What to do when the USD is worth nothing?

Toggle sidebar Toggle sidebar
B

BlahBlahYouToo

Lifer
Jul 10, 2007
12,041
3
0
Some feel that hyperinflation is on the horizon with all our spending.
At that point, our money will be worthless.

What's the best hedge against this? Other currencies?
 
I

Infohawk

Lifer
Jan 12, 2002
17,844
1
0
The traditional hedge would be gold.

But when all the posters, bloggers and digg-type sites start rambling about hyperinflation or economic meltdown, I begin to wonder if the opposite won't in fact become true.
 
MJinZ

MJinZ

Diamond Member
Nov 4, 2009
8,192
0
0
Infohawk said:
The traditional hedge would be gold.

But when all the posters, bloggers and digg-type sites start rambling about hyperinflation or economic meltdown, I begin to wonder if the opposite won't in fact become true.
Click to expand...

Deflation is actually what's going to happen.
 
B

BlahBlahYouToo

Lifer
Jul 10, 2007
12,041
3
0
Infohawk said:
The traditional hedge would be gold.

But when all the posters, bloggers and digg-type sites start rambling about hyperinflation or economic meltdown, I begin to wonder if the opposite won't in fact become true.
Click to expand...

so where do i go to buy me some gold bars?
 
shira

shira

Diamond Member
Jan 12, 2005
9,500
6
81
Why would you think the dollar is becoming worthless? The problem we face is DEflation, not INflation.
 
Cogman

Cogman

Lifer
Sep 19, 2000
10,286
147
106
Make a new currency. Call it the new dollar, and set its value at 1,000,000 dollars / new dollar. Worked well for other nations :D

We aren't quite to the point of hyper-inflation. While 5 dollars is worth less then it was 10 years ago, it isn't worth 100x less. All other examples of hyperinflation had nations who where spending a MUCH higher percentage of their GDP then we are. Yes, we have more debt then Greece, we also make a heck of a lot more.
 
MovingTarget

MovingTarget

Diamond Member
Jun 22, 2003
9,002
115
106
Make sure your wheelbarrow is in working order for extensive use every other Friday?

Seriously, this isn't going to happen. A hyperinflation scenario is not likely despite our current economic woes. We should be more worried about deflation at this point if the job situation does not improve.
 
Vic

Vic

Elite Member
Jun 12, 2001
50,422
14,337
136
Inflation is the least of the economy's worries at this point.

In fact, I think there's something extremely weird about this fearmongering about hyperinflation at a time when interest rates are at record lows, housing prices are falling, and actual inflation figures are borderline deflationary.

Now... rising interest rates would be a genuine concern, but I don't see that happening until probably next year.
 
Cogman

Cogman

Lifer
Sep 19, 2000
10,286
147
106
her209 said:
Alchemy is your only solution.
Click to expand...

Fullmetal123.jpg
 
B

BlahBlahYouToo

Lifer
Jul 10, 2007
12,041
3
0
Vic said:
Inflation is the least of the economy's worries at this point.

In fact, I think there's something extremely weird about this fearmongering about hyperinflation at a time when interest rates are at record lows, housing prices are falling, and actual inflation figures are borderline deflationary.

Now... rising interest rates would be a genuine concern, but I don't see that happening until probably next year.
Click to expand...

when the fed realizes they are inflating another bubble by keeping interest rates low, they will have to hike rates.

the economy is not going to recover by then so rising interest rates + poor economy + high unemployment are conditions that would bring about inflation.
 
T

torpor

Junior Member
Nov 25, 2009
2
0
0
You're all right.

There are very large forces at work, of both inflationary and deflationary types.

Inflationary:
Massive government deficit spending
Low fed funds rate
Increase in monetary supply (M3)

Deflationary:
Low rate of loans being made
Unemployment
Savings-oriented public (low overall demand)

The feds are walking on a katana edge here.
Or, think of it this way - for what the fed's doing, we should have huge, Carter-esq inflation.

We don't.

That alone should scare the hell out of you. Just think about the economic force required to counteract $1 trillion of government waste deficit spending on top of a 0% funds rate.
 
Bitek

Bitek

Lifer
Aug 2, 2001
10,676
5,239
136
The best action to take would be to wake up from dreamland, take a breath, and realize the hyperinflation monster is not under the bed.

Next best action would be to buy gold coins and a crisis garden kit from glenbecktard.com
 
M

Moonbeam

Elite Member
Nov 24, 1999
74,931
6,793
126
Vic said:
Inflation is the least of the economy's worries at this point.

In fact, I think there's something extremely weird about this fearmongering about hyperinflation at a time when interest rates are at record lows, housing prices are falling, and actual inflation figures are borderline deflationary.

Now... rising interest rates would be a genuine concern, but I don't see that happening until probably next year.
Click to expand...

Somebody selling a book? When you substitute money for real self worth, you prime the pump for a fleecing.
 
L

LegendKiller

Lifer
Mar 5, 2001
18,256
68
86
torpor said:
You're all right.

There are very large forces at work, of both inflationary and deflationary types.

Inflationary:
Massive government deficit spending
Low fed funds rate
Increase in monetary supply (M3)

Deflationary:
Low rate of loans being made
Unemployment
Savings-oriented public (low overall demand)

The feds are walking on a katana edge here.
Or, think of it this way - for what the fed's doing, we should have huge, Carter-esq inflation.

We don't.

That alone should scare the hell out of you. Just think about the economic force required to counteract $1 trillion of government waste deficit spending on top of a 0% funds rate.
Click to expand...

How about 10 trillion in assets being blasted into thin air and the leverage from those assets being written down to match them.
 
L

LegendKiller

Lifer
Mar 5, 2001
18,256
68
86
BlahBlahYouToo said:
when the fed realizes they are inflating another bubble by keeping interest rates low, they will have to hike rates.

the economy is not going to recover by then so rising interest rates + poor economy + high unemployment are conditions that would bring about inflation.
Click to expand...

There won't be inflation with low employment and a poor economy.
 
You must log in or register to reply here.

TRENDING THREADS

COMPANY
RESOURCES
FOLLOW
Top Bottom