Great Depression of 2016

[rufus]

Where do you get that Russia was supposed to dump dollars ?
I think I told you about reading those conspiracy sites.

How is that hyper inflation we were supposed to have for the last few years working out ?

It is coming. They can't continue printing money without having an increase in production. Maybe it is the increased petroleum supply that is staving it off. The printing press doesn't solve problems, but it can put them off for a while.

 

[hemet dennis]

Quote:
Oh come now. You guys have been saying we would have hyper inflation "any day now" for 5 years.

QE is done, they're not printing anymore and are even getting rid of what they did print as bonds mature.

That hyper inflation chicken is dead.

 

[hemet dennis]

Quote:
The buyer of the oil pays the transport cost.
Brent is mostly transported by water. Water transport is cheaper then land transport.
It's cheaper to ship a barrel from the Middle East then it is to ship one from Oklahoma to the gulf refineries.

 

[MrsBrooke]

That hyper inflation chicken is dead.

I dunno about that "hyper inflation" doomporn, but wages have stagnated. Most people are earning the same amount as they would in 2007, but "meat and milk" continue to increase in price. Grocery shopping for anything besides the most over-processed Hungry Man dinners will cost you a mint.

If you aren't conscious of the fact that the $100 bill is the new $20, with all due respect, are we living on the same planet?

MrsB

 

[rufus]

Well Dennis, it seems we are seeing a bit of a sell off this morning. The question is it bargain day, or is it the beginning of the end? I don't know.

On the question of inflation, I guess it is just who's ox is gored. Working class people are still stuck with high prices and lower wages. If the fast food people get their $15 an hour, that will kill the industry. We will all be going back to peanut butter and jelly sandwiches. The truly wealthy will move down to tuna sandwiches. It might not be a good time to buy into Micky Dee's.

My guess is that all of that money they printed up and put into the banking system was not used in consumer credit, but instead stuck into the stock market. Now it has to be paid back. So, in a way, you are correct Dennis. It is being paid back.

My fear is that we will see a lot of inflation in prices and lower wages and more unemployment.

I see Maduro, the president of Venezuela, is off to China to beg for financial aid. They are in a real fix. Government can print money, but they cannot print peanut butter and jelly. I fear what we are seeing in Venezuela will be our future.

The Chinese are pretty sharp, Maduro will have to sell his soul to them.

 

[MrsBrooke]

The Chinese are pretty sharp, Maduro will have to sell his soul to them.

They are, indeed. They have allied with Russia again and will help them out in the coming crisis. Russia and China are excellent friends for each other.

We, on the other hand, are still over here throwing a fit in the sandbox (and sanctioning North Korea for..... WHAT again??). *sigh* This is why we can't have nice things.

MrsB

 

[rufus]

I suspect it is a marriage of convenience. When it goes bad, it will do so in a big way. I am afraid it will center around the Chinese proclivity to steal industrial secrets and their tendency to copy products. They buy one and reverse engineer it. Then they flood the world market with cheap imitations. The Soviet Union and now Russia put big bucks into research and development.

I bought a new kitchen knife about a year ago. It said "German designed" on the packaging. Then in tiny letters, it said "Made in China."

The Chinese have no respect for patents and copy rights.

 

[hemet dennis]

I suspect it is a marriage of convenience. When it goes bad, it will do so in a big way. I am afraid it will center around the Chinese proclivity to steal industrial secrets and their tendency to copy products. They buy one and reverse engineer it. Then they flood the world market with cheap imitations. The Soviet Union and now Russia put big bucks into research and development.

I bought a new kitchen knife about a year ago. It said "German designed" on the packaging. Then in tiny letters, it said "Made in China."

The Chinese have no respect for patents and copy rights.

This is the problem, you complain about China and then buy knives from them.
Just keep buying from the Chinese, and then wonder where they get the money to do what they do.
Don't buy American goods and then wonder why there are no jobs here.
Blame the companies blame the government but don't blame the people buying the Chinese goods.

Lets see how that works out.

 

[hemet dennis]

Well Dennis, it seems we are seeing a bit of a sell off this morning. The question is it bargain day, or is it the beginning of the end? I don't know.

On the question of inflation, I guess it is just who's ox is gored. Working class people are still stuck with high prices and lower wages. If the fast food people get their $15 an hour, that will kill the industry. We will all be going back to peanut butter and jelly sandwiches. The truly wealthy will move down to tuna sandwiches. It might not be a good time to buy into Micky Dee's.

My guess is that all of that money they printed up and put into the banking system was not used in consumer credit, but instead stuck into the stock market. Now it has to be paid back. So, in a way, you are correct Dennis. It is being paid back.

My fear is that we will see a lot of inflation in prices and lower wages and more unemployment.

I see Maduro, the president of Venezuela, is off to China to beg for financial aid. They are in a real fix. Government can print money, but they cannot print peanut butter and jelly. I fear what we are seeing in Venezuela will be our future.

The Chinese are pretty sharp, Maduro will have to sell his soul to them.

It's a sellers day. I can sell today and take the profit and not have to worry about the taxes for more then a year. You may see as much as a couple of weeks of down markets, not a big or unexpected thing.

It doesn't appear that you really know what QE was or did.

 

[Rosa moschata]

http://www.wsj.com/articles/dollar-surges-to-11-year-against-biggest-rivals-1420221525