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Tired of Waiting

Inflation: "governments Confiscating Their Citizens' Wealth"

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"By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens." (Keynes, 1919)

Keynes, in 1919, was against inflation. The irony is that his theories were behind the Latin America inflation crisis of the 70s and 80s, and may trigger another now. See what he wrote then:

(In "The Economic Consequences of the Peace", 1919, by John Maynard Keynes)

"Lenin is said to have declared that the best way to destroy the capitalist system was to debauch the currency. By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens. By this method they not only confiscate, but they confiscate arbitrarily; and, while the process impoverishes many, it actually enriches some. The sight of this arbitrary rearrangement of riches strikes not only at security, but at confidence in the equity of the existing distribution of wealth. Those to whom the system brings windfalls, beyond their deserts and even beyond their expectations or desires, become 'profiteers,' who are the object of the hatred of the bourgeoisie, whom the inflationism has impoverished, not less than of the proletariat. As the inflation proceeds and the real value of the currency fluctuates wildly from month to month, all permanent relations between debtors and creditors, which form the ultimate foundation of capitalism, become so utterly disordered as to be almost meaningless; and the process of wealth-getting degenerates into a gamble and a lottery.

Lenin was certainly right. There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose."

http://en.wikiquote.org/wiki/John_Maynard_Keynes

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"By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens." (Keynes, 1919)

Keynes, in 1919, was against inflation. The irony is that his theories were behind the Latin America inflation crisis of the 70s and 80s, and may trigger another now. See what he wrote then:

(In "The Economic Consequences of the Peace", 1919, by John Maynard Keynes)

"Lenin is said to have declared that the best way to destroy the capitalist system was to debauch the currency. By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens. By this method they not only confiscate, but they confiscate arbitrarily; and, while the process impoverishes many, it actually enriches some. The sight of this arbitrary rearrangement of riches strikes not only at security, but at confidence in the equity of the existing distribution of wealth. Those to whom the system brings windfalls, beyond their deserts and even beyond their expectations or desires, become 'profiteers,' who are the object of the hatred of the bourgeoisie, whom the inflationism has impoverished, not less than of the proletariat. As the inflation proceeds and the real value of the currency fluctuates wildly from month to month, all permanent relations between debtors and creditors, which form the ultimate foundation of capitalism, become so utterly disordered as to be almost meaningless; and the process of wealth-getting degenerates into a gamble and a lottery.

Lenin was certainly right. There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose."

http://en.wikiquote.org/wiki/John_Maynard_Keynes

Well, as I keep saying the best time to buy a house is when interest rates and inflation are high, the worst time is when they are low.

Not long to wait now I think.

:blink:

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Well, as I keep saying the best time to buy a house is when interest rates and inflation are high, the worst time is when they are low.

Not long to wait now I think.

:blink:

Depends how long the fixed rate deal is for...

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Depends how long the fixed rate deal is for...

Well on another thread everyone seemed to think that trackers were the dogs B*llocks because base rate is going to stay well below 2% for the next five years - Ha, Ha bloody Ha!

If you can get a fix at 5% for the next ten years I would snatch their arm off, because deals like this won't be around for much longer.

IMHO.

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If you can get a fix at 5% for the next ten years I would snatch their arm off, because deals like this won't be around for much longer.

Yes, *IF* we are sure that we'll have inflation, then I think we have two best moments to buy:

1- Immediately - whilst there are still around a few 10 years fixed for around 6%. But these will go up soon, and by a lot.

2- in 3-5 years (?) - after inflation sets in, interest rates go up, and house prices crash.

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