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What to do when inflation rages

 
darth

User ID: 28178764
United States
05/17/2022 09:48 PM

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What to do when inflation rages
I have a Masters in Econ and Finance. Like I always say, With that degree and five bucks I can get a latte'.

However, look back at other inflation eras and consider how to survive the devaluation of our currency.

1. Buy property that pays something whether that be rent, farm crops, timber resources, or whatever. I was working the medical field in the latter 1970s. There were doctors buying Iowa farmland sight-unseen and watching it double in a year.

RE is a haven for the middle class or small investor who simply wants to protect his hard earned savings. Don't lose your principal even if you don't make great returns for a while. And usually, you can purchase it with a small down payment or even owner financing.

I sold my ancient motorhome to my next door neighbor a few months ago. This afternoon I was chatting over the fence with his new renter.

My neighbor is renting out the motorhome while it is parked in his driveway for $650/month, and the renter was thrilled to find a place so cheap. All he did was run water, an extension cord, and a flex pipe to the sewer connection.

2. Buy what you will need in the next couple of years. Beans, bullets, and bandaids. Don't you wish you had purchased primers for reloading ammo over two years ago? You could make a tidy profit right now. People are paying high prices and not even complaining.

3. Buy productive equipment. I own a small manufacturing company and a small farm. Last week I purchased $100K in brand new equipment at zero percent interest and zero down.

Hell, it will be worth more as USED equipment next year than I paid for it. Not to mention, I intend to use it and make money with that equipment.

4. Precious metals, hell YEAH! As I was watching silver, I told everyone, "Back up the truck; it is time to buy more silver".

5. Get a side hustle and build new skills. I made a huge mistake when I retired and bought an existing manufacturing company. I should have started small time in my garage and learned the business before I spent all of my savings.

The first company I bought was a total disaster. Sometimes I only learn the hard way.

I am old enough to remember the 1970s, however, what we are headed for is more like 1920s Germany or Argentina. Most countries in the world have defaulted or devalued drastically at some point.

Read the book, This Time It's Different. A couple of Harvard economists writing about devaluations and defaults going back to Rome.

I hope you all survive what is coming.
Anonymous Coward
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05/17/2022 09:50 PM
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Re: What to do when inflation rages
There is NO inflation you moron
Anonymous Coward
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05/17/2022 09:51 PM
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Re: What to do when inflation rages
Buy silver

cruise
darth  (OP)

User ID: 28178764
United States
05/17/2022 09:55 PM

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Re: What to do when inflation rages
There is NO inflation you moron
 Quoting: Anonymous Coward 78133455


None, zero, nada?

What country are you living in?

What planet are you on?

Are you a carbon based lifeform?
darth  (OP)

User ID: 28178764
United States
05/17/2022 09:58 PM

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Re: What to do when inflation rages
Buy silver

cruise
 Quoting: Anonymous Coward 82838513


Yes, per Robert Kiyosaki, for every 80 ounces mined in the world, we consume 100 ounces.

YES, the paper market for silver is manipulated.

However, it is both a PM and an important industrial metal. As the best conductor, it is required in almost all electrical and electronic applications.

BTW, I do silver plating (industrial, not decorative). If nothing else, I can plate it onto customer parts. It is worth far more on the part than I pay for the silver.

Someday, the market will break free and the silvertards will ride....to the bank.
darth  (OP)

User ID: 28178764
United States
05/17/2022 10:03 PM

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Re: What to do when inflation rages
There is NO inflation you moron
 Quoting: Anonymous Coward 78133455


None, zero, nada?

What country are you living in?

What planet are you on?

Are you a carbon based lifeform?
 Quoting: darth


Prices arw due to shortages. Supply and demand

NOT inflation

Go back to school low IQ moron
 Quoting: Anonymous Coward 78133455


In 2008-2009 Ben Bernanke wrote checks from the fed reserve to the tune of $16.5 TRILLION just outside the USA. He bailed out every central bank in the modern world.

Ben even wrote a check to the Libyan Central Bank for $150M before we started bombing them.

YES, supply and demand for dollars. The incredible printing of currency has consequences.

Ref my IQ, Mensa said it was not astronomical, but adequate. I was a single guy and thought I would meet interesting women at Mensa.

YIKES! Intelligent...yes, but it was in Kahlifornia, so they were uniformly strange women.
Anonymous Coward
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05/17/2022 10:06 PM
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Re: What to do when inflation rages
I agree with you OP but these boards are getting hit really hard with shills for the fed. That tells me we're closer to the breaking point that I originally thought.

They literally hunt out every honest call and tear in like a pack of wild animals. They're getting scared now.
Anonymous Coward
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05/17/2022 10:12 PM
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Re: What to do when inflation rages
Anyone at risk of losing their homes needs to roll all of their secured debt (motor home, cars, trucks, boats) into their home equity.. That way when they repo the home,, they repo all your secured debt.. starting over with a paid for car or truck and rv is better than starting over with nothing....




tomato
darth  (OP)

User ID: 28178764
United States
05/17/2022 10:12 PM

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Re: What to do when inflation rages
I agree with you OP but these boards are getting hit really hard with shills for the fed. That tells me we're closer to the breaking point that I originally thought.

They literally hunt out every honest call and tear in like a pack of wild animals. They're getting scared now.
 Quoting: Anonymous Coward 80562797


Well, they should be scared. I wonder if the Fed board members know the history of the French Revolution?

Seriously, they suck at shilling. Even the Sheeple are waking up. Trust in guvmint and media is heading lower.
Shadow Dance

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05/17/2022 10:14 PM

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Re: What to do when inflation rages
hunker down and break into the emg food supply ... this won't last long - and we will not make the same mistakes again, depending on others ... Culture/Religion/Politics are Science will not save you - they encouraged you into Clown World
Sharon Cherries

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05/17/2022 10:31 PM
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Re: What to do when inflation rages
Thank you so much for the helpful tips! 5*
darth  (OP)

User ID: 28178764
United States
05/17/2022 10:33 PM

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Re: What to do when inflation rages
I have always wanted to distill the most important thing I ever learned in years of Econ classes for my peeps on GLP.

The most important equation you will ever learn:

GDP (summation of all goods and services produced in a year)

is what we all bought, right? So, that is the average price of an apple times all the apples sold, the average cost of doctor visits times the number of medical visits, etc. Each transaction is in currency whether that is greenbacks, digital, or credit card. So it is the summation of Quantity (Q) times Price (P).

We used MONEY to buy those goods and services

So, GDP is equal to Q*P = money supply (M) times the Velocity (V)

That is the mill pays the farmer for his grain, the farmer buys food, seed, diesel, etc. The baker sells bread and uses the money he gets to pay mortgage, kid's college expenses, etc.

So, the actual amount of money in circulation is multiplied by V, the number of times it changes hands.

So, GDP = Q*P = M*V

If quantity goes up but prices stay stable, then either M or V must go higher. If Velocity, V, is stable, then M must go up. That is why economists generally agree that the Fed must increase the money supply to a growing economy.

What happens when people are worried? They hang onto their money longer so V goes down. If they anticipate inflation, they spend it faster, so V goes up. That throws gasoline on the inflation fire.

What happens when gold and silver are used as currency? That means the money supply is almost stable, so M never changes.

In the 1800s, that is what happened in the USA. The money supply was fixed but the economy was growing.

They had price DEFLATION. People waited to make purchases because they anticipated that prices would be lower in the future. It also rewarded savers.

Our current system penalizes savers as inflation robs them of purchasing power.

What of our current world? M has been increased tremendously. That means that unless production goes UP (Q), then prices WILL rise (P).

I hope that was clear. It is easier with chalk on a blackboard.

Questions from the class?

If any of you are caught copying answers from other students during the Final, I will send them to the Biology Dept. to be neutered.
Francisblack

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05/17/2022 11:06 PM
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Re: What to do when inflation rages
ILYS-dude a lot of sound advice being dispensed.
Anonymous Coward
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05/17/2022 11:17 PM
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Re: What to do when inflation rages
There is NO inflation you moron
 Quoting: Anonymous Coward 78133455



Next biggest idiot on here next to Jack Reno.

:gtfo:




Great post OP :5stars:
Imlay

User ID: 83163609
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05/17/2022 11:22 PM
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Re: What to do when inflation rages
Thanks for sharing. 5*
We're king of the beasts but we're hardly civilized.
ScrumpTheTexanModerator
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05/17/2022 11:23 PM

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Re: What to do when inflation rages
scrumpbump
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Christian does not equal doormat or pushover

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darth  (OP)

User ID: 28178764
United States
05/17/2022 11:23 PM

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Re: What to do when inflation rages
ILYS-dude a lot of sound advice being dispensed.
 Quoting: Francisblack


If I helped one person, I am happy.

People need to understand what is happening and prepare for it.

The inflation is now baked in the cake. The money supply has already been increased via zeros and ones on computers.

I have a friend from grad school who calls me to discuss the economy almost every day. He worked and saved his way to a retirement nest egg of approx. $3M.

For example, when Obama was elected Prez, the markets cratered. My buddy looked and found bond ETFs delivering OVER 40%/yr. He has huevos grandes, so he invested $600K in bond ETFs and tripled his money in a few months before he bailed.

He is using commodity ETFs now to profit off the rise in oil and food prices. He told me the other day that he had cleared over $200K already this year.

He also said, "You were RIGHT! The Fed said they would raise interest rates, but they quickly reversed and started buying gov bonds again. The Fed LIED".

Yup. The only way to bring down the inflation rate is a ruinous DEPRESSION that kills off demand for goods and services. In other words, all of you have to be very POOR to fix the mistakes made by the Fed.

They are in a box. If they raise rates for real and crash the markets driving us into a deep recession, the party in power will get creamed in the elections (assuming massive fraud does not win again).

I suppose the only other thing to destroy demand is a nuclear war. They could not be THAT desperate, could they?

That would be diabolical.
Economic Prepper

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05/17/2022 11:26 PM
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Re: What to do when inflation rages
There is NO inflation you moron
 Quoting: Anonymous Coward 78133455

iamwith
Economic Prepper
Anonymous Coward
User ID: 75555602
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05/17/2022 11:27 PM
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Re: What to do when inflation rages
Put on Vaseline when pumping gas or diesel.
Anonymous Coward
User ID: 77410893
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05/17/2022 11:36 PM
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Re: What to do when inflation rages
Oh wait you went for the “covert brag no wait I’m humble” strategy

Nice one
Prayandprepare000

User ID: 78116487
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05/17/2022 11:36 PM
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Re: What to do when inflation rages
There is NO inflation you moron
 Quoting: Anonymous Coward 78133455


None, zero, nada?

What country are you living in?

What planet are you on?

Are you a carbon based lifeform?
 Quoting: darth


Prices arw due to shortages. Supply and demand

NOT inflation

Go back to school low IQ moron
 Quoting: Anonymous Coward 78133455


Since covid began, 80% of all the dollars ever created came into existence. You don't think that is inflationary?

Where does such ignorance come from?
Anonymous Coward
User ID: 77410893
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05/17/2022 11:38 PM
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Re: What to do when inflation rages
Adequate derp I’m in Nambla er I mean Mensa

That’s you

Have a nice day
Anonymous Coward
User ID: 82121352
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05/17/2022 11:38 PM
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Re: What to do when inflation rages
I agree with you OP but these boards are getting hit really hard with shills for the fed. That tells me we're closer to the breaking point that I originally thought.

They literally hunt out every honest call and tear in like a pack of wild animals. They're getting scared now.
 Quoting: Anonymous Coward 80562797


I've been saying it around here for months...

They're raising rates and spiking the dollar but it isn't stopping inflation.

That's why they're freaking out.

The dollar will rise, rates will rise, real estate will rise, stocks will rise, and worst yet Commodities and Energy will rise.

They believed all they had to do was raise rates to stop inflation but it's not going to work and when it doesn't work they will have no idea how to stop what they've unleashed.

This is the real crisis.

The OPs advice is very very solid.
Anonymous Coward
User ID: 77410893
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05/17/2022 11:41 PM
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Re: What to do when inflation rages
As if you’re the only one who took economics

The Mensa thing was to INFLATE your non-existent credibility.

Wanna talk about inflation? Look in the mirror.

You’re more inflated than a hot air balloon
Anonymous Coward
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05/17/2022 11:44 PM
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Re: What to do when inflation rages
It’s ALWAYS the ones with the masters who brag and know it all.

Bachelors are humble, phd, md, everybody else.

I’m telling you it’s always the masters and what’s funny is they are the ones least likely to think for themselves. Undergrads have to to an extent and so do phd

Masters just repeat
Don Draper from Nantucket

User ID: 80692948
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05/17/2022 11:46 PM

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Re: What to do when inflation rages
hunker down and break into the emg food supply ... this won't last long - and we will not make the same mistakes again, depending on others ... Culture/Religion/Politics are Science will not save you - they encouraged you into Clown World
 Quoting: Shadow Dance


cage
PLATA BITCHEZZZZZZ

UPGRADE UNAVAILABLE

The Rolling Stones said it best...

"What's confusing you is the nature of my game"
Don Draper from Nantucket

User ID: 80692948
United States
05/17/2022 11:47 PM

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Re: What to do when inflation rages
As if you’re the only one who took economics

The Mensa thing was to INFLATE your non-existent credibility.

Wanna talk about inflation? Look in the mirror.

You’re more inflated than a hot air balloon
 Quoting: Anonymous Coward 77410893


whatanassh0le1
PLATA BITCHEZZZZZZ

UPGRADE UNAVAILABLE

The Rolling Stones said it best...

"What's confusing you is the nature of my game"
Anonymous Coward
User ID: 77410893
United States
05/17/2022 11:47 PM
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Re: What to do when inflation rages
I typically describe those with that level of education as “too smart for their own good”, “someone who doesn’t see the whole picture”. Oh yeah and “know it alls”
Anonymous Coward
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United States
05/17/2022 11:48 PM
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Re: What to do when inflation rages
As if you’re the only one who took economics

The Mensa thing was to INFLATE your non-existent credibility.

Wanna talk about inflation? Look in the mirror.

You’re more inflated than a hot air balloon
 Quoting: Anonymous Coward 77410893


whatanassh0le1
 Quoting: Don Draper from Nantucket


Yes I know he is
Anonymous Coward
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05/17/2022 11:50 PM
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Re: What to do when inflation rages
There is NO inflation you moron
 Quoting: Anonymous Coward 78133455


shill
Anonymous Coward
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05/17/2022 11:51 PM
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Re: What to do when inflation rages
I agree with you OP but these boards are getting hit really hard with shills for the fed. That tells me we're closer to the breaking point that I originally thought.

They literally hunt out every honest call and tear in like a pack of wild animals. They're getting scared now.
 Quoting: Anonymous Coward 80562797


hesright





GLP