[Arsenal]

$this->bbcode_second_pass_quote('pup55', '
')Now if you had bought gold at 276, you would be happier now with it at 1010....

and if you had some room to store a few barrels of crude oil, you would have gone from 28.03 to today's price of about 71.

Your house has probably done about the same as the Dow.

So I guess for this period, you would have been better off as an owner of "stuff" rather than financial assets, or real estate.

Wonder what will happen over the next 8 years?

[VZR1800]

$this->bbcode_second_pass_quote('PrestonSturges', 'I')'m going to plant a tree today. At least I can be sure THAT will grow.

[PrestonSturges]

$this->bbcode_second_pass_quote('VZR1800', '')$this->bbcode_second_pass_quote('PrestonSturges', 'I')'m going to plant a tree today. At least I can be sure THAT will grow.

[Sixstrings]

$this->bbcode_second_pass_quote('', 'D')ow set for best September since 1939

NEW YORK (CNNMoney.com) -- The summer has come to an end, and so has the market slump that came with it. With little on tap to challenge the recent rally, stocks are on track to close September with the biggest monthly gains in over a year.

Though September is typically down month on Wall Street and the economic recovery remains sluggish, investors have taken cues from recent upbeat economic news to propel major indexes sharply higher during the month after a sell-off in August.

(snip)

"We've been seeing modestly favorable economic numbers lately, which has allowed markets to keep moving up," said Stephen Carl, head equity trader at Williams Capital Group.
http://money.cnn.com/2010/09/21/markets/sunday_lookahead/index.htm

[Sixstrings]

And this from Zerohedge:

$this->bbcode_second_pass_quote('', '[')b]Why QE2 + QE Lite Mean The Fed Will Purchase Almost $3 Trillion In Treasurys And Set The Stage For The Monetary Endgame

We have conducted a rough analysis on how QE2 will reshape the Fed's balance sheet. We were stunned to realize that over the next 6 months the Fed may be the net buyer of nearly $3 trillion in Treasurys, an action which will likely set off a chain of events which could result in rates dropping all the way to zero, stocks surging, and gold (and other precious metals) going from current price levels to well in the 5 digit range.
http://www.zerohedge.com/article/why-qe2-qe-lite-may-mean-fed-will-purchase-almost-3-trillion-treasurys-and-set-stage-monetar

[Revi]

Oh crap, it's here.

I wonder if hyperinflation will hit next year.

Silver's already up 10% in the past few weeks.

That's got to ripple through the economy eventually.

I noticed that the price of oil is up about 10% as well, just as people are filling their oil tanks for winter.

I think the calm before the storm is over now. I can feel the wind stirring.

Any port in a storm.

[ritter]

So, if hyperinflation hits, you would want your little 401K nest egg in stock funds, not money market, right? I'm so confused...

(I'd moved it out of stocks and into money market about a year ago because I couldn't stand the ups/downs that were so detached from any coherent reason.

[Pops]

Don't listen to me about saving money, I don't, I buy long lasting things instead. "Things" are sort of like having a money market account in that you know you are losing money, it's just a matter of how fast.

In fact I think that's one of the telltale signs of hyperinflation - everyone stops saving money and buys things because things will be more valuable tomorrow and money less valuable.

The worst thing would be to owe on variable rate loans, the best would be to make variable rate loans - if you know a guy with a crooked nose named Guido, all the better.

[ritter]

I knew a crooked man who walked a crooked mile....

Can't put the 401k into anything tangible unless I quit or get laid off. Then there's the tax burden and penalties. Right now it's in money market so I don't lose it all in the next market crash as we may need it depending on whether or not the great state of California can hire back the teachers it laid off. Gotta love the new economy!

[Lore]

If hyperinflation hits, which has pretty good odds to do so at least by the end of next year, then any money held in equities will be essentially worthless. There will be a run on the treasury which will make government bonds the last place you want to be. So that leaves commodities as the only haven, which will create the vicious circle of hyperinflation as everyone runs to these assets and puts them up and out of sight.

I’m not even sure quality tangible goods will be worth much as a glut of just about everything will come onto the market as people try to sell their stuff for whatever just to pay for food and the winter's heating bill.

[gollum]

I've sure noticed metals way up, stocks up when they shouldn't be, and a lot of food items up too. I'm sure servere inflation is in the cards at some point in order to rid joe public and the government of the debt. Honestly in the long run a few years of pretty strong inflation probably helps 75% of people in this country get their debt to managable levels.

[americandream]

Recent industrial figures out of China and India have investors bullish. More risk appetite. Western central banks role is to of course keep consumer sentiment upbeat.

$this->bbcode_second_pass_quote('Sixstrings', '')$this->bbcode_second_pass_quote('', 'D')ow set for best September since 1939

NEW YORK (CNNMoney.com) -- The summer has come to an end, and so has the market slump that came with it. With little on tap to challenge the recent rally, stocks are on track to close September with the biggest monthly gains in over a year.

Though September is typically down month on Wall Street and the economic recovery remains sluggish, investors have taken cues from recent upbeat economic news to propel major indexes sharply higher during the month after a sell-off in August.

(snip)

"We've been seeing modestly favorable economic numbers lately, which has allowed markets to keep moving up," said Stephen Carl, head equity trader at Williams Capital Group.
http://money.cnn.com/2010/09/21/markets/sunday_lookahead/index.htm

[patience]

Deflation in large assets--houses, cars, and luxury items--the stuff you don't need/can't afford to buy now. Inflation in consumables--home and car maintenance items, food and energy--all the stuff you NEED regularly.

I am buying productive assets, like chickens, seed, fertilizer, energy producing items, and garden equipment. Not trying to produce things to sell, but rather, to USE.

More QE = more inflation = higher PM and commodity prices. Right up until the whole works hits the wall.

[americandream]

A good rule of thumb would be:

Locally produced essentials = Inflation;

Asian imports = deflation.

This will continue the outsourcing drive as investors in all sectors chase greater returns and anything capable of being outsourced is sent to low wage and cost zones, until the cost of shipping eclipses and then overtakes the cost savings.

$this->bbcode_second_pass_quote('patience', 'D')eflation in large assets--houses, cars, and luxury items--the stuff you don't need/can't afford to buy now. Inflation in consumables--home and car maintenance items, food and energy--all the stuff you NEED regularly.

I am buying productive assets, like chickens, seed, fertilizer, energy producing items, and garden equipment. Not trying to produce things to sell, but rather, to USE.

More QE = more inflation = higher PM and commodity prices. Right up until the whole works hits the wall.

[Cloud9]

I’m a gun collector. I really like the old stuff so, I visit the pawn shops quite regularly. This gives me a feel of the real economy in my area. The shops are full of guns. Really nice diamonds are coming in. Thousands and thousands of dollars are going out in pawn. Shop owners are beginning to worry that much of the stuff that is coming in is not going to be redeemed. They worry about being able to sell the stuff they are taking in. The price of pawned items is going to plummet when shop owners run out of cash. The bottom third here in central Florida is cash strapped.

What happens when grain and oil go through the roof?

[the48thronin]

$this->bbcode_second_pass_quote('Cloud9', '
')What happens when grain and oil go through the roof?

[Revi]

We had a little dip yesterday, but today they were right back at it. The inflation machine must have cranked up around noon today, because gold and silver were both up about a percent and the schlock market went up at least that much as well.

Happy days are here again.

[evilgenius]

You don't get hyperinflation without total loss of faith in a currency. The whole world will run into the dollar faster than those people did the other day when that US Navy ship was coming to their aid and they all went to one side so quickly that their boat capsized, if the money ship begins to list. That would be nothing like lack of faith. That would be a demonstration of faith. I would not give up on US Treasuries.

Yes, there can be big inflation, but it will most likely come in food and not fuel. Houses will probably become so cheap that a certain amount of food will get you a run down one. God help us if the US military loses an engagement while this is all going on. Now that would be a trigger for loss of faith in the currency.

[Sixstrings]

$this->bbcode_second_pass_quote('evilgenius', ' ')God help us if the US military loses an engagement while this is all going on.

[evilgenius]

$this->bbcode_second_pass_quote('Sixstrings', '')$this->bbcode_second_pass_quote('evilgenius', ' ')God help us if the US military loses an engagement while this is all going on.