Inflation/hyperinflation

[hotbmw]

once the USD dives hold on for the ride.

what effect will this have? inflation?

 

[Glen48]

Every thing is based on the USD however the USA can't keep borrowing money from over seas there has to be a limit, the yanks borrowed money to help after Katrina and look how much they have held their hand out for since.
China and others hold a lot of USD having sold a lot of Chinese made good to USA since the Western world has stopped buying Chinese good look what has happened to their economy in a short space of time. I assume once USD starts going down they will want out the only answer for USA is to put up IR's to attract other money back to USA. Hence inflation

 

[hotbmw]

thanks for your simple explanation Glen.
and US inflation, will it have a follow on effect here also or?

 

[Alan Shearer]

2.
what happens at the end of the inflationary period, it slowly drops in value back to fair value or do wages increase in line with the new asset value?

3.
if the US has defaltion issues in the next year or so does it follow on to us or does there deflation become our inflation?

thanks
Rob

Interesting questions. I would like to know this also. Does anyone know?

AS

 

[tech/a]

I always hear this bandied about by the property bulls.

I have no idea what happened to property during this time outside of Perth, but what happened to property in our last inflationary period... 87-91-2?

Chops.
I was a statistic of the late 80s.
Heavily into Commercial and industrial property my tennents were going broke and i was selling at fire sale prices to satisfy banks and the 18% interest + 6% default interest due to my busines not being able to cashflow the debt.

Learnt a lot,cost me a marriage a house and all but one property (The one my business owned.) Sold that 10 yrs later and invested all of it into Residential---man am I glad I did.

 

[Lancelot]

well im a small business owner and i see 2009 as a year to just save the business. there wont be any savings or high income.

but i do have an investment property im trying to sell now and 50k cash.

sorry for my questions but im trying to make some right decisions to survive. to come out of this in a smart way. thats why i was wanting to learn more....

Sell the hot BMW

 

[divs4ever]

RBA 40-60 hike vs hold, and you can forget about a rate cut in the next 12 months​

RBA 40-60 hike vs hold, and you can forget about a rate cut in the next 12 months

Learn how likely an interest rate hike by the RBA is (hint: it's becoming increasingly likely!), and what is the timing for the first interest rate cut (hint: don't hold your breath!).

www.marketindex.com.au