Anybody else rethinking the direction of the economy and precious metals?

[riptrack44]

With the current leaders in DC printing and spending money like drunken sailors, inflation or worse, hyper-inflation is bound to happen. Historically, its happened elsewhere and it sure can happen here. Those of you old enough can remember a touch of it under Jimmy Carter. With the dollar devalued, the gubberment can pay its debts much cheaper. Trillion is becoming a very common word. Be afraid, very afraid.

 

[riptrack44]

With the current leaders in DC printing and spending money like drunken sailors, inflation or worse, hyper-inflation is bound to happen. Historically, its happened elsewhere and it sure can happen here. Those of you old enough can remember a touch of it under Jimmy Carter. With the dollar devalued, the gubberment can pay its debts much cheaper. Trillion is becoming a very common word. Be afraid, very afraid.

 

[HOUSTON RICK]

I would counsel everyone to stand by and be ready for years of hyper inflation due to the massive amounts of dollars now being printed every day.

 

[GatorFarmer]

If you're banking (pardon the pun) on hyper inflation, the *worst* thing that you could do is actually to pay off your bills and live debt free. The smart course of action - if one thinks this is what is going to happen - is to *maximize* your debt in terms of paper dollars owed in order to gather durable goods of a sort that would retain their value. Personally, I'd suggest "junk" gold and silver - chains, coins, rings, small amounts, non hybrid heirloom seeds, firearms and ammunition, and medical supplies.

Owe a million dollars? Not a problem when that is the going rate for a bag of turnips. Here, take two million, I have plenty of tinder already.... Hyper inflation really kills the guy who lived frugally and saves his money, but if you're a spendthrift who has huge bills, eh, you come out pretty good so long as you somehow have a means to bring in fresh money.

 

[mstuhr]

Howdy,
I don't dispute what Gatorfarmer says.
I don't know what he considers "Hyper inflation"
I do remember from the Carter era that along with inflation the interest rates went up and a person could do well investing in CD's and such. If I remember they just about matched the inflation rate. Those that were issued for longer periods of time paid well for years after things stabilized.
There have been quite a few things that I have expected to be like they were in prior hard times but I have been proven wrong on some of them so far.
For what it is worth from a dope who does not understand this. I think inflation is comming along with a rise in interest rates. I think these two things will drag the economy down further by slowing/stopping construction, home and auto buying and things are going to suck for five to ten years before bouncing back.
Hyper inflation to me means pre WWII Germany, some current African nations, giant inflation rates.
I don't expect that. I also claimed people pumping their own gas would not catch on in the late 60's when the first self serve station popped up.
I feel a little like Gilda Radner "It's always something!"
I cant wait to see whats next.
Thanks
Mike

 

[esterroid]

Unfortunately the government doesn't even have to run the presses these days. All those trillions that obama injected into the economy came into being as mere electrons after some knob at the Fed hit a button....

 

[Spotteddog]

Currently it's impossible for the little guy to be properly positioned. There are courses of action one can take to minimize the damage. But to avoid it completely? Doubtful.
The time to have had a percentage in metal's would have been about a year ago to have avoided as much damage as possible.
Imagine if you'd bought all the 08' and 09' 9 MM production, in 07'!

 

[ArcticFox]

If you're banking (pardon the pun) on hyper inflation, the *worst* thing that you could do is actually to pay off your bills and live debt free.

Being debt free gives peace of mind and, along with buying what you need and not as much of what you want means less adrenaline filled moments when paying bills. You have to add the interest and the stress to paying bills when banking on hyper-inflation.