Gold Sets New Record as QE2 Devalues Fiat Currencies

[Quiksilver]

The worst thing you can have is deflation like in your example. A small amount (1-3%) of inflation is considered healthy. It's an indicator of economic progress. Anything above 3% and you've got trouble.

Inflation is fine if it's in accordance with rise in GDP or rise in population.

A healthy GDP increase is between 2-4% from current standards. China has 7+% increase in GDP per year. Japan has 0.5-1.5% increase in GDP per year.

Increasing the money supply based on production levels and creation of wealth is good. That is why inflation is termed 'good'. Any inflation more than that, like we are seeing now where creation of wealth and GDP is not increasing at a correlating rate, in reality is bad.

They're gonna print more money! That's awesome! More money for me to stack! I can't wait to get my hands on some of that!

Oh wait, you guys are mad they're printing more money? Ok cool, ya'll complain, I'll collect.

Peace.

Yes, of course. Every dollar in your bank account is worth less and less for each dollar the Fed prints.

In layman's terms:

That $100 you made yesterday, will only have the buying power of $95 today.

I do not see much whining/complaining in this thread, any more than discussing a problem is complaining. Gathering information and sharing it, in accordance with reality--which is neither pessimistic nor optimistic--is not complaining.

We have already shared how to profit from this depression:

Use money you have saved to buy assets (property, failing businesses, undervalued stocks) while they are flooding the market and are cheap. If you believe that eventually the economy will strengthen, then this is a smart route for those who can afford it.

Invest in silver because it is substantially devalued below its market value, when corrected for 1980s inflation. Perhaps on the order of 400% - 1000% below market value right now.

Invest in gold because it holds value as the value of the dollar decreases.

Become more thrifty with your finances and lean out your budget. Determine what is good and what is wasteful.

...

Oh wait, you guys are mad they're printing more money? Ok cool, ya'll complain, I'll collect.

The above are all ways to profit from the current depression, I'd love to hear some of your ideas since your cute anecdote implied that you have knowledge that we do not.

 

[highconscienceness]

Quicksilver really REALLY gets it.


I suggest listening to some Alex Jones at www.infowars.com, radio show starts every day from 12 PM EST until 4 PM. All other times they are rebroadcasting, so tune in anytime. There is much more than dollar being crashed in order to force YOU into slavery, and eventually into war with someone. After all wars have brought America out of depression before. So tune in and find out what's going on.

 

[Alle_Gory]

Oh wait, you guys are mad they're printing more money? Ok cool, ya'll complain, I'll collect.

That's not how an economic system works. Here's an example.

Country A produces widgets. 300 widgets every year. It also prints money, 300 dollars every year. In order to sell all those widgets, they are priced at $1 each. 300 widgets sold, 300 dollars of currency for the people to spend.

Now, let's say that the bank wants to print money. 300 widgets are still produced but the bank wants to print $600. Now those widgets are priced at $2 each but everyone still makes the same wage.
Only $300 of dollars of widgets will be sold on the market. The other $300 worth will be probably be exported because no one can afford to buy them.

You can go ahead and collect your little stacks of bills, but you're probably going to make the same wage. Wages rarely increase to offset inflation. That means that every year, you will be able to buy less with your little stack.

But I guess that makes you happy? Whatever works.

 

[Mr.Positive]

But so far, there's indication that we're heading towards currency wars.

This is due to globalization. A common ground hasn't been reached yet.

Here's a good article about the possibility of a currency war happening.,.

http://www.321gold.com/editorials/schiff/schiff111010.html

 

[Kailex]

They're gonna print more money! That's awesome! More money for me to stack! I can't wait to get my hands on some of that!

Oh wait, you guys are mad they're printing more money? Ok cool, ya'll complain, I'll collect.

Peace.

Please, don't ever post again.

 

[Wiesman44]

And one more thing:

Wiesman44 and Julius_Seizeher... both of you. I am not clear if you are referring to me, but you had better not be. If this were in person I'd be mighty P!ssed off if you called me a lair or say that I am weak. I tell things honestly to the best of my ability.

Lol, whats with the hissy fit ?