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THE Dow Jones Industrials (DJI) Thread (merged)
Re: Dow set for best September since 1939; hyperinflation?
by Pops » Mon 04 Oct 2010, 20:44:24
$this->bbcode_second_pass_quote('Cog', 'H')ow do you get hyperinflation with stagnant wages? My boss isn't going to magically give me a $10hr/pay raise just because gasoline and food prices have increased.
Hyperinflation needs a different name:
$this->bbcode_second_pass_quote('Upthread somewhere I', 'I')nflation is when the economy overheats...
Hyperinflation is the loss of faith in the currency.
I don't think we've ever seen hyperinflation in the US, plain old inflation is everyone wants more dollars, hyperinflation will be when no one wants them. I think if there comes a time the US$ is worth nothing, the S will truly have HTF.
The legitimate object of government, is to do for a community of people, whatever they need to have done, but can not do, at all, or can not, so well do, for themselves -- in their separate, and individual capacities.
-- Abraham Lincoln, Fragment on Government (July 1, 1854)
-- Abraham Lincoln, Fragment on Government (July 1, 1854)
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Re: Dow set for best September since 1939; hyperinflation?
by Revi » Mon 04 Oct 2010, 21:07:06
I think just regular inflation is going to hurt a lot of people.
We're back to the 70's with stagflation.
The price of everything goes up even though nobody's buying anything.
We're back to the 70's with stagflation.
The price of everything goes up even though nobody's buying anything.
Deep in the mud and slime of things, even there, something sings.
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Re: Dow set for best September since 1939; hyperinflation?
by Lore » Mon 04 Oct 2010, 21:33:17
$this->bbcode_second_pass_quote('Revi', 'I') think just regular inflation is going to hurt a lot of people.
We're back to the 70's with stagflation.
The price of everything goes up even though nobody's buying anything.
We're back to the 70's with stagflation.
The price of everything goes up even though nobody's buying anything.
Inflation for the last 12 months is still being held to around 1.1% year-over-year. During the volatile 70s some years were averaging over 10%. As they say, "we an't seen nothin yet"!
The things that will destroy America are prosperity-at-any-price, peace-at-any-price, safety-first instead of duty-first, the love of soft living, and the get-rich-quick theory of life.
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Re: Dow set for best September since 1939; hyperinflation?
by Pops » Mon 04 Oct 2010, 21:35:15
Revi, I think in the article I linked above (or the sequel) the guy was speculating the stagflation of the 70's might have been a touch of hyper-inflation - seems like being a little pregnant to me.
I guess I'm just hoping for a nice long period of adjustment and de-leveraging like Japan had after their bubble. We need a little attitude adjustment before reality hits the fan. Five or 10 years of moving in with the parents/kids, spending somewhere south of a thousand dollars on Christmas presents for the dog, perhaps even *gasp* putting a little money away for a rainy day...
I guess I'm just hoping for a nice long period of adjustment and de-leveraging like Japan had after their bubble. We need a little attitude adjustment before reality hits the fan. Five or 10 years of moving in with the parents/kids, spending somewhere south of a thousand dollars on Christmas presents for the dog, perhaps even *gasp* putting a little money away for a rainy day...
The legitimate object of government, is to do for a community of people, whatever they need to have done, but can not do, at all, or can not, so well do, for themselves -- in their separate, and individual capacities.
-- Abraham Lincoln, Fragment on Government (July 1, 1854)
-- Abraham Lincoln, Fragment on Government (July 1, 1854)
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Re: Dow set for best September since 1939; hyperinflation?
by Revi » Tue 05 Oct 2010, 16:19:40
Pops, that would be nice. Unfortunately silver is up over a buck today. That means that it's going up 5% per day. That has to ripple through the economy eventually. We'll end up with hyperinflation if the price of everything follows the price of commodities, which it surely will.
Deep in the mud and slime of things, even there, something sings.
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