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I think hyperinflation is about due for the USA. it will allow people to pay off those 600k homes with just 1 paycheck.
Hyper-inflation will not occur for another 11-12 years and the rate will be about 35%-45% annually, as best I can tell. That would be more than post-WW I but not as much as Civil War.
Deflating...
Mircea
Quote:
Originally Posted by florida.bob
That does put a damper on it. But, in spite of that, after todays numbers it will likely be 22 months of consecutive private sector job growth.
At 200,000 jobs per month, it would take 26 months to return to the unemployment rate to 5%, but then I'm not factoring in the 115,000 new entrants every month.
I know the MSM puts it at 150,000 to 200,000 just to absorb new entrants, but I run a little more conservatively.
However if your unemployment rate is 5% but the labor participation rate is 64% or less, then you have failed. And you will see your failure when your FICA taxes get increased to about 16.4% sometime between 2020 and 2028.
Hyper-inflation will not occur for another 11-12 years and the rate will be about 35%-45% annually, as best I can tell. That would be more than post-WW I but not as much as Civil War.
Deflating...
Mircea
At 200,000 jobs per month, it would take 26 months to return to the unemployment rate to 5%, but then I'm not factoring in the 115,000 new entrants every month.
I know the MSM puts it at 150,000 to 200,000 just to absorb new entrants, but I run a little more conservatively.
However if your unemployment rate is 5% but the labor participation rate is 64% or less, then you have failed. And you will see your failure when your FICA taxes get increased to about 16.4% sometime between 2020 and 2028.
Good luck with that...
Mircea
You are correct, hyperinflation is going to start .... Err ... well, according to Beck, a loaf of bread is going to cost $25....oh wait ..a year ago? These Fear Masters just get me so, feeerd?
How do investors react to money printing? they run up commodity prices by parking cash there...
Remember the news stories of Goldman Sachs having copper warehouses in Michigan?
Jp Morgan renting fuel tankers and parking fuel there?
Prices will not stabilize. I have been seeing 20% increases in my material costs over the last two stimulus plans......
It's not about what people/business will do or react. The FED has a mandate to stabilize prices. That is its job.
If prices are falling, the FED will expand the money supply. It can do that by lowering the interest rate. But once those rates are near zero, which is the case right now, then the next thing to do is quantative easing (QE or if you prefer, printing money). It's not rocket science, whereby you can calculate to the nearest inch where you want to land on the moon. The FED will estimate how much money it will pump into the economy to stabilize prices. If it overestimates, it can always contract the money supply. More often than not, it underestimates, which then it will have another round of QE, which it is planning to do a third round.
Also, the stabilizing of prices from the actions undertaken by the FED doesn't happen overnight. It might take anywhere from 6 months to a year to see the actual effect on the economy.
Note: in the case of running away inflation, the above equation becomes:
rising prices (because of overheating economy) + falling prices ( Fed action of contracting money supply) = stabilizing prices.
Now, it's true that there will be speculators that will bet on certain prices, but it's always a gamble for these people. Nothing is written in stone. You could be lucky, and make the right bet and get rich. But for every get-to-rich story, there are one hundred stories of those who lose, and you never hear from these people.
"Federal Reserve May Try Third Stimulus If Economy Worsens, Experts Say"
No worries didn't you hear about the great payroll report??? The bailouts worked!!!!
Euro socialism will work fine and if it don't WE will give them $$$$, YAY!!!!
That said the markets are set up for a nice crash that will probably start next week...
That will further strengthen the $$$ and should drop oil prices AND take bonds even higher possibly to historic nosebleed prices setting the stage for Bannana Bens favorite tool, $$$ printing....
I don't understand why anyone would be happy about that though...
Obama wants the debt ceiling raised again by 1.2 trillion.. this will continue till we just print money and one sheet of toilet paper will be worth more than a dollar bill.
You are correct, hyperinflation is going to start .... Err ... well, according to Beck, a loaf of bread is going to cost $25....oh wait ..a year ago? These Fear Masters just get me so, feeerd?
A year ago I bought a box of dog biscuits for my dog.. now they are double the price for the same box. Even dogs will feel inflation and my food bill at the grocery store is climbing . Milk close to $4 a gallon and gas prices are expected to raise way above $4 this year .
Did I tell you Obama doesn't want to drill but for us to buy hybrid cars that don't even give good gas mileage.
Coffee was $6.00 for a Lb 2 years ago, it's doubled and now you get 12oz., All the other food packages shrunk too even a frozen pizza gets a little less sausage and peperoni and weighs less...
Then there's real food like steak, vegetables and Beer....
Energy prices are "Necessarily skyrocketing" and that will only get worse as we print more $$$ and start more crap in the Middle East...
Strange no Leftys seem to care about the fact that 0bama has been worse than Bush on civil liberties and he seems hell bent on starting another war in Iran...
Id actually respect you fools a little more if you came out against this crap, but I hear nothing but praise
WAKE UP!!!
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