Depression in the USA - Deflation verus Inflation

[JBmurc]

You should be happy though. If you have debt up to the eyeballs then central bank policy is working a treat for you, as long as they keep supressing interest rates. Idiot savers like myself are getting hammered big time, losing purchasing power and missing the big gains in asset prices all while the mortgage gets easier and easier to pay off.

No mega debt for me at the moment ...actually in a net debt free position as personal house is debt free only debt 200k is for my company which has 100k more in liquid asset value than debt at present ...but I am looking to take on more debt if I can find the right investment ..got enough in the ASX ....looking at many local properties but nothing looks good buying to me ...

[stevo1]

You should be happy though. If you have debt up to the eyeballs then central bank policy is working a treat for you, as long as they keep supressing interest rates. Idiot savers like myself are getting hammered big time, losing purchasing power and missing the big gains in asset prices all while the mortgage gets easier and easier to pay off.

Yep the banks and their debtors are having a field day at the expense of the prudent savers.Look at bank profits.Property prices,"classic cars"etc.The central banks have super injected money into their economies.The CPI is a ruse(just take out "stuff" so the measure suits the required answer they want)But does not take into account the hyper inflated property prices (cause they dont count that anymore) not only that but price increases measured over time is a bit like boiling a frog,it happens over a time period the frog does not noticed till its boiled.Not just a NZ problem. Stems from the big central banks they have indicated an end is in sight to fiscal easing but what they say and do well that is a whole other story.Their problem is all the "tools" at their disposal have been used .Personally I have a spread of assets/cash/PM/shares

[JBmurc]

Not sure about others deal with their bank but I'm finding Westpac very fearful at the moment to give me investment funds.


Great read below

https://www.linkedin.com/pulse/austr...ds-matt-barrie

[arc]

Not sure about others deal with their bank but I'm finding Westpac very fearful at the moment to give me investment funds.


Great read below

https://www.linkedin.com/pulse/austr...ds-matt-barrie

Also consider that the majority of American households are presently carrying the largest amounts of debt in 60 years. Their savings have also minimised. If something breaks in either America or China... Lemmings

[Valuegrowth]

https://www.fxstreet.com/analysis/ch...t-201711171231

[JBmurc]

I see on 3 News tonight huge food inflation .....but will the Central bank listen ..NO

[kiora]

I see on 3 News tonight huge food inflation .....but will the Central bank listen ..NO

JB Its not too late to buy a farm

[JBmurc]

JB Its not too late to buy a farm

Cannabis/heap farm? I'm sure I could grow weeds

[Aaron]

I see on 3 News tonight huge food inflation .....but will the Central bank listen ..NO

All the debt gets inflated away. No way they will spoil the party by raising interest rates. Globally they don't have a choice now I think Japan and the USA have to have inflation as they have no other realistic way of paying their debts. They don't intend to pay them. Angry that I am on the wrong side of the deal. Never mind house prices are going up along with everything else.

[Aaron]

Interesting read
http://www.zerohedge.com/news/2017-1...re-absurdities