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Thread: are you ready for economy crash ?

  1. #1
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    are you ready for economy crash ?

    coming soon......stock market crash....housing crash.......inflation........

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    Quote Originally Posted by onus View Post
    coming soon......stock market crash....housing crash.......inflation........
    How do you, @nus, measure inflation to deny that the US$ is already horribly inflated ("coming soon ... inflation")?

    In 1973 a top of the line Porsche sold for <$20K, burned fuel 1/4 as expensive as today, ran on fancy tires that cost the same as everyday tires now.

    But, yes, I am as prepared as I can be. Debt free home owner in a traditionally self-sufficient community culture congregation on an isolated Island.
    I am responsible for my writing, not your understanding of it.

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    Quote Originally Posted by Nightmare View Post
    How do you, @nus, measure inflation to deny that the US$ is already horribly inflated ("coming soon ... inflation")?

    In 1973 a top of the line Porsche sold for <$20K, burned fuel 1/4 as expensive as today, ran on fancy tires that cost the same as everyday tires now.

    But, yes, I am as prepared as I can be. Debt free home owner in a traditionally self-sufficient community culture congregation on an isolated Island.
    I'm thinking specifically interest rates. if they go up the economy will crash. rates have been kept low through complete government manipulation and I don't know how much longer that can last.

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    Quote Originally Posted by onus View Post
    I'm thinking specifically interest rates. if they go up the economy will crash. rates have been kept low through complete government manipulation and I don't know how much longer that can last.
    That would be savings interest rates. You cannot get rich - or even retire - by saving money, it must be invested. When we did our federal taxes last, we observed that our ROI is about 6%.
    I am responsible for my writing, not your understanding of it.

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    inflation has been here for 5 years.............

    or more already. It's just that the government changed the way they calculate it a while back to exclude food and oil, so they say we don't have any inflation. Think about how much your weekly groceries and tank full of gas cost now as compared to even 5 years ago and you can't deny it. The reason we dont' have inflation is because the fed's mortgage loan underwriting standards are so tight that most people can't qualify to get a mortgage at a reasonable rate. That's why so many people are renting now instead of buying and there has been so little inflation in home prices, because the government has made it very difficult for the average person to buy. And when you can't write mortgage loans houses don't' sell, and when houses don't sell, home prices are stable or decline and there is no inflation. It's all government manipulation. The end will happen when the rest of the world economy shifts away from settling commercial transactions in US dollars. When the dollar is no longer the "gold standard" of world currencies, we'll be rocked with inflation because we won't be able to deal with our foreign debt to China. We'll print more money to try to deal with it but that will just fuel more inflation. IT's coming, just be prepared.

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    Quote Originally Posted by RK3369 View Post
    [ ... ]The reason we dont' have inflation is because the fed's mortgage loan underwriting standards are so tight that most people can't qualify to get a mortgage at a reasonable rate.[ ... ]
    GeeZeus! Think for yourself, don't let the government 'figure' for you. Figures can lie and liars figure.
    Last edited by Nightmare; 05-15-2014 at 05:15 PM.
    I am responsible for my writing, not your understanding of it.

  7. #7
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    Inflation is a result of over regulation.....in this country.
    "I would rather be exposed to the inconveniences attending too much liberty than to those attending too small a degree of it." - Thomas Jefferson.

    "Better that ten guilty persons escape, than that one innocent suffer" - English jurist William Blackstone.
    It is AFAIK original to me. Compromise is failure on the installment plan, particularly when dealing with so intractable an opponent as ignorance. - Nightmare

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    I should have said.............

    Quote Originally Posted by Nightmare View Post
    GeeZeus! Think for yourself, don't let the government 'figure' for you. Figures can lie and liars figure.
    the reason we don't have "higher" inflation than we do is because of the underwriting standards. Lower standards allow more people to qualify for loans, which puts upwards pressure on the price of a limited supply of homes due to more buyers being in the market place, which fuels inflation. Plus lower qualification standards causes rates to increase based on the higher credit risk of the borrowers who now qualify, leading to more inflation.

    Guess I was not specific enough in my statement, although inflation is and has been here. But it can and will be much worse if the government ever lets up on allowing people to obtain financing for housing.

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    Interest rates needto go up. The artificial low interest rates and the printing of "money" is the cause of the bubble that will burst.
    I am not anti Cop I am just pro Citizen.

    U.S. v. Minker, 350 US 179, at page 187
    "Because of what appears to be a lawful command on the surface, many citizens, because
    of their respect for what only appears to be a law, are cunningly coerced into waiving their
    rights, due to ignorance." (Paraphrased)

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