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Deflation Is Coming

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Deflation is not understood that well, but debt deflation is coming upon us. What to to hold in deflationary period? USD Cash

http://www.deflation.com/

Deflation is oozing and flowing through the gaps, soaking heavily into the book and real market values of distorted high asset values. Even whilst inflation is on the lips of the masses.

Going to be a few surprises for the property is everything. Government has the choice of deflation with a lot of pain but survival, or inflation and destruction. Time of smiling politics, begun under Labour in 1997, to try and please everyone is coming to an end.

Hold anything but exposure to UK property in my opinion. Going to ride it down all the way, all in. Got to have belief in money-assets winning out over those holding property.

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We had this argument back in 2008 when according to some, deflation was the only outcome.

Unfortunately for them, as was pointed out by the rest of us at the time, fiat currency allows the powers that be the magick up as much money as they desire in order to stave off deflation ... as has been evidenced by the stats over the last five years.

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as has been evidenced by the stats over the last five years.

It's tapering off. It's like someone using all their energy to tread water.

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Wait till you see Mark Carney's official arrival. QE will be all happening again, big style.

My car insurance and house insurance dropped last 2 years.

With my diesel car I'm paying 80% of what I would be for Petrol. I've stopped spending because stuff is too dear. Was looking at flights yesterday for a holiday, decided not to go because the 100 quid easy jet flights are now £250....something has got to give.

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I'm not holding something that people are simply giving themselves from nowt. The sheer principle of it makes me rage. At best all those *****ers who have been printing and leveraging their own bank credit as money equivalent will get it turned into real cash, whilst you had to work your **** off for years to get a fractional pittance of this self-enrichment NO! NO! NO! I will not play.

And good luck with the whole deflation thing (was in that camp once), fiat has ever been allowed to deflate into collapse - always wiped v swiftly by a wave of very high inflation. ka-poom!

You might get a small window where people need cash and simply cant get it and will be selling stuff dirt cheap for phyzz cash. In a matter of days that'll turn into no-one using cash, as it goes first from being too scarce to be workable to being everywhere in rapidly growing amounts.

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My car insurance and house insurance dropped last 2 years.

With my diesel car I'm paying 80% of what I would be for Petrol. I've stopped spending because stuff is too dear. Was looking at flights yesterday for a holiday, decided not to go because the 100 quid easy jet flights are now £250....something has got to give.

That's part of the hidden deflation trap isn't it? Businesses putting up their prices against a contracting economy, and everyone saying 'Oh it's inflation.' Yet in the background, number of vehicles on the road declines for the first time in decades. Fewer people buying at the higher prices sought by businesses, affecting their profit margins, an in some instances, ability to keep trading. That's what I see occurring in the background.

Wait till you see Mark Carney's official arrival. QE will be all happening again, big style.

The same Carney who couldn't get concerned-outlook Canadian businesses, with their big cash reserves stashed away, to invest in the economy. QE maybe. Any velocity? No.

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Deflation will come like a thief in the night. It robs you of everything and very sudden. Have a look at Cyprus. Money gone, cash gone overnight. Why? The cash was needed to pay off debts. Cash becomes in demand and there is plenty of unsold property. What asset will rise and what assets will fall.

QE is not even off setting the cash destroyed by bad debts.

Gold bugs and hyper inflationists are wrong footed.

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We had this argument back in 2008 when according to some, deflation was the only outcome.

Unfortunately for them, as was pointed out by the rest of us at the time, fiat currency allows the powers that be the magick up as much money as they desire in order to stave off deflation ... as has been evidenced by the stats over the last five years.

Yes, it is very much like a flashback to and prior 2008.

Why would the CBs allow deflation to occur, it would be contrary and undo all their work in the last 6 years of QE, TARP and ZIRP?

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Deflation it has to be when the pound in peoples pockets does not purchase what it used to purchase wages are stagnant or falling and people choose not to take on ever increasing amounts of copious debt....they spend their money on what they have to spend their money on......the other extras that would and could be purchased when flushed competition will drive the price down.........the only way to beat this is more immigration and tourists, people that have money to spend so as to import cash from elsewhere.......those living here with too much to spend export their money to better climes thus creating a bigger deflation problem. ;)

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Yes, it is very much like a flashback to and prior 2008.

Why would the CBs allow deflation to occur, it would be contrary and undo all their work in the last 6 years of QE, TARP and ZIRP?

TARP has almost been completely paid back so it is neutral.

ZIRP has allowed to cost of debt financed assets not implode as fast and stabilize them. ZIRP also made pension payouts drop and peoples savings to erode. This means saving for retirement gets harder and requires more cash (cash taking out of velocity).

QE money has not been put to use but has been hoarded by banks and in bad times even be put as a deposit with the central banks.

For all the QE in the UK and 0.5% interest rates we have had 0.1% growth over the last 4 years. Wow wow wow. What we have seen is a government more and more determined to grab a hold of your cash in higher taxes.

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A new monetary system is coming. Gold will play a part in that system. The current paper price is irrelevant.

Yes go with some gold coins to pay for your food. Gold will drop with deflation. Cans of tinned beans are more useful as payment then gold.

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Yes go with some gold coins to pay for your food. Gold will drop with deflation. Cans of tinned beans are more useful as payment then gold.

Fertile land, sunshine and rain. ;)

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Deflation will come like a thief in the night. It robs you of everything and very sudden. Have a look at Cyprus. Money gone, cash gone overnight. Why? The cash was needed to pay off debts. Cash becomes in demand and there is plenty of unsold property. What asset will rise and what assets will fall.

QE is not even off setting the cash destroyed by bad debts.

Gold bugs and hyper inflationists are wrong footed.

Cyprus is a small fish that is constrained by the euro straight jacket at the whims of the ECB, that does not compare to the greater picture and the what is happening across the world.

Where is my deflation and assets at knock down prices?

Those "wrong footed" gold bugs :lol: would be the same gold bugs who warned about confiscation of cash savings, curreny controls with the need to get one's money out of the banking system.

Edited by Take Me Back To London!

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You forgot ammo. You need this to keep thieves away.

...what thieves?.......there is enough land to feed everyone....pay them with food, then they would have an high interest in protecting the food so as not to be stolen.... ;)

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Cyprus is a small fish that is constrained by the euro and at the whims of the ECB, that does not compare to the greater picture and the what is happening across the world.

Where is my deflation and assets at knock down prices?

Those "wrong footed" gold bugs :lol: would be the same gold bugs who warned about confiscation of cash savings, curreny controls with the need to get one's money out of the banking system.

Yes hence why you need cash, Not cash in the bank. Deflation is already part of Japan for ages, it is also part of southern Europe. Those debts will be written off. What will happen is your pension fund will have to write down these investments. There goes part of your future cash.

Why can't we see that 1930 depression is written all over us. The cycle is only longer and will be deeper.

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...what thieves?.......there is enough land to feed everyone....pay them with food, then they would have an high interest in protecting the food so as not to be stolen.... ;)

Ammo sales went up at the first credit crunch. People will do anything when they are hungry..

http://propertymarbellaapartments.com/blog/2013/01/29/spanish-agriculture-hit-by-wave-of-thefts/

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Deflation is not understood that well, but debt deflation is coming upon us. What to to hold in deflationary period? USD Cash

http://www.deflation.com/

I hope so but I doubt it. I would think inflation is what TPTB will engineer, though I am woefully exposed to it,

Still, I hope you're right!

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It's tapering off. It's like someone using all their energy to tread water.

So TPTB simply amp up the money printing and 'stimulus'. It has long been pointed out that printing is in many ways analagous to drug use .. Once you start shooting up it invariably leads to a need for bigger and bigger hits to stave off withdrawal symptoms.

There won't be unconstrained deflation until the system finally implodes, it simply doesn't suit the vested interests to let it happen. The only deflation likely to happen will come in the form of the 'pump and dump' operations that the financial system uses to screw money out of the rubes. ie. Stoke a bubble, get in early, dump your assets, let a bust happen, buy up assets cheap ... ad infinitum.

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"They" have been fighting deflation for the last few years and they continue to do so. We live in deflationary times.

...yes....lower and lower interest rates, printing money, buying debt, excessive credit being pumped out into the economy all at little avail.......low and stagnant growth = deflation........high growth and gdp = inflation.

We are having to sit this one out to wait for the other side to catch up....then full speed ahead. ;)

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  • 242 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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