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Inflation on the rise? Market says not so much

Well I understand that. I'm not that convienced either that the ponzi scheme that we call the stock market is the smartest way to invest ones savings either. I have a very small IRA account that is in stocks, but thats all.

Most of my savings is invested in my business. the commercial property that I operate my business out of (I also have a little rental income attached to that), my manufacturing equipment and inventory, etc. If one doesn't have the stomach to invest in the stock market, then maybe investing in commercial real estate (please buy after prices have declined, not after they have reached record levels), or rental houses, or in your own business is in order.

Now if you can't tollerate risk at all, then maybe the bank is your best place to put your savings, you just have to accept the fact that in exchange for relative saftey, you will pay the price of inflation. Oh, and you do realize that when you put money in a bank account, your are effectively loaning it to the bank don't you? thats why they pay you interest on your savings account. don't you have some sort of religious thing against loaning money?

Well, it's either that, or I keep it under the mattress.


Now, me, I have bonds. Great move, right, lol?

But most of my money gets invested in my house. New England property values are STILL stupif high, and I don't see that changing anytime soon.

But for the rest of america? By your own admission, it's start your own business to invest in, or join the ponzi scheme that is the stock market...or be stupid, and put it in a bank.

Again, listen to how that sounds. You see no problems here?
 
The rich do own hard assets, but they also tend to have much more in cash more near cash type investments than the poor do. The poor don't have any money to deflate, thats why they are poor.

Wages tend to increase at about the same rate that inflation does. During high inflationary times, like the early '80's, wages increase much faster than during low inflationary times, like today.

The only two groups of people who are significantly harmed by inflation are people and businesses that lend their own money, or fail to invest their money into hard assets . Thats part of the rationel of targeting a three percent inflation rate. It tends to motivate people into either spending their money now, creating demand, or investing their money productively, creating capital for production expansion. Put the two together, increasing demand and increasing business investment - and ya got a forumula for a good economy.

"The poor" was a poor choice of words. Clearly the poor have no money to inflate. The middle class is what really suffers from inflation. The rich can hedge their wealth with gold, real estate, and other hard assets.
 
Never heard of forced retirement? Once you hit "the age" a company to do with you as they please. And try getting a job at 65.

So, yeah...they had to cash out. it was cash out, or foreclose. My dad finally found another job. Bagging groceries. He was an accomplished machinist for over 30 years. So you don't get to talk to me about the merits of "investing". Sorry. It is, always has been, and always will be...a slot machine.

Many people open their own business when they retire. And I don't believe that there is any requirement for one to suddenly cash out his 401k when one retires, most of the time it is done gradually over many years. Did he not qualify for social security? And why the heck does he still have a mortgage at age 65?
 
"The poor" was a poor choice of words. Clearly the poor have no money to inflate. The middle class is what really suffers from inflation. The rich can hedge their wealth with gold, real estate, and other hard assets.

The middle class don't have much money either, most of the time whatever money they do have is in their IRA or 401K and is already invested in something, of course they can also hedge investments with gold, real estate, etc.
 
The middle class don't have much money either, most of the time whatever money they do have is in their IRA or 401K and is already invested in something, of course they can also hedge investments with gold, real estate, etc.

Most middle class investors don't have the know how or money to hire someone with the know how to effectively hedge. With 3% inflation a year, and even some of the best investments out there providing not much more than 3-5%, you're barely breaking even. CD's and everything less than 3% are offering a negative return. In the last 10 years we've lost about 30% of the value of the dollar primarily to inflation. If you had a retirement portfolio of 800k, you're looking at a 240k value loss.
 
Looking at the facts seems to upset your beliefs. :shrug:

I love facts. But you can continue to try and spin it if you wish. Though it might be easier for you to stop campaigning and start using facts.
 
I love facts. But you can continue to try and spin it if you wish. Though it might be easier for you to stop campaigning and start using facts.

So you claim, but I notice you still haven't addressed the fact that the dollar has not been devalued over the last five years.
 
So you claim, but I notice you still haven't addressed the fact that the dollar has not been devalued over the last five years.

As I have said in the past, it's not worth the time or effort to explain reality to you. KevinK has quickly learned that lesson as well it seems.
 
I have heard quite a few claims of near-future hyperinflation and economic collapse.

Also, inflation isn't inherently bad.

Yes, inflation is particularly good to the poor. It helps prevent them from eating too much.
 
One need only look at gas prices to see dollar devaluation.
 
Yes, inflation is particularly good to the poor. It helps prevent them from eating too much.

Well, it isn't so clear cut, inflation also erodes the value of debt, if only interest rates were kept lower this could be a great thing to the poor who by and large seem to be forced into being debtors by the system we have.
 
You can't have it both ways, Imagep. You can't sit by and talk of the "stupidity" of putting money in a bank, as opposed to starting one's own business, or investing in stocks....and THEN point out the "poor" decisions that led to someone filing bankruptcy....likely a result of getting wiped out in stocks, or having a business fail.

What's so wrong with simply putting money away into savings? That's why we have ****ing money in the first place. Because it DOESN'T spoil or go bad, or get eaten by pests. That's the entire god damn purpose of developing a currency, as opposed to dealing entirely in barter. Hanging onto 200K worth of corn, or oil, or some other asset that others readily value, is impractical....so, we invented an item to represent that 200K worth of wealth, which is valued equally by those you would trade with.

But this system doesn't work very well when you have to RISK your money just to be able to RETAIN it, and I point to the continual streams of market bursts and slumps, going all the way back to the early 1900's, as my evidence of this.

What is so ****ing wrong with just being able to sock away 10 grand, and 20 years later, having that 10 grand still be worth what it was when you socked it away?

The ONLY answer you can adequately supply for what's wrong with this is, it dispels the ILLUSION of growth, an illusion that is necessary to maintain faith in the idea that wealth is both created, and that it can be created in infinite amounts. That's all this is about. Without inflation, it looks less and less like growth, and more and more like redistribution, be it by government model, or my market model.
 
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