Hyperinflation — yesterday’s news
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Will the Fed's aggressive expansionary measures lead to hyperinflation?
- Yes (74%, 223 Votes)
- No (26%, 80 Votes)
Total Voters: 303
The Federal Reserve has tripled the monetary base over the last four years and inflation remains below two percent. Despite the Fed’s money pumping, hyperinflation is not afoot.
For an analysis of how allayed inflationary fears will lead to a more robust real estate recovery, see the upcoming October issue.
Hyperinflation, meet the Boogie Man
Since trends in real estate prices and sales volume are in fact lagging indicators of the greater economy’s vitals, it is essential to look at leading indicators and economic drivers in order to prognosticate the real estate market’s expected growth or continued decline.
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About The Author
Jeffery Marino
is an assistant editor and lead on our first tuesday news alerts, specializing in critical economic analysis and its impact on California’s real estate market.
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I can’t see how anyone can be so clueless as to vote No. It is happening now.
Please read the “Extraordinary Delusions and the Madness of Crowds”
It is now free on Google books, even Amazon I think
Crucial book to understand this. “Black Swan” as well
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By the way, the book was written in 1854 era
MacKay
“Extraordinary Popular Delusions and the Madness of Crowds”
I looked at my copy. There is a copy on every serious economists desk. A great read
Also free as an audible book for iPods.
Go get it. I found it to be a fabulous talking point on listing appointments and a sell for buying.
Not a finance book per se, but history you were never taught. I promise, if you read this book it will change your life out look for the better.
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C’mon, you guys are usually pretty good, but this article needs to be rethought. Real estate prices can most certainly rise in a rising interest rate environment. See: 1970s through much of the 80′s. With rent currently significantly more expensive in many places vs. a mortgage, there is also room to absorb increases in mortgage prices (due to rising interest rates) as more people are wiling to consider buying a house again.
E
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This comment thread is the clearest most logical explanation I have seen regarding the economy and where it is inevitably headed: https://www.kitcomm.com/showthread.php?t=93752
Burying your head in the sand will not make it NOT happen.
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And the Real Estate bumble was a hallucination for many years… I’m sorry, you can’t triple the money supply without inflation. It’s MATH. There is inflation, and were we calculating it the same as we used to it would be evident. Maybe we will bypass hyperinflation if we are lucky, but double digit- like the late 70s and early 80s is virtually assured. It’s not all a bad thing. it’s one way on minimized our crushing debt, but it is also a demon that will come home to roost. It will, of course, push more Americans into higher tax brackets as well. And it will burden lower income earners. It is an unseen tax, but in reality it is very much a tax hike on the poor, camouflaged for the sake of politics.
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The author of this article is CLUELESS! Possibly a Czar working for Obama. Just my opinion
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The person who wrote this is writing propaganda for the Fed Reverse. The Federal Reserve is owned, operated by the private side of the banks. It is not and never has been a government entity for fair and balance policies. Please read “The Creature From Jekeyl Island….
The want complete control and they control the money supply and now have the nation in debt…… that has been the plan all along.
Wake up Folks….the information I speak of can be found to those “who” chose to see the truth.
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Inflation is “low” because the things that are inflating (energy & food) are not included in their figures, how convenient. A simple explanation of what is going on with the banks & political parties can be found in the book The creature from Jekyll Island. It should be mandatory reading.
Those who do not know history are domed to repeat it!
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The money multiplier is NOT dead! The author of this article does not know what he is talking about.
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Future inflation is inevitable with our trillion dollar debt! Don’t kid yourself! Right now, inflation is low, as long as you don’t count food, gasoline, medical, commodities and college tuition. Since QE1 and QE2 did not work, we have to try QE3? This one is “indefinite”, so that Bernanke does not have to announce QE4 through QE10.
Dream on! This helps only Wall Street.
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Maybe my MBA and 50 years of business experience should have been complemented with drugs as I too may see the picture with no hyperinflation. If you’re on the middle to lower income level brace yourself because the big whammy is coming in typhoon force sooner than later.
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The tide will continue to rise into the upper middle class so that 300k earners in 20 years will live how 40k earners live now. Only then will there be sufficient discontent amongst the educated that denial of a decline can no longer be ignored. Then there will once again be a shot heard around the world. All of this has happened before, and it will happen again.
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This article needs work. Inflation measures have been manipulated by dropping important components of a family’s budget…gas and food. Printing money or more delicately Quantitative Easing has REAL implications. Every time the fed adds more paper the value of yours and my paper goes down…basic supply and demand. Until stability returns, and by this I mean a reliable gov’t who are positioned to support business, trillions sitting on the sidelines will stay there. The result is : no one is willing to expand business (hire folks) until we get a more reliable gov’t (read get rid of liberals).
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To believe that true inflation is now below 2% is naive indeed. The lie was propagated a few years ago to hold the social security payment static, with no raise for seniors and no cost of living adjustment for the salaries of average Americans or government workers, though the executives received HUGE increases even during the worst years since 2008 and the banks made tens of billions.
The goal of bloating the money supply is to shrink–in effect–the debt, on the backs of the American people, who will then suffer a massive blow to their buying power.
Bernanke just promised to deliver $40 billion a month–INDEFINITELY!!!–to his buddies the greedy banking Cabal–that’s $480,000,000,000 a year into the future, with no end date in sight! These are the same parasites that defrauded the American people of over $26 trillion—yes with a “T”–so far. They will not stop until they get every last penny and the people are reduced to financial slavery.
The article is based on fantasy, misinformation, and pro-Fed propaganda, and we cannot see how any sober minded person could accept its conclusions.
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Basic truths in life are inevitable. Printing more money will lead to inflation. Look at any other
country at any other time and that is what you’ll find. There are no exceptions; just degrees of damage. They all thought that it wouldn’t happen to them too!
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Printing money is by definition inflation…..inflation is here!!! I notice companies are tricking everyone under our noses. Some products cost relatively the same , however, you get less in package weight, less volume of products so we don’t notice increases.
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Over the past 4 years, our dollar has lost half its value.
As measured in silver.
http://www.monex.com/prods/silver_chart.html
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THIS IS A GOOD ARTICLE. IF YOU READ IT 3 TIMES FOR NON-ECONOMICS GRADS, THEN Bingo!
IF YOUR AN ECONOMICS GRAD, CPA, FINANCE TECHIE, THEN 1X WILL BE ENOUGH TO SEE IT.
SOME WILL REQUIRE READING IT 2X…… SOME, THE BOTTOM 47% AS PER ROMNEY SAID, WILL NOT MAKE ANY EFFORT TO READ IT AT ALL. THEY ARE THE L.P.O.S. IN THE USA…
AKA “moochers” as my Dad said. If your into Real Estate, it California values will be at the 2006 value by 2016-2018. It may double the 2006 value by 2020-2022. But after that, watch out…. the California 8-12 year cycle says it’s going to crash like 2007-2011 in 2021 to 2025(estimated)….. good luck ya all!!!
Signed Tech/Analysis = Max. IRR guy…..
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