[bsrsharma]

4Plex: I see no confusion. Fed & Govt are going to save US (mainly) and Global economic system (secondarily) with inflation. It is also true, a majority of us, particularly Americans will become poorer.

There is no contradiction; we will have to amputate legs to save life. To prevent 1930s style depression, we have to accept 1970s style inflation. I am sure everybody will agree we would rather have a replay of painful 1970s than even more painful 1930s.

[bsrsharma]

JWM & 4Plex,

I didn’t mean Weimar Germany style hyperinflation – more like Nixon-Ford-Carter style (1973-1982) that ended in revalueing $ to a new lower value (relative to asset classes). That helped real estate recovery (and because of that, general perception of prosperity) in the 1980s.

Also, all expensive wars are eventually paid by devaluation of currency and increased inflation. Inflation is the natural involuntary universal tax.

We, as a nation, wasted a lot of wealth building unneeded homes (and waging a profitless war). We, as a nation, are going to pay the price with a lower standard of living. That is what inflation does.

Money supply vs. price is technicality. Reality is simpler – we wasted money and have to live poor.

[bsrsharma]

JWM & 4Plex,

I didn’t mean Weimar Germany style hyperinflation – more like Nixon-Ford-Carter style (1973-1982) that ended in revalueing $ to a new lower value (relative to asset classes). That helped real estate recovery (and because of that, general perception of prosperity) in the 1980s.

Also, all expensive wars are eventually paid by devaluation of currency and increased inflation. Inflation is the natural involuntary universal tax.

We, as a nation, wasted a lot of wealth building unneeded homes (and waging a profitless war). We, as a nation, are going to pay the price with a lower standard of living. That is what inflation does.

Money supply vs. price is technicality. Reality is simpler – we wasted money and have to live poor.

[bsrsharma]

JWM & 4Plex,

I didn’t mean Weimar Germany style hyperinflation – more like Nixon-Ford-Carter style (1973-1982) that ended in revalueing $ to a new lower value (relative to asset classes). That helped real estate recovery (and because of that, general perception of prosperity) in the 1980s.

Also, all expensive wars are eventually paid by devaluation of currency and increased inflation. Inflation is the natural involuntary universal tax.

We, as a nation, wasted a lot of wealth building unneeded homes (and waging a profitless war). We, as a nation, are going to pay the price with a lower standard of living. That is what inflation does.

Money supply vs. price is technicality. Reality is simpler – we wasted money and have to live poor.

[bsrsharma]

JWM & 4Plex,

I didn’t mean Weimar Germany style hyperinflation – more like Nixon-Ford-Carter style (1973-1982) that ended in revalueing $ to a new lower value (relative to asset classes). That helped real estate recovery (and because of that, general perception of prosperity) in the 1980s.

Also, all expensive wars are eventually paid by devaluation of currency and increased inflation. Inflation is the natural involuntary universal tax.

We, as a nation, wasted a lot of wealth building unneeded homes (and waging a profitless war). We, as a nation, are going to pay the price with a lower standard of living. That is what inflation does.

Money supply vs. price is technicality. Reality is simpler – we wasted money and have to live poor.

[bsrsharma]

JWM & 4Plex,

I didn’t mean Weimar Germany style hyperinflation – more like Nixon-Ford-Carter style (1973-1982) that ended in revalueing $ to a new lower value (relative to asset classes). That helped real estate recovery (and because of that, general perception of prosperity) in the 1980s.

Also, all expensive wars are eventually paid by devaluation of currency and increased inflation. Inflation is the natural involuntary universal tax.

We, as a nation, wasted a lot of wealth building unneeded homes (and waging a profitless war). We, as a nation, are going to pay the price with a lower standard of living. That is what inflation does.

Money supply vs. price is technicality. Reality is simpler – we wasted money and have to live poor.

[bsrsharma]

Simpler explanation – Fashion Valley (and even Costco) tends to cater to folks who are not that sensitive to economic cycles. The impact is much more dramatic at lower end first. Try seeing what people are buying at WalMart/KMart etc., My guess is it is mostly consumer staples.

[bsrsharma]

Simpler explanation – Fashion Valley (and even Costco) tends to cater to folks who are not that sensitive to economic cycles. The impact is much more dramatic at lower end first. Try seeing what people are buying at WalMart/KMart etc., My guess is it is mostly consumer staples.

[bsrsharma]

Simpler explanation – Fashion Valley (and even Costco) tends to cater to folks who are not that sensitive to economic cycles. The impact is much more dramatic at lower end first. Try seeing what people are buying at WalMart/KMart etc., My guess is it is mostly consumer staples.

[bsrsharma]

Simpler explanation – Fashion Valley (and even Costco) tends to cater to folks who are not that sensitive to economic cycles. The impact is much more dramatic at lower end first. Try seeing what people are buying at WalMart/KMart etc., My guess is it is mostly consumer staples.

[bsrsharma]

Simpler explanation – Fashion Valley (and even Costco) tends to cater to folks who are not that sensitive to economic cycles. The impact is much more dramatic at lower end first. Try seeing what people are buying at WalMart/KMart etc., My guess is it is mostly consumer staples.

[bsrsharma]

0% interest, 600K “free money” are all fun to talk of; but the way the cookie will crumble, in my opinion, is through a robust and sustained inflation (helped on with robust and sustained devaluation of $). By eventually creating a perception that US $ has doubtful value, people will be forced to go back and buy up real estate to lock in whatever wealth they may have. This is Bernanke’s monetary philosophy and he has been truthful to his belief so far. His mantra – “Full steam ahead, inflation be damned”.

BTW, if anyone thinks I am cynical etc., I completely agree with BB on this! The most rational solution to our national problem now is a dose of robust and sustained inflation so that our debts, public and private, become lower in real value. This will also make our products and factors of production internationally competitive. Just ask yourself – how many of you will buy a Honda or Toyota when it costs $50K, $100K …. How many will buy a BMW or MB when it costs 100K, 200K ….

[bsrsharma]

0% interest, 600K “free money” are all fun to talk of; but the way the cookie will crumble, in my opinion, is through a robust and sustained inflation (helped on with robust and sustained devaluation of $). By eventually creating a perception that US $ has doubtful value, people will be forced to go back and buy up real estate to lock in whatever wealth they may have. This is Bernanke’s monetary philosophy and he has been truthful to his belief so far. His mantra – “Full steam ahead, inflation be damned”.

BTW, if anyone thinks I am cynical etc., I completely agree with BB on this! The most rational solution to our national problem now is a dose of robust and sustained inflation so that our debts, public and private, become lower in real value. This will also make our products and factors of production internationally competitive. Just ask yourself – how many of you will buy a Honda or Toyota when it costs $50K, $100K …. How many will buy a BMW or MB when it costs 100K, 200K ….

[bsrsharma]

0% interest, 600K “free money” are all fun to talk of; but the way the cookie will crumble, in my opinion, is through a robust and sustained inflation (helped on with robust and sustained devaluation of $). By eventually creating a perception that US $ has doubtful value, people will be forced to go back and buy up real estate to lock in whatever wealth they may have. This is Bernanke’s monetary philosophy and he has been truthful to his belief so far. His mantra – “Full steam ahead, inflation be damned”.

BTW, if anyone thinks I am cynical etc., I completely agree with BB on this! The most rational solution to our national problem now is a dose of robust and sustained inflation so that our debts, public and private, become lower in real value. This will also make our products and factors of production internationally competitive. Just ask yourself – how many of you will buy a Honda or Toyota when it costs $50K, $100K …. How many will buy a BMW or MB when it costs 100K, 200K ….

[bsrsharma]

0% interest, 600K “free money” are all fun to talk of; but the way the cookie will crumble, in my opinion, is through a robust and sustained inflation (helped on with robust and sustained devaluation of $). By eventually creating a perception that US $ has doubtful value, people will be forced to go back and buy up real estate to lock in whatever wealth they may have. This is Bernanke’s monetary philosophy and he has been truthful to his belief so far. His mantra – “Full steam ahead, inflation be damned”.

BTW, if anyone thinks I am cynical etc., I completely agree with BB on this! The most rational solution to our national problem now is a dose of robust and sustained inflation so that our debts, public and private, become lower in real value. This will also make our products and factors of production internationally competitive. Just ask yourself – how many of you will buy a Honda or Toyota when it costs $50K, $100K …. How many will buy a BMW or MB when it costs 100K, 200K ….

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