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inflation and 99 years of the Feds policies

bronco2078bronco2078 Posts: 10,225 ✭✭✭✭✭
in Precious Metals

There is a nice graph in this article over at zerohedge showing inflation over the last 800 years .


A nice little ski slope with 2012 at the top , you wouldn't think it could get much steeper from here

black diamond run

Comments

  • derrybderryb Posts: 36,824 ✭✭✭✭✭
    check your link

    Correct link?

    "Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey

  • bronco2078bronco2078 Posts: 10,225 ✭✭✭✭✭


    Thanks derry, I don't how that other link got there i never even visited that pageimage

    I don't know whats going on around here put I can't preview a post anymore to test the links
  • derrybderryb Posts: 36,824 ✭✭✭✭✭
    preview has been out of order for me for a while now. Go to edit mode to see your OP link and you will probably see the problem. First part displayed is your text, second part is actual http address.

    "Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey

  • cohodkcohodk Posts: 19,129 ✭✭✭✭✭


    << <i>There is a nice graph in this article over at zerohedge showing inflation over the last 800 years .


    A nice little ski slope with 2012 at the top , you wouldn't think it could get much steeper from here

    black diamond run >>




    I've been saying that for years. The greatest bubble humankind has ever seen is the inflation bubble. What happens to PMs when it pops?

    Excuses are tools of the ignorant

    Knowledge is the enemy of fear

  • derrybderryb Posts: 36,824 ✭✭✭✭✭


    << <i>

    << <i>There is a nice graph in this article over at zerohedge showing inflation over the last 800 years .


    A nice little ski slope with 2012 at the top , you wouldn't think it could get much steeper from here

    black diamond run >>




    I've been saying that for years. The greatest bubble humankind has ever seen is the inflation bubble. What happens to PMs when it pops? >>


    It won't be allowed to pop - it ensures soverign debt and future government obligations are paid with cheaper money. Unfortunately it also ensures retirements and savings are worth less down the road.

    "Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey

  • cohodkcohodk Posts: 19,129 ✭✭✭✭✭
    Oh, it WILL pop. ALL bubbles pop. Sometimes the thin film holding it together is very elastic, but they ALWAYS pop. Always.
    Excuses are tools of the ignorant

    Knowledge is the enemy of fear

  • ebaytraderebaytrader Posts: 3,312 ✭✭✭


    << <i>Spot the point in this 803 year timeline of world inflation, when the Fed was created. >>



    The Fed is responsible for the inflation of the World? image
  • tneigtneig Posts: 1,505 ✭✭✭


    << <i> Unfortunately it also ensures retirements and savings are worth less down the road. >>



    Indeed. This goes more unnoticed as a silent killer. There are fewer with pensions everyday, and those pensions are only as good as the institution supplying the funds, and the funds are only as valuable as the dollar. On top of that much less folks have, and will have pensions. So many more will be relying mostly on SS. Many are $$ unprepared and I assume that number is growing.
    COA
  • jmski52jmski52 Posts: 22,850 ✭✭✭✭✭
    The greatest bubble humankind has ever seen is the inflation bubble. What happens to PMs when it pops?

    But, but - Bernanke promised that he wouldn't let that happen!

    Think about it this way - if the government can't pay it's employees, then it will act in its own self-interest. <<Insert your own scenario here>>
    Q: Are You Printing Money? Bernanke: Not Literally

    I knew it would happen.
  • yellowkidyellowkid Posts: 5,486 ✭
    I think it was Lenin who said that the "debauching" of a currency, intended or not, is the easiest way to overthrow an existing order.
  • cohodkcohodk Posts: 19,129 ✭✭✭✭✭


    << <i>The greatest bubble humankind has ever seen is the inflation bubble. What happens to PMs when it pops?

    But, but - Bernanke promised that he wouldn't let that happen!

    Think about it this way - if the government can't pay it's employees, then it will act in its own self-interest. <<Insert your own scenario here>> >>




    You didnt answer my question.image
    Excuses are tools of the ignorant

    Knowledge is the enemy of fear

  • guitarwesguitarwes Posts: 9,266 ✭✭✭


    << <i>I've been saying that for years. The greatest bubble humankind has ever seen is the inflation bubble. What happens to PMs when it pops? >>



    Food, gas, and pm's will increase. I will be able to pay my cheap low APR mortgage with inflated pieces of paper all the while selling my pm's to be able keep up with the payments because my income raises hasn't kept up with inflation.

    @ Elite CNC Routing & Woodworks on Facebook. Check out my work.
    Too many positive BST transactions with too many members to list.
  • cohodkcohodk Posts: 19,129 ✭✭✭✭✭


    << <i>

    << <i>I've been saying that for years. The greatest bubble humankind has ever seen is the inflation bubble. What happens to PMs when it pops? >>



    Food, gas, and pm's will increase. I will be able to pay my cheap low APR mortgage with inflated pieces of paper all the while selling my pm's to be able keep up with the payments because my income raises hasn't kept up with inflation. >>




    This is EXACTLY opposite of what I was thinking.
    Excuses are tools of the ignorant

    Knowledge is the enemy of fear

  • roadrunnerroadrunner Posts: 28,303 ✭✭✭✭✭
    The greatest bubble ever created is the TBond/otc interest rate contract bubble. When that bursts, PM's will increase their purchasing power over papered assets regardless
    of where the pog ends up.
    Barbarous Relic No More, LSCC -GoldSeek--shadow stats--SafeHaven--321gold
  • derrybderryb Posts: 36,824 ✭✭✭✭✭
    "Because the Fed has kept interest rates too low for too long, Americans have saved too little and borrowed too much; consumed too much and produced too little; and imported too much and exported too little. Too much of our labor is devoted to the service sectors and not enough to goods production. Too much capital goes to Wall Street speculators and not enough to Main Street entrepreneurs. We built too many homes but not enough factories. We have developed too many shopping centers, and not enough natural resources. The list of Fed induced misallocations goes on."

    "Fed intervention short-circuits the market driven process that resolves misallocations. The more stimulus that is provided, the harder market forces must work to try to restore equilibrium. As the misallocations grow over time, the efficacy of monetary measures diminishes."

    Schiff's insightful opinion on FED policies

    "Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey

  • derrybderryb Posts: 36,824 ✭✭✭✭✭


    << <i>The greatest bubble ever created is the TBond/otc interest rate contract bubble. When that bursts, PM's will increase their purchasing power over papered assets regardless
    of where the pog ends up. >>


    BINGO, we have a winner.

    "Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey

  • cohodkcohodk Posts: 19,129 ✭✭✭✭✭


    << <i>

    << <i>The greatest bubble ever created is the TBond/otc interest rate contract bubble. When that bursts, PM's will increase their purchasing power over papered assets regardless
    of where the pog ends up. >>


    BINGO, we have a winner. >>




    So we have a massive parabolic inflationary spike? That lasts how long? Then what?
    Excuses are tools of the ignorant

    Knowledge is the enemy of fear

  • bronco2078bronco2078 Posts: 10,225 ✭✭✭✭✭


    A gold backed renminbi as the worlds reserve currency and a fiat dollar pegged loosely to it?
  • guitarwesguitarwes Posts: 9,266 ✭✭✭


    << <i>

    << <i>

    << <i>I've been saying that for years. The greatest bubble humankind has ever seen is the inflation bubble. What happens to PMs when it pops? >>



    Food, gas, and pm's will increase. I will be able to pay my cheap low APR mortgage with inflated pieces of paper all the while selling my pm's to be able keep up with the payments because my income raises hasn't kept up with inflation. >>




    This is EXACTLY opposite of what I was thinking. >>




    I always like to be opposite. Why go with the flow? The swim is more exciting.
    @ Elite CNC Routing & Woodworks on Facebook. Check out my work.
    Too many positive BST transactions with too many members to list.
  • derrybderryb Posts: 36,824 ✭✭✭✭✭
    An interesting way to look at the FED

    "Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey

  • BaleyBaley Posts: 22,660 ✭✭✭✭✭
    good post

    Liberty: Parent of Science & Industry

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