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U.S. Government Stages Fake Coup To Wipe Out National Debt
Real Estate Newsletter Articles this Week: Existing-Home Sales Increased to
4.15 million SAAR in November
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At the Calculated Risk Real Estate Newsletter this week:
[image: Existing Home Sales]*Click on graph for larger image.*
• NAR: Existing-Home Sales Increase...
17 hours ago
4 comments:
Stag,
I took a "sea"esta last week. Anyway, the following relates to your post on Japan's deflation:
http://www.meti.go.jp/english/statistics/tyo/syoudou/index.html
Wholesale sales were down 30% yoy in Japan! There is some good news though - the rate of deflation is inflating.
mab,
Good to see you back. :)
That's a very interesting table!
Unless we miraculously start generating some jobs here in America (so that Americans can actually afford to buy stuff at malls), I'm not going to lose much sleep worrying about hyperinflation.
I'm fairly comfortable riding the line as a paper stagflationist (in TIPS). We're a rare breed I think. The deflationists don't want the inflation protection and the inflationists don't want the paper.
Stag,
The deflationists don't want the inflation protection and the inflationists don't want the paper.
I'd add that the majority can't imagine that a 2% real yield is a good deal. Seriously, how hard could it possibly be for a financial "professional" to outperform the gov't and beat a 2% real return?
http://research.stlouisfed.org/fred2/series/AAA?cid=119
Financial "professional" - now there's an oxyMORON every dingbat should understand by now. But they don't. Oh, the power of propaganda!
I'm not going to lose much sleep worrying about hyperinflation.
Same here. No way will they destroy the dollar franchise.
Even high inflation seems unlikely when you consider who would benefit and who would lose. High inflation would benefit debtors and hurt creditors.
Everything I've seen makes me believe the sytem is run for the benefit of the creditors, not the debtors. More so now than ever. I'm guessing they'll print just enough money to bail out the creditors from their bad loans and no more. Heck, banks are exchanging trillions in junk loans for cash and can borrow at 0%(!!!!), while debtors are being brutalized with foreclosures, soaring fees and penalties.
When it suits the creditors, pressure will be brought to bear on Bernanke and CONgress to stop the printing and spending. Public opinion is so easy to shape these days. Buffett just sounded the early warning bell. He clearly has already secured his personal bailout. Debtors will get no such relief.
Cui bono?
mab,
"I'd add that the majority can't imagine that a 2% real yield is a good deal. Seriously, how hard could it possibly be for a financial "professional" to outperform the gov't and beat a 2% real return?"
Better still, how hard could it be for a financial "professional" to beat a 2% real return while simultaneously charging 2% fees? ;)
I often post over on the TIP message board. What I just posted backs your sarcasm.
http://messages.finance.yahoo.com/Stocks_%28A_to_Z%29/Stocks_I/threadview?m=mm&bn=72746&tid=1864&mid=1868&tof=1&rt=1&frt=2&off=1
"They say the goal in a bear market is to lose less than the next guy. I've been bearish since 2004. I see bear market for as far as the eye can see. Therefore, here's what I'm hoping for long-term.
Inflation averages 0%. I earn 1.47% on TIP (after the 0.2% expenses within the fund). I pay almost no taxes on it. Adjusted for inflation, my nest egg actually grows ever so slightly going forward. I doubt inflation averages so little (and that's why I want TIP's inflation protection).
Compare this to what the typical stock market investor has experienced since 2000.
In January of 2000, the CPI was 168.8. As of July of 2009, the CPI was 215.351. That means the typical stock market investor needed to earn 27.6% (after taxes) just to keep up with inflation. As of today's close, the DJIA is down 18% from January 3, 2000. While some dividends were paid to offset that loss, much of the dividends simply went to pay the average mutual fund's higher ongoing expenses. According to Investopedia, the average mutual fund charges 1.3% to 1.5% per year in fees.
Of course, those who put their nest egg in Nasdaq stocks did even worse than that. Much worse."
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