Inflation Wave Coming

[stayput]

Breaking News from Newsmax.com

Money Magazine: Inflation Wave Coming

The latest issue of Money magazine is warning of a significant trend for the coming year — the Federal Reserve will reinflate the economy, spurring significant inflation.

In its “Investor Guide 2011,” the magazine identifies inflation as the top trend investors need to watch for in the new year.

“After listening to recent statements by the Fed, I’m convinced central bankers will reinflate this economy by any means necessary,” Pat Dorsey, director of equity research for Morningstar, writes in Money.

“Yet it’s hard to reinflate the economy just enough to get job creation going, but not so much that inflation remains perfectly in check. In fact, there are precisely zero historical examples of that kind of macroeconomic fine-tuning, which means the risk of the Fed overshooting is high.”

Dorsey isn’t alone in warning of looming inflation. Billionaire investor Warren Buffett said at last year’s shareholders meeting of his Berkshire Hathaway Inc. that “the prospects for significant inflation have increased.”

He said more recently that “a country that continuously expands its debt as a percentage of GDP and raises much of the money abroad to finance that, at some point, it’s going to inflate its way out of the burden of that debt.”

Other financial experts who see inflation on the horizon include Robert Wiedemer, co-author of the best-selling book “Aftershock,” who in 2006 predicted the economic meltdown, and Richard Rahn, chairman of the Institute for Global Economic Growth.

David Skarica, author of the new best-selling book “The Great Super Cycle: Profit from the Coming Inflation and Dollar Devaluation,” says that the Federal Reserve and other central banks are actively inflating their currencies to monetize staggering debt loads.

This, in turn, will lead to a significant dollar devaluation with the greenback set to devalue by as much as 50 percent during the next few years, Skarica says.

[Deleted]

Where's the "well, duh" emo? Anyone who has kept up with the economy or for that matter gone shopping recently knows this is already happening.

Why is it that a lot of people can see this trend and hear it from so many different sources yet still deny the train coming down the track?

[handyman2]

StayPut: You are just full of good news EH. I have been reading many of the money blogs to see which way to go on a business I own and the general consensus is much as you describe. This very well may not help the job market though. Unfortunately the little guy has no influnce about it. Makes the small business wary about any growth.

[burnsattornincan]

What ever do you mean Mr. Stay Put? The government says inflation is only around 2.5% and that includes food as well. We pay them good money to calculate these numbers correctly so it must be true what they say.

[Deleted]

Jan 5, 2011 15:34:27 GMT -5 burnsattornincan said:

What ever do you mean Mr. Stay Put? The government says inflation is only around 2.5% and that includes food as well. We pay them good money to calculate these numbers correctly so it must be true what they say.

You still believe in Santa & the tooth fairy, too?

[floridayankee]

“Yet it’s hard to reinflate the economy just enough to get job creation going, but not so much that inflation remains perfectly in check. In fact, there are precisely zero historical examples of that kind of macroeconomic fine-tuning, which means the risk of the Fed overshooting is high.”

Is this their way of saying they're doubling (tripling) down on QE?

[deziloooooo]

Tosays paper in finance section, definitly gas in many states, end of year..over $4 per and naturally all other items that have any dalings with energy costs, wwhat doesn't will be going up too, even suggested in a while..year or two, over $5 though many doubt that..expect back below $3 per but once travel season comes in, watch out.
Inflation, absolutly. China's demand for energy going through the roof...profits oil companys also increasing , BP even after the 39 Bil;lion set aside for famages, will be over 20 billion.
Have a thought...wait say 10 years, then sell our reserves that are in those caverns in Louisianna or where ever , market price of course, pay off the debt??? do we have enough? Google coming up.

[deziloooooo]

well here it is and in reading it, I see China is starting to do the same or planning to , over what Japans reserves are , so that demand will push prices up...so say oil goes to oh $140 per barrell then we sell , how much is that-------------------------------------------------------------------------------------------------

This article refers to the United States Strategic Petroleum Reserve. For other countries see global strategic petroleum reserves
The Strategic Petroleum Reserve (SPR) is an emergency fuel store of oil maintained by the United States Department of Energy.

The US SPR is the largest emergency supply in the world with the current capacity to hold up to 727 million barrels (115,600,000 m3). The second largest emergency supply of oil is Japan's with a 2010 reported capacity of 583 million barrels (92,700,000 m3). Also, China has begun construction and planning for an expansion of a SPR that will place their SPR at 685,000,000 barrels (108,900,000 m3) by 2020, surpassing Japan.

The current inventory is displayed on the SPR's website. As of August 31, 2009, the current inventory was 724 million barrels (115,100,000 m3). This equates to 34 days of oil at current daily US consumption levels of 21 million barrels a day. At current market prices ($65 a barrel as of Oct '08) the SPR holds over $34.3 billion in sweet crude and approximately $51.2 billion in sour crude (assuming a $15/barrel discount for sulfur content). The total value of the crude in the SPR is approximately $85.5 billion USD. The price paid for the oil is $20.1 billion (an average of $28.42 per barrel).[1]

Purchases of crude oil resumed in January 2009 using revenues available from the 2005 Hurricane Katrina emergency sale. The DOE purchased 10,700,000 barrels (1,700,000 m3) at a cost of $553 million.[2]

The United States started the petroleum reserve in 1975 after oil supplies were cut off during the 1973-74 oil embargo, to mitigate future temporary supply disruptions. According to the World Factbook[3], the United States imports a net 12 million barrels (1,900,000 m3) of oil a day (MMbd), so the SPR holds about a 58-day supply. However, the maximum total withdrawal capability from the SPR is only 4.4 million barrels (700,000 m3) per day, making it a 160 + day supply.
------------------------------------------------------
You all realize I was just joshing bout this selling of , don't you? Don't you?...Hey, just kidding guys/gal...kidding, kidding, joshing...lordy they think I was seriouse...

[hamsterwheel]

I still think we're going to see deflation in certain areas (electronics, housing, clothing), while increases are observed with generally any other commodity (oil, food, etc). If you can't get any return in terms of savings, commodities and or gold or silver are the way to go considering what the U.S. is doing to its currency.

[Deleted]

Jan 6, 2011 3:26:24 GMT -5 Ratchets said:

Inflation seems logical to me, considering the laws of supply and demand - more dollars being printed so each one is worth less.

So what are typically good things to invest in during periods of massive inflation? I'm assuming assets that you can hold in your hand (or touch) like rental property, farmland, antiques, precious metals, etc...is that a good assumption?

Don't forget the sparkly precious gemstones! Food (chocolate, sugar), regularly used consumables (ie toiletries, toilet paper, feminine products) and guns and ammo!

[burnsattornincan]

Yes Ms. RoseGarden and Mr. ratchets. As the great fiscan would say;

< Guns and plenty of ammo!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! >

[sanityjones]

Machine guns are a great investment as well.

[Deleted]

Jan 6, 2011 12:50:04 GMT -5 Ratchets said:

I know you meant your post in jest.

Actually, I wasn't trying to be cute (just that way naturally ). I was serious. About everything I said! However most of the items I listed would be classified as short-term investments vs. long.

Have you done the math of on some of these inflation predictions? It would seem a no brainer to buy some of the stuff you use on a daily basis now to keep from having to buy it later at the inflated prices - when your money could go towards other things you need. Do you have any idea how much a woman would pay (or do) for chocolate & tampons once a month? I don't know if there have been actual studies or reports on this, but as a woman, I can tell you that it would be a LOT!

[deziloooooo]

"Edit: Took me awhile to find somebody who actually had authentic pre-1900 colt revolvers for sale"
-------------------------------------------------------------------------------------------------
For those interested in those, the museum , "Athenium"..in Hartford , Connecticut..was given the "Colt " firearm collection and had it on display for years..not sure if still on display, been a while since been there, but it was impressive and think they had all of their models, those that were produced as well as experimental ones..they tried rifles too ,,besides the modern military ines..you night want to google the" Athenium "site
they may have mention of or even pictures of..

Is it true, if a weapon has never been fired, especially collectibles, they are worth more??

[sanityjones]

Any machine gun is a good investment. I'm not talking demilled memorabilia, rather Class Three NFA registered weapons. The supply is limited, highly regulated, and expensive..............fun as heck too, LOL. Investments in this category can be very lucrative as well.

[deziloooooo]

www.wadsworthatheneum.org/shop/item.php?cat=120&item=1127

[handyman2]

Rachets: There areat least 6 that I know of mostly southern states. You must get a federal license and in some states a state license through the local sheriffs department.
For all general purposes a full auto weapon is of little value except in a war or mowing the grass. But having one is an ego builder I guess. A semi-auto weapon is easier to control and shoot with accuracy at a given target. Full auto's are great powder burners and in most cases expensive to buy and shoot.

[handyman2]

Rachets: where did you come up with the 1986 rule. Do you have a link. There are modern fully auto weapons listed on the net and you can buy them with a federal license.

[burnsattornincan]

Actually, I wasn't trying to be cute (just that way naturally

In that case Ms. RoseGarden, do not hesitate to contact me with any inquiries concerning law or any other subject of your choosing. Of course, efforts on my part would be pro bone.

Dalton McGuinty Burns III

[Deleted]

I'll have to let dh know of your generous offer! Do you handle divorces in the US?

[burnsattornincan]

Do you handle divorces in the US?

Only if I had a hand in creating them. I will inform you when my next visit to the US is scheduled.

< You can roll the dice or roll in the hay. The latter requires calling me first. >

canattorneyyou

[sanityjones]

ratchets, In times past I have collected (invested) in class three weaponry. I have been out of the loop for a few years but to my knowledge there have been no new rulings or laws passed which have changed the process of ownership. These items may be obtained by contacting a class three dealer in your own state. This dealer will help you with the necessary paper work, tax stamp, etc. The tax stamp is $200/weapon, destructive device, or sound suppressor. The weapons vary in price anywhere form a few thousand to sixty thousand or so dollars. There is another license available through the BATF called the curio and relics license which allows for the collecting of many types of historic wartime weapons as well. Hope this helps.

www.gun-shots.net/class-three-iii-firearm-gun-dealers.shtml
www.google.com/url?sa=t&source=web&cd=2&ved=0CCYQFjAB&url=http%3A%2F%2Fwww.atf.gov%2Ffirearms%2Fnfa%2F&ei=BCgmTfaqIouisQOft-THAQ&usg=AFQjCNEIShV_JQBaoCyk3QTt7Obu64Dvrg
www.google.com/url?sa=t&source=web&cd=5&ved=0CDsQFjAE&url=http%3A%2F%2Fwww.nfafirearms.com%2FOwnership.html&ei=BCgmTfaqIouisQOft-THAQ&usg=AFQjCNFIoUFLG4iaU2d9KhQ0TXetHG1rAw

last but not least............
machinegunshoot.com/machine_gun_shoot.html

[Deleted]

Jan 6, 2011 14:43:54 GMT -5 burnsattornincan said:

Do you handle divorces in the US?

Only if I had a hand in creating them. I will inform you when my next visit to the US is scheduled.

< You can roll the dice or roll in the hay. The latter requires calling me first. >

canattorneyyou

hmmmm... well, the girls over on EE were just saying how uncomfortable and itchy it is in the hay, so I'll pass. But I'll let you know if I change my mind

[burnsattornincan]

Always on standby dear Ms. RoseGarden.

< Think marriage and promiscuity don't belong in the same sentence? Lets have a chat. >

canattorneyyou

[handyman2]

When in knob creek you want to keep hearing protection on at all times it can get noisey. If you want to buy something it is the place to go. Just don't expect to get much sleep if you stay at the campground.

[Deleted]

Inflation is COMING??? I don't care WHAT they say-- has anyone bought anything lately?? Along with those ever increasing utility bills (taxes on this and that)-- we are surely paying out a whole lot more than we used to-- and many of us are taking in a whole lot less than we used to. COMING??? Nothing will surprise me now. Nothing.

[deziloooooo]

I know inflation is here , very easily. I am retired..I get my Social, a couple of small pensions.{I might have to explain that to some of the younger posters but it's something that once was very normal to have if one worked long enough with certain companies and a disability from the government}
I use to be able to live very nicely on that , not having to touch the stuff buried on the golf course that my place is on..Now, and no big expenditures for trips, {done that}, toys, {got em all}..but now I am having to think that possible I might have to go out some night when no one is around with my little entrenching tool and do some digging. Have to get into those secret places because , it's getting tight and for those who aren't as fortunate as my self..it's got to be getting to the serious time.
Gas will be up over $4 per probably by next year and naturally all those things that energy costs affect, which seems everything..they too will and are rising. Anyone checked the coffee prices, milk, bread, eggs prices lately, and those are the give aways, the loss leaders to get you in the store.

[traelin0]

Jan 5, 2011 14:27:05 GMT -5 @stayput said:

Breaking News from Newsmax.com

Money Magazine: Inflation Wave Coming

Breaking news for whom? I predicted this outcome 2.5 years ago, once the bailouts started. Devalue the currency and you end up with higher prices in the things that matter. So Friedman was a little off with his 18 month lag time for a delta in the money supply to flood into prices...no biggie, the outcome is baked in the cake.

The (price) inflation we will eventually get will make the Nixon/Carter years look like a walk in the park. Oh well, those who have planned will do fine. Those who look to the govt. to be smart with the money supply, well...

[deziloooooo]

There are a lot of reasons for inflation..one being supply and demand ..and thats a biggie.
You have us useing all that product, energy because it's us, tiny part if the whole useing so much..then you have India, Peoples Republic, all those rising far east countries with all those people.
All of a sudden not working and riding to work on bicycles anymore, but owning all those cars and actually wanting our energy and buying like crazy as much as they can ....and naturally the price keeps on a rising...who do they think they are, how dare they, that stuff belongs to us , doesn't it?

[traelin0]

en.wikipedia.org/wiki/Cost-push_inflation

en.wikipedia.org/wiki/Depreciation_(currency)

It's almost entirely about supply and demand...of the dollar. When one goes to the grocery store to buy a candy bar, he is in essence selling dollars and buying a candy bar, since it's not backed by anything but govt. promises. The clerk is buying dollars and selling candy bars. When the supply of dollars increases, the demand for it decreases and it takes more of them to buy that candy bar. Money is the ultimate subject of supply and demand.

Our upcoming inflation is almost entirely caused by mismanagement of the supply of the currency. Which, to Austrians, is obvious, because only the free markets can determine what should be used as money.