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Author Topic: Inflation Anyone?  (Read 632 times)

Solar

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Inflation Anyone?
« on: December 03, 2012, 12:04:54 PM »
Looking at treasury figures raised a few questions, and the answers I got were....well, simply shocking.
This article from May spelled it out the best, in a nutshell, were in for one Hell of a shock soon.
This is why I have been buying food, two years or more worth, regardless of inflation, I know I'll be able to eat.
Gold bullion in hand is still a good investment as well, will probably gain another $500. in the next couple of years.(IMO)
Well worth the read....



U.S. Treasury yields fell to an ominous all-time low on Wednesday, as fearful investors crammed, once again, into the perceived safety of U.S. government debt.  Rates on benchmark 10-years dropped to 1.6190%, on fears over a European implosion, a hard landing in China, and slowing momentum in the U.S.

This unprecedented fall should be an indication to investors that Treasuries have entered dangerous territory.  The overcrowded trade will face a reversal, which could cost investors dearly, even more than a possible Eurozone breakup.
http://www.forbes.com/sites/afontevecchia/2012/05/30/record-low-treasury-yields-a-harbinger-of-coming-bond-market-collapse/

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kramarat

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Re: Inflation Anyone?
« Reply #1 on: December 03, 2012, 01:06:50 PM »
They are busy building a very large and shaky house of cards.
Naturally, Obama is already reneging on his campaign promises of spending cuts. From the looks of it, he and his dem buddies are shooting for another 4 years of sky high spending and increased entitlements.

I don't know what's going to happen when things topple, but it's not going to be pretty.

One thing I do know, is that the government only has one source of real money............that's us. Anybody that's still working. :sad:
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Solar

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Re: Inflation Anyone?
« Reply #2 on: December 03, 2012, 01:38:00 PM »
The bigger question is why lend to someone that has no means of ever repaying their debt?

I have pondered this many times, and when placed relative to our defeating the USSR without firing a shot, I look at China taking the same strategy as we did.

What would happen if they cut us off tomorrow? Answer, is we would print money and the dollar would collapse in a year as well as our economy.
The Chinese have been positioning themselves to be the world currency, the only thing that is slowing them down is our ability to produce oil on private land, in turn keeping the dollar locked to the price of oil.

I hate to think what devious plan is underway to change the pinnacle of power in the world, what is in play that could unseat us?
I'm not saying China is in this alone, I think Russia is helping them with their own interests in mind.

Conspiracy? You betcha, but seems pretty obvious doesn't it?
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kramarat

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Re: Inflation Anyone?
« Reply #3 on: December 03, 2012, 02:12:33 PM »
Quote from: Solar on December 03, 2012, 01:38:00 PM
The bigger question is why lend to someone that has no means of ever repaying their debt?

I have pondered this many times, and when placed relative to our defeating the USSR without firing a shot, I look at China taking the same strategy as we did.

What would happen if they cut us off tomorrow? Answer, is we would print money and the dollar would collapse in a year as well as our economy.
The Chinese have been positioning themselves to be the world currency, the only thing that is slowing them down is our ability to produce oil on private land, in turn keeping the dollar locked to the price of oil.

I hate to think what devious plan is underway to change the pinnacle of power in the world, what is in play that could unseat us?
I'm not saying China is in this alone, I think Russia is helping them with their own interests in mind.

Conspiracy? You betcha, but seems pretty obvious doesn't it?


Well, the debt is all over the place. I almost wish that China held all of it and would cut us off from any more. It's not going to happen though. I don't know how much more they can borrow, but considering that Obama wants to eliminate the debt ceiling, they don't plan on stopping anytime soon. At some point, just the interest payments will be really hurting us..............as if they're not now. :rolleyes:

http://finance.yahoo.com/news/biggest-holders-of-us-gov-t-debt.html
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Solar

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Re: Inflation Anyone?
« Reply #4 on: December 03, 2012, 05:45:44 PM »
Quote from: kramarat on December 03, 2012, 02:12:33 PM
Well, the debt is all over the place. I almost wish that China held all of it and would cut us off from any more. It's not going to happen though. I don't know how much more they can borrow, but considering that Obama wants to eliminate the debt ceiling, they don't plan on stopping anytime soon. At some point, just the interest payments will be really hurting us..............as if they're not now. :rolleyes:

http://finance.yahoo.com/news/biggest-holders-of-us-gov-t-debt.html

Of course the outcome is beyond my comprehension as to what would happen, but looking at Greece, it's not all that bad for everyone, just Govt employees mostly.

Lets assume the dollar collapsed, the Govt would instantly have to lay off 10s of thousands of people, people that most likely couldn't make it in the private sector, which is why they got a Govt job in the first place.

Now granted, it would be pretty miserable for many, but I believe a majority of us would be just fine, maybe have to cut back and lose the ability to purchase certain products, but Hell, were spoiled as it is.

Of course this is the best case scenario, the worst case would be 50% unemployment and soup lines.
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walkstall

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Re: Inflation Anyone?
« Reply #5 on: December 03, 2012, 06:31:02 PM »
Quote from: Solar on December 03, 2012, 05:45:44 PM
Of course the outcome is beyond my comprehension as to what would happen, but looking at Greece, it's not all that bad for everyone, just Govt employees mostly.

Lets assume the dollar collapsed, the Govt would instantly have to lay off 10s of thousands of people, people that most likely couldn't make it in the private sector, which is why they got a Govt job in the first place.

Now granted, it would be pretty miserable for many, but I believe a majority of us would be just fine, maybe have to cut back and lose the ability to purchase certain products, but Hell, were spoiled as it is.

Of course this is the best case scenario, the worst case would be 50% unemployment and soup lines.


IF the "white radical, with a nice tan" keeps spending there will be no soup lines.
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A politician thinks of the next election. A statesman, of the next generation.- James Freeman Clarke

kramarat

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Re: Inflation Anyone?
« Reply #6 on: December 04, 2012, 03:06:08 AM »
Quote from: Solar on December 03, 2012, 05:45:44 PM
Of course the outcome is beyond my comprehension as to what would happen, but looking at Greece, it's not all that bad for everyone, just Govt employees mostly.

Lets assume the dollar collapsed, the Govt would instantly have to lay off 10s of thousands of people, people that most likely couldn't make it in the private sector, which is why they got a Govt job in the first place.

Now granted, it would be pretty miserable for many, but I believe a majority of us would be just fine, maybe have to cut back and lose the ability to purchase certain products, but Hell, were spoiled as it is.

Of course this is the best case scenario, the worst case would be 50% unemployment and soup lines.

The government could cut it's civilian workforce in half or more, and I wouldn't notice a thing.
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Solar

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Re: Inflation Anyone?
« Reply #7 on: December 04, 2012, 05:42:44 AM »
Quote from: kramarat on December 04, 2012, 03:06:08 AM
The government could cut it's civilian workforce in half or more, and I wouldn't notice a thing.
The only governmental entity where I would notice an issue, would be state govt, particularly DMV, and that's not such a bad thing.
Maybe the VA could be an issue, but with an overabundance of employees, tends to create bigger problems than it solves, so a shrinking of staff means less chance of error. :laugh:

Yep, cut the damn govt, I think we can all live without some agency trying to coerce states to curtail smoking, or promote homo art.
We'll survive.
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TowardLiberty

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Re: Inflation Anyone?
« Reply #8 on: December 04, 2012, 06:50:33 AM »
China has been a net seller of US debt for a bit.

The FED is the one buying up most of the debt with its QE-ternity program.
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Solar

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Re: Inflation Anyone?
« Reply #9 on: December 04, 2012, 07:17:34 AM »
Quote from: TowardLiberty on December 04, 2012, 06:50:33 AM
China has been a net seller of US debt for a bit.

The FED is the one buying up most of the debt with its QE-ternity program.

Actually China is not buying as much debt, so they really are not considered divesting of interest, they are still the top securities holder.

Which in truth means nothing, we buy our own debt with printed money, and what does that do to it's value?
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