paper money with metal money is kind of an almost arbitrary thing. But, you can’t eat greenbacks any more than you can eat gold, and yet people still accept these silly pieces of paper in exchange for food. The gold bet is, like I said, speculative, hoping that people will accept gold in exchange for food when faith in paper money evaporates. I see the logic of gold bugs, that it’s human nature that we are unlikely to go all the way back to the barter system entirely, so some medium of exchange will be needed and gold is the time honored convention. I personally have no faith in gold either, I think it is almost worthless. Kind of pretty, much harder to counterfeit than paper money (in my opinion, Bernanke is currently engaged in counterfeiting), but otherwise largely useless. But if people all jump on board because that’s what they do… Oh what the heck.

[underdose]

[quote=Nor-LA-SD-guy]
Gold hmmm can’t eat it, it won’t keep you warm etc…

to each their own.

[/quote]

I absolutely agree with that. That’s why I said that replacing paper money with metal money is kind of an almost arbitrary thing. But, you can’t eat greenbacks any more than you can eat gold, and yet people still accept these silly pieces of paper in exchange for food. The gold bet is, like I said, speculative, hoping that people will accept gold in exchange for food when faith in paper money evaporates. I see the logic of gold bugs, that it’s human nature that we are unlikely to go all the way back to the barter system entirely, so some medium of exchange will be needed and gold is the time honored convention. I personally have no faith in gold either, I think it is almost worthless. Kind of pretty, much harder to counterfeit than paper money (in my opinion, Bernanke is currently engaged in counterfeiting), but otherwise largely useless. But if people all jump on board because that’s what they do… Oh what the heck.

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