kingblaze84;4184917 said:
sionb55;4183627 said:
kingblaze84;4182772 said:
sionb55;4181499 said:
No surprise here, after the stimulus' they had to enact to save the country, it was likely to happen. Im not sure this is what we should be worrying about tho - shit deflation may pose a greater threat once the Americans start deleveraging their massive debt to other countries.
Oh and another interesting point, this is why I tell ppl to invest in mostly stocks and global stocks and NOT in shit like gold, or useless other stuff (and to some extent not to invest in some bonds). Stocks are portions of a co. when a co. learns that inflation is eating away at profits they adjust and outpace it to grow (history proves this), and at this point u should be looking to invest in the stocks of other currencies if you can - over 65 years a USD could buy u a ton of shit at the grocery store (remember wen ur parents said that a quarter could get them a weeks worth of groceries ?) but now a dollar wont get u shit, the dollar has been on a decline since the mid 40s and I believe it will continue to do so in the long run. That doesnt mean that the US dollar will be worthless but it will be worth much less down the road - that can have good and bad implications, good being that manufacturing could get cheaper and foreigners that are growing their economies can buy more US goods.
You guys might want to look into buying Canadian and yes European stocks of strong companies. The Canadian Dollar, and the Euro will in the long term be worth more than the USD. Shit they already are now.
Good post, I agree but damn the poor and desperate are really gonna have it bad sooner than later. Inflation has its benefits but there are much more serious drawbacks in the long run. Apartments and mortgages used to be about 300 or 400 a month, something any working person could afford back in the day. Now it's tough to even find apartments below a G a month. The dollar isn't worthless but it's downright depressing to realize it will be worth even LESS in the future. America's future isn't very bright in my opinion. Wages aren't increasing much while groceries and gas are....what a country. 16 trillion in debt with no relief in sight = disaster and chaos for the future.
Well rents are up right now b/c the housing market is in a recession, thats just part of the business cycle in real estate (in down times rents soar and it up times they stabilize and are usually lower) - the rents will subside in the near term tho. But if u buy a home now at these rates w/ a decent downpayment its not hard to find a mortgage around 300-400 a month (unless u live in NY, LA or areas of Chicago or Connecticut but places like Texas, NC/SC, Florida, Nevada, the mid west u can find that no problem). However, u gotta understand that America is a 15 trillion dollar economy and although they have a bright future ahead of them the next generation is not going to be as wealthy as the last. And unfortunately with the dollar that just happens to be a drawback of having such a huge economy. Eventually ppl will adapt as they did after the Great Depression and after the 50s. The Americans will eventually deleverage that most that debt and probably sell most of it to other countries (like China, Japan and Europe w/ Japan probably getting the bad debt SMH LOLOL).
Remember that with debt u dont want to pay all that off - the only 2 times in American history that the U.S. paid off ALL their debts they went into a depression not long after (the one of 1837 under Jackson and then there was the 1920s). Debt is not necessarily a bad thing , the most important factor is the affordability of that debt and today its actually at the lowest its ever been in history. A weaker dollar could help the U.S. in a big way. Most ppl dont even realize that the dollar has been on the decline over the last 65 years LOLOLOL despite the U.S. growing the way it did.
The attitude of today seems to be - "well dont worry our kids 'kids kids' will take over of our problems" and its true - the next generation the 90s & 2000s babies are gonna pay the price for the generation before them hence why they wont be as wealthy as the last. I guess on the brightside tho, other countries outside of America will grow and theyll get a chance, everything wont be entirely concentrated in or around the U.S.
Interesting post, you have some solid points about cost of living being cheaper in other areas of the country but the dollar's cheaper value is still not helping, hence the vast majority of Americans being dissatisfied with the direction of the country right now. When Americans eventually de-leverage the bad debt and sell it to other nations, what would happen as a result in your opinion?
Could it mean that China or other nations would literally own parts of America? For instance, could China theoretically own certain lands, buildings, or sections of the USA as a result of owning that debt permanently?
If they de-leverage 2 things happen 1 good 1 bad. On the bad side
deflation is far worse than inflation, picture this.... u create goods that sell for $10 but cost u a total of 6$ to make, when deflation occurs the price of goods fall to say $4-5... when this happens the price of ur home, car, payments, profits and more fall too which can also translate to debt problems, decline in ur currency, and even unemployment as u have to lay ppl off to cut costs and adapt. Now picture that happening nationwide and in all traces of life and business.... This happened in 1933 if memory serves me.
On the bright side ? When u adjust, goods are cheaper, ppl can consume more (but if u cant afford to buy more cuz ur value of ur dollar falls below it whats the point in cheaper goods LOLOL), ppl will save more (which can be good or bad), if foreigners are buying that debt u will now have more surplus to invest (but creditors to make payments to), and foreigners who now have far greater purchasing power can buy ur goods, it might be a lot cheaper to manufacture again in ur country meaning jobs could be created and another competitive advantage added. In real terms, since foreign countries like India, China, Europe, Canada, Brazil are where most of the growth is going to come from their growth will also be ur growth as well. And they will pump money into ur country.
Also ud alleviate the debt problem ASSUMING u dont deleverage ALL of it.
You'd have to be more specific in what u mean by
'literally own parts of America' , it kind of does and doesn't work like that. If you buy debt, it depends on the type of debt u buy, usually when a creditor CANT make payments u come in to collect the physically property or asset. In the case of the U.S. if u own a ton of debt of say NY municipal bonds ur not gonna OWN New York LOLOL if they cant make payments. But a building or something tangible ? If the owner of that building cant make payments and thats what the terms of the debt obligation entitle u to sure. If the Americans de-leverage tho I'd assume theyd do it with the intention of never taking it back LOLOL.
