IMHO, the next step is INFLATION!

[Terri]

The govenrment has taken un a HUGE debt. The easiest way to make ends meet is to print more money. That will, of course, mean the dollar is worth less and inflation will occur. IMHO.

Every recession has its end, and I suspect this one will ease up in about a year. Of course, the government will be collecting less taxes this year due to so many being unemployed. AND, there is the interest on the money they have borrowed to cover!!!!!

I see no alternative but to print more money.

It will be a great time to ALREADY own your home, with fixed interest rates. Your wages will be going up and, unlike the renters, your monthly payment for housing will not be going up (excepting for taxes, of course! :P).

The people who will be hurting the most with inflation are those on fixed incomes, and the renters with large families. People with homes and gardens will be the best off!

[GoodDaughter]

I agree Terri. I'm no economist, but I've been alive and cognizant long enough to have an idea of how things work.

This has been going around and around in my head for a couple of months now, and I think printing more money (as insane as that sounds) is indeed the next step the gvmt. is going to take. The Democratic congress has already shown that they lack even a rudimentary grasp of what the 'middle class' (who they claim as their own ::)) is going through. Trillion dollar bail outs, with another trillion 'stimulus package' to come, giving themselves raises all the while.... there simply isn't enough money in our economy to cover all these machinations even WITH unbearable interst tacked on. The money simply isn't there no matter what they do to try to find it, shuffle it from here to there, borrow it (hah, who's going to lend to the US right now?) or start producing it ourselves in terms of GDP. So what's left? Uhmm.... fire up the printing presses, I guess? That, plus a big fuel tax. Oh yes, that's coming, mark my words. They figure that $4/gal was the breaking point, and now reg. unleaded is about $1.45 and diesel at $1.99--2.49, so hey, 'the people' can afford .25 or .50 cent/gal. (or more!) fuel tax hike. I'm thinking more like about a dollar a gal.

Just wait, it's coming.

[Wyobuckaroo]

Howdy

Makes sense to me that inflation will be the alternating waves along with foreclosures etc.

I think there will be a pattern to it. More or less.

Wyo

[fnfredux]

they are already printing a LOT of money.
WOW, I just didn't realize quite HOW much, seems it just can't stop.
We're in BIG BIG trouble!
http://www.globalresearch.ca/index.php?context=va&aid=11236
We (as a nation) bought the way too big house and the way too big gas guzzler and are maxed out on all credit cards and our larder is empty and the utilities are turned off. Now we're burning the furniture to stay warm only we don't have a fireplace so we're doing it on the floor. And of course we have let our insurance lapse because we cannot pay.
This is not going to get better for a LONG time. Not next year, or the next 5 years.

[Wyobuckaroo]

Have noticed that the strength of the dollar has changed a lot in a short time.

What I have noticed is the exchange rate of the Japanese Yen and Euro.

Yen is about 90 to the dollar
Euro is about $1.35

Wyo

[madmac]

This is not going to get better for a LONG time. Not next year, or the next 5 years.



I agree with that statement. No quick fix here and it's gonna be slow going rebuilding this mess.

[gregabob]

I'm getting concerned about hyperinflation-Weimar Republic style. The parallels are ominous. Hard money is going to be the only thing worth having as a medium of exchange. I think a series of stock market 'rallies' followed by bigger crashes are in store. Our economy has been hollowed out by job outsourcing due to high taxes and regulations over the years, I don't think there's any quick fix. Instead of Gov't realizing it's the problem, all the bureaucrats know how to do is increase regulations on the little guy and Congress just tries to tax us more, while bailing out their buddies.... >:(

[fnfredux]

I'm getting concerned about hyperinflation-Weimar Republic style. The parallels are ominous. Hard money is going to be the only thing worth having as a medium of exchange. I think a series of stock market 'rallies' followed by bigger crashes are in store. Our economy has been hollowed out by job outsourcing due to high taxes and regulations over the years, I don't think there's any quick fix. Instead of Gov't realizing it's the problem, all the bureaucrats know how to do is increase regulations on the little guy and Congress just tries to tax us more, while bailing out their buddies.... >:(

Yep, it's our turn this time. The paralells are uncanny.
Even to the GVT and our very own "messiah".

[MissouriFree]

The govenrment has taken un a HUGE debt. The easiest way to make ends meet is to print more money. That will, of course, mean the dollar is worth less and inflation will occur. IMHO.

Every recession has its end, and I suspect this one will ease up in about a year. Of course, the government will be collecting less taxes this year due to so many being unemployed. AND, there is the interest on the money they have borrowed to cover!!!!!

I see no alternative but to print more money.

It will be a great time to ALREADY own your home, with fixed interest rates. Your wages will be going up and, unlike the renters, your monthly payment for housing will not be going up (excepting for taxes, of course! :P).

The people who will be hurting the most with inflation are those on fixed incomes, and the renters with large families. People with homes and gardens will be the best off!


Absolutley. Agree 100%,

The other thing to consider is if you are in the market for a new car, it is the perfect time to get one of the
""0%" loans. With inflation it is like a savings account.

[pinetreefarm]

According to my price book...inflation has begun.

Pine

[gump]

Boy, what is going on with the food prices. I figure we would get a small break and not see any increases.

[Michael32170]

The massive debt that is being built up as we write, is going to force inflation. Otherwise, the debt will be too much to pay.

At the very least, you can expect higher then normal inflation for a few years.

[snake]

Inflation...Is there any good to it? Remember the Jimmy Carter days?..... Banks were giving crazy rates, in the 20's, for mortgages...but also deposits. We might go that way again. If you have in a locked in mortgage rate..ur good. If the interest rates skyrocket for deposits, and you have some money to deposit, that'll be good to. If you trust the banks! If you are on the other end, variable, or trying to get a mortgage, it could get tough. Hopefully we won't have to go there.

[Michael32170]

It is going to be interesting to see. All that cash pumped into the economy has to show up somewhere. In the past, when there was little general inflation we saw bubbles in the stock market and housing market. I'm wondering where we will see the next bubble.

If we don't see some kind of asset bubble forming, then general inflation will occure.

This additional money replace massive amounts of money that disappeared over night and over a few months. But, it still has to show up.

Quite frankly, I'm watching to see where it is going to show up, then I plan to get on board and ride it up.

[gump]

There is a bubble - Treasuries