Slugabed said:nyarrow said:As soon as ratings agencies get a whiff of this risk happening soon, they will cut the rating on treasuries, increasing the yields we must pay.
Chances of this happening...Zip.

The gov't carries a big stick on the rating agencies: since they were complicit in this credit implosion, the second one of the big three thinks about stripping the US of its AAA, you'll see nationalization in the guise of "government credit regulation to insure that derivatives and other leveraged products shall never again put the US financial system at such grave risk". The end.

Ratings agencies are international, and have to maintain (at least the semblance of) credibility. They could wait to lower the ratings until it is painfully obvious to everyone else around, but at some point they would have to...

Shandril said:echo4747 said:What about agricultural commodities? (wheat,corn,sugar,cotton etc.) Wouldn't these be a good in investment during periods of high inflation?

I was kinda thinking along the same line in terms of Staples. People will still need to food and that will track inflation pretty well. Even though there's been deflation lately, you don't see prices at the grocery store going down much.

Second is oil. Target by OPEC even outside of inflation and sinking dollar value is for about $100/barrel. At around $50/barrel now, I'd think that upside potential is pretty good compared to how much down further it can go. They'll have a meeting on Dec 17th and I'd be very surprised to not see further cuts in output to boost prices.

Someone mentioned I-bonds. I don't consider this viable due to restriction on amount you can buy. They have some deflation protection and obviously some inflation hedge but still if all you can buy is $10k/yr per person, it's not gonna do it for most people wanting serious asset protection.

Real estate, I'd say it's probably still too early. I don't know too many markets but in ours there are still plenty of houses available, many new ones sitting on the market for months so prices have nowhere to go but down until inventory decreases further. And since inflation is probably gonna be delayed by 6-18 months, no sense in buying right now. Now in a year or so, I think it'll likely be a very good option even if lenders are gonna require 20% down pretty consistently. Rates shouldn't be too high yet and prices would be close to bottom.

You are confusing inflation-linked savings bonds (limit) with TIPS (Treasury Inflation Linked Securities)... you can buy as many TIPS as you have cash/

tolamapS said:anakinskywalker said:this topic has been brought up two months ago in this post I made; very few seemed concerned about hyperinflation then.

Anakin

Well, there are two questions: the when and the how.

I think we won't see hyperinflation any time soon. As long as housing prices are going down, the bigger threat is that of deflation.

However, eventually everybody and their mother who went all-in into US treas, will decide to dump the treasuries, and inflation will begin. At that time, you dump dollars for hard assets like R/E, gold, oil, cars, etc.

Yes, that's what I said in the USD hyperinflation preparation thread I started two months ago: that hyperinflation would become a concern in a couple of years or so.

As more and more people wake up to the hyperinflation spectacle we're going to see more and more threads on this. Are we going to allow all these reposts to clog up FWF and fragment the discussions?

Moderators, wake up!

Anakin

anakinskywalker said:anakinskywalker said:this topic has been brought up two months ago in this post I made; very few seemed concerned about hyperinflation then.

Anakin

who is jcole21? What does he/she know about economics, and why has he/she redded my post pointing out that this thread is a repost of a hyperinflation preparation thread already in existence for almost two months?

Anakin

Discover the truth to these, as well as other pivotal q's, by subscribing to jcole21's newZletter.

H

wilesmt said: Land in this sense is not a townhome in a urban environment; its rural farm acreage.

That's why I stay away from condos. Buy duplexes or single family homes in urban environments with accessible rooftops. They provide space for solar panels, greenroofs (where you can harvest edible plants) and a water catchment system.

Bankgeek said:There's no way to predict the future. You should not put your money into any long term positions right now because there's too much uncertainty.

I recall in 1999 everyone was 'certain' that the stock market would keep going up.

I recall in 2004 everyone was 'certain' RE & Stocks would keep going up.

In a number of years I will recall how everyone was 'certain' in 2008 that everything was too much of a mess to take the risk of either.

In the meantime, I'm going full throttle into the animal poop market. I mean really, when you think about it, manure is not that bad a word.

jayK said:kamalktk said:tazzy531 said:Hyper inflation? I'm getting ready for Ludicrous Inflation!
You need a Helmet for that!The economy has gone to plaid!
Not to worry, Ben Bernanke and crew are combing the desert, looking for ways to save us.

blok said:buy real estateWhat planet?

Skinz said:I don't know how many companies could afford to give raises when their costs are simaltaneously rising and they are already strapped for cash.Inflation means that a company's costs are rising, but its prices are also rising, so there isn't as much of an impact on profitability as you might think outside of markets with high price elasticity of demand.