Taxation by Currency Devaluation - Page 2 - PeachParts Mercedes-Benz Forum

Hatterasguy · #16 03-16-2008, 12:50 PM

At the grocery store we are getting slamed. I have never seen so many price changes! That $.99 can of Olives is going to cost you $1.50. Everything seems to be going up.

Brian Carlton · #17 03-16-2008, 01:07 PM

Quote:

Originally Posted by Hatterasguy

Everything seems to be going up.

That's because it's climbing dramatically. If I had to guess, I'll bet that we're running at 8% annual inflation right now..........with everything included.

The government has taken many of the critical needs of most folks out of the inflation figure and they portray a rate of 3%. It's absolute BS.

Hatterasguy · #18 03-16-2008, 01:15 PM

I'm worried because the grocery industry is seeing flat or slightly declining sales. People are not buying as much food, and not the extra crap like cookies.

For the first time in my memory some local marina's have empty slips this year. When I left the marine industry 2 years ago there were waiting lists.

People are cutting back, thats not a good sign. I'm always am optimist in regards to the economy, but honesty I think we are entering a recession.

Brian Carlton · #19 03-16-2008, 01:47 PM

Quote:

Originally Posted by Hatterasguy

People are cutting back, thats not a good sign. I'm always am optimist in regards to the economy, but honesty I think we are entering a recession.

A little tidbit: We are currently in a recession.

Hatterasguy · #20 03-16-2008, 01:56 PM

Well a recession means negative economic growth right? AFAIK the GDP hasn't declined.

Brian Carlton · #21 03-16-2008, 02:03 PM

Quote:

Originally Posted by Hatterasguy

Well a recession means negative economic growth right? AFAIK the GDP hasn't declined.

http://www.boston.com/business/articles/2008/03/15/recession_is_here_economist_declares/

You cannot know until well after the fact.

We'll see if Feburary turns up negative. Bet on it.

Hatterasguy · #22 03-16-2008, 02:25 PM

Good article, it states the situation very well:

US investment giant Bear Stearns Cos. yesterday morning received an emergency bailout loan for an undisclosed amount that was facilitated by the Federal Reserve Bank, which invoked a little used Depression-era measure to unleash the funds. Bear Stearns is in dire need of cash after it was forced to write off billions of dollars of losses in mortgage-related investments, and worried investors withdrew their funds

Shocking really.

Feldstein followed his remarks in Florida with an emphatic statement later in the day.

"The economy is now in a recession," he said. "It will last longer and be deeper than the last two recessions, which lasted only 8 months from peak to trough. It could well be longer and deeper than the recession in the early 1980s that lasted 16 months."

Well if it gets really bad I think I just stay out of the job market another two years and get my MBA insted.

A lot of agents are hurting, even the good ones. There are just fewer deals to go around.

Botnst · #23 03-16-2008, 02:41 PM

Interestingly, an article in today's local paper clearly demonstrated a regional component to the economy -- we are in a real estate boom. Prices are high and projects are languishing due to lack of skilled labor.

Also, remember that the fuel crises of the 1970's meant huge price increases in fuel. What did oil companies do with those profits? Anybody?

B

DieselAddict · #24 03-16-2008, 02:41 PM

I've read that it's better to let the economy correct itself than to keep trying to re-inflate the bubble that could lead to a much worse recession or even an outright depression later on. The main problem with cutting interest rates is that it fuels further currency devaluation and inflation and we already have plenty of that.

Quote:

Originally Posted by LaRondo

The weak part about Obama is that he doesn't have the backbone to resist the lobbies.

I don't get that impression, but we'll see if he gets elected. I think he has a better chance of resisting the lobbies than either of the other 2 candidates.

Hatterasguy · #25 03-16-2008, 02:53 PM

Quote:

Originally Posted by Botnst

Interestingly, an article in today's local paper clearly demonstrated a regional component to the economy -- we are in a real estate boom. Prices are high and projects are languishing due to lack of skilled labor.

Also, remember that the fuel crises of the 1970's meant huge price increases in fuel. What did oil companies do with those profits? Anybody?

B

I'm still going to build a house this year.

BENZ-LGB · #26 03-16-2008, 03:14 PM

Quote:

Originally Posted by DieselAddict

That's why there has been a lot of investing in oil futures for example. The dollar is just about worthless. I don't mean to turn this into a political rant, but this is what really irks me about most republicans. They like to issue tax cuts and not worry about the deficit which is actually worse than a tax increase when you consider the currency devaluation and interest payments that go along with deficits.

No, true Republicans are fiscally conservative. Deficit spending is NOT a Republican trait.

The Federal budget can't be blanaced because of prok-barrel spenidng and EVERYONE participates in that.

Hattie, buy euros as a hedge inflation. Or buy gold. If you buy RE, be prepared to hold it for a while before it goes up again (which it will sooner or later!)

Righ tnow I would not invest in the stock market, unless it is high-tech stock.