Easy answer for the average guy with an average education. YES!There is no other direction we can go. Hyper inflation is on the way, and
soon. We sit and argue about this and that and yet we aren't even paying
attention to the rise in inflation that has already happened. We are sitting on
a mountain of debt and we think everything is fine because the faux rise in the
stock market makes it seem so. Just because the government and the fed are
upholding banks and financial institutions with borrowed and printed money, we
are going to pay dearly for this intentional destruction of our economy and the
The Government does not regulate that market, so the answer is YES -
absolutely.Just look at the price of gas. No reason, just becasue
they can.Businesses will do anything for a buck.If you
don't like fluxuations - then the Government needs to regulate.
At this point in time, the expectation of higher interest rates is NOT a good
sign for seniors - or anyone on a fixed income. Yes, higher rates will give a
lot of them a bump in monthly income. But that bump in income, will be more
than eaten up by inflation - as the real value of their investments steadily
decrease. Significant inflation is virtually always a losing proposition for
Inflation is an economic problem that monetary tools are effective against.
Deflation and stagflation are problems that have very few tools to use to
combat. The specter of deflation showing in 2008-10 came at a point when rates
were almost at zero already. Since rate lowering is really the only tool to
combat deflation and they were already low, doing things that stimulate
inflation is in effect, stimulating the economy. There are many more tools to
deal with inflation so the printing of money was a good thing overall. Nothing
is ever good for everyone individually, but as a whole the QE1 & QE2 efforts
will be viewed as successful long-term.FYI, if you are in debt,
inflation is your friend. BTW the US is in debt. So
"civilized" inflation, to a point, is actually a good thing for the
majority of Americans and by extension the world. IMHO.
Just a couple points... Inflation is CAUSED by the central bank when it prints
money. It is NOT a good thing in that it is another form of taxation. It steals
the wealth of responsible people who saved.Deflation is NOT a
"problem." In fact, it's a good thing. When the price of a computer
goes down because manufacturing methods have improved or because volume has
increased, or because competition has increased, that's a good thing.The government is printing money as fast as it can. It will continue to do so.
The fed is now in a no-win situation. When they raise rates, the commerical and
private real estate market will tank.Look, if you're on a fixed
income and are getting a 1% return, you're in trouble. Inflation is probably 10%
or more now (the govt's statistics are lies - just go to the gas station and
grocery store to see what's really happening). Consider commodities. Silver is
up FIFTY percent in the last 6 months. Gold is up as well. They'll continue to
rise. Get out of the dollar and into commodities. (lead would be a
goodInvestmentToo - IfYouGetMyDrift).
Yes indeed. Our nation is rapidly approaching the edge of a cliff. If we don't
change directions soon it will be too late. Unfortunately I don't know if either
party has the power to stop it at this point. If we continue these destructive
patterns fueled by greed and corruption the entire house of cards will come
tumbling down. Invest in commodities... why? You can't take gold
down to McD's and get lunch, you can't take silver down to the gas station to
fill up. If the dollar collapses everyone is screwed. It won't matter if you've
got one or a billion, it will all be worthless.America doesn't
manufacture anything that people want anymore. Our exports are virtually
nonexistent, so how are we going to get out of this hole? You can't turn a
profit if you don't have any products.
@DeltaFoxtrot - why invest in commodities? Because they appreciate with
inflation. If you had bought silver 2 years ago, you would have purchased it at
$18/oz. Now it's worth roughly $40/oz. Of course, you don't go to McDonalds with
a gold coin. You take it to the coin dealer - exchange it for dollars and take
the dollars to McDonalds. When gold and silver are worthless...
that's a whole different game.
The zero interest rate has not helped the housing market for as long as it has
been in place - the figures are still nearly the same as when the bottom drop to
its furthest point. So yes, give the rest of us a break, and let our savings
earn something.It is being reported that 100% of increased income
via wages/salaries is already being eaten up by inflation - simple cost of
gas/groceries - and not all of us are seeing raises. And the
tsunami of new taxes Mr O. has planned for businesses ain't gonna help much