[an]

[quote=spdrun]Except that most people in developed countries see America as all nice and fuzzy until they get down to the gory details.

People outside the US *like* their month of time off every year. They *like* having their working hours be limited to a sane amount. The US is nice for them to visit. Few want to stay once the details become known.

BTW – in the 20th century, working hours were historically longer abroad than in the US. It’s only recently (past 2-3 decades) that the situation flipped. This didn’t actually make the US any less competitive.[/quote]Unless you’re in Asia. Try working for a Japanese or a Korean company and let me know what you find out.

[an]

[quote=CA renter][quote=AN][quote=spdrun]Frankly, the world might need a collapse to set things back a few decades. Right now, the trend is to more control, more automation, more surveillance. It would be good if innovation was stopped in its tracks (or at least slowed down) for a few decades so we had time to think where society is going, and whether we want it to go there. Delay the Singularity, so to speak.

If it results in some level of mayhem, so be it.[/quote]
What make you think it’ll be only a few decades? What if it turns out to be a few centuries and the only ones left standing are the 1% and we all are sold into indenture servitude? The 1% can afford to buy their private armies to protect themselves.[/quote]

During deflationary times, the wealth and income gaps narrow, sometimes drastically.

Inflation is what gives the 1% their power. Deflation gives workers (and others living on a fixed income) more power. Asset prices fall much faster than wages, on average.[/quote]
I’m responding to this:
[quote=spdrun]Frankly, the world might need a collapse to set things back a few decades.[/quote]I’m not talking about minor deflation but an all out collapse of the banking system.

BTW, deflation might give those workers who still have jobs more power, but as we saw in 2008, there are many who lose their jobs, so no power.

[an]

[quote=spdrun]Frankly, the world might need a collapse to set things back a few decades. Right now, the trend is to more control, more automation, more surveillance. It would be good if innovation was stopped in its tracks (or at least slowed down) for a few decades so we had time to think where society is going, and whether we want it to go there. Delay the Singularity, so to speak.

If it results in some level of mayhem, so be it.[/quote]
What make you think it’ll be only a few decades? What if it turns out to be a few centuries and the only ones left standing are the 1% and we all are sold into indenture servitude? The 1% can afford to buy their private armies to protect themselves.

[an]

To put housing cost into historical perspective, lets take this house for example: http://www.sdlookup.com/MLS-150001489-17050_Edina_Ct_Poway_CA_92064

In 1989, it was sold for $625,000. The mortgage rate back then was ~9%, which means the monthly payment was $4000/month.
In 2014, it’s asking for ~$1.2M. The mortgage today is ~3.750%. Which means the mortgage is ~$4500/month.

So, over 25 years, the monthly payment difference between someone who bought that house today vs 25 years ago is only 12.5%. That’s much less than the rate of inflation & income growth over the last 25 years. So, it’s much cheaper to buy today than it was 25 years ago.

[an]

Based on that list, I think the big oil company have a much higher probability of a much bigger gain, IMHO. I think oil went down up too far too fast.

[an]

I refuse to live in a hopeless world.

[an]

[quote=FlyerInHi]Certain people said that stimulus spending and Fed printing would cause inflation, even though it hasn’t.

So I assume you want a lot more stimulus spending and Fed printing, until we get the inflation you want.[/quote]I don’t know or care how we get inflation, I just hope that we do. Key word here is hope. I don’t plan on hope. However, it doesn’t hurt to hope. Just like I hope that one day, when I decide to pay the lottery, I’ll pick the correct 6 numbers.

I don’t mind another crash either.

[an]

Same reason you’re hoping for a 2008 repeat.

[an]

[quote=spdrun]AN: Difference is, I’m not done buying. So a good crash would give me an opportunity to buy more property, cheaper. With any luck, maybe I’ll even see a few of yours at the sheriff’s auction![/quote]What are you talking about? Who said I’m ever done. I just said I got what I needed. If we see another big crash, I’ll be buying more. Which mean you won’t be seeing any of mine at the sheriff’s auction. But unlike you, I don’t need to buy more. I got enough.

[an]

[quote=spdrun]True. But I don’t feel a shred of empathy for you and I personally hope that your grand plan fails.[/quote]I’m not asking for your empathy. I don’t want it even if you give it. I was stating what I want. As we all know, in life, you don’t always get what you want. I’ll be just fine if I don’t get what I want.

BTW, what grand plan are you talking about? You mean the grand plan of owning rentals and making $ cash-on-cash? So you’re hoping for yourself to fail too? I didn’t know you’re a masochist.

[an]

[quote=spdrun]You can do that anyway with leveraged property.[/quote]Yeah, but it would take you 30 years to pay off that loan. I want to be able to pay it off in 5. See the difference?
[quote=spdrun]If you bought in SD in 2009 or 2010, shouldn’t you already have quite a bit of equity?[/quote]I don’t care about equity, I want no more debt.

[an]

[quote=spdrun]AN: I was exaggerating a bit. But seriously, if you want inflation to feel good about how much money you’re making, buy some Zimbucks.[/quote]I’m not talking about touchy feely stuff. I’m talking about inflation eroding away my debts. Then I can retire and live off the rents when I have no more debt.

[an]

[quote=spdrun]And meanwhile your purchasing power will be eroded by inflation. Do you want purchasing power or money?

If you want money, just get a few trillion Zimbabwe bucks, dump them on your bed, and wallow in them laughing maniacally.[/quote]$15/hr. minimum wage won’t get you Zimbabwe hyper-inflation. I said inflation, not hyper inflation. I want a repeat of 70s/80s, not Zimbabwe.

[an]

[quote=spdrun]Those $15 min wage jobs will be automated away really quickly. Who needs a Mickey Dee’s cashier when you can have a touch screen?

But why are you hoping for it? If you’re interested in the same things most people on this board are, it will increase the competition to buy cheap r.e. and rent it out.

What’s in it for you unless you’re getting $10/hr?

As far as deflation, if it happens with rates at zero, there may be little that can be done to prevent it (QE4 would be seen as an acknowledgment of economic failure, which might actually speed the process).[/quote]What’s in it for me? One simple word: inflation. I’m hoping for a repeat of 70s/early 80s, when wages were inflating like crazy. Look at what happen to rent and housing price then and you’ll understand why I want $15/hr. Better yet, lets go straight to $25/hr.

I got what I needed. Now, lets inflate away my debt.

[an]

[quote=The-Shoveler]IMO the least likely thing to occur is long term deflation.

You might get a dip here or there but TPTB will do “ANYTHING and EVERYTHING” in their power to avoid it (for very good reasons BTW).

IMO we will start to finally see wage inflation even if they have to force it from the bottom.[/quote]I totally agree. TPTB hates deflation and they will do anything to keep it from happening for a long period of time.

I hope we start to see some serious wage inflation. We can start with a $15 living wage.

[Author]

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