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Re: Housing Bubble Correction Update: Here IS the jobs crash (Part I)
This is one of my issues with Ka-Poom. If it becomes obvious that inflation hedges are required, then those assets should eventually become inflated and not just reflect the exact offset that you would expect from a theoretical approach. Investor sentiment and movement of hot money might move those assets to highly inflated prices - at least that is what market history tells me during highly inflationary times. I am not talking about speculating, but acknowledging that the more likely outcome is that these inflation hedges will more than reflect the offset. Comments?
The other issue I have is this tossing in of the towel I keep hearing - i.e. you said we are all poorer in this country whether inflation comes or a continued deflation happens. If the US dollar decreases less than other currencies or even if it does not I would expect commodity based currencies to provide a far greater level of protection for similar reasons - they should not only offset inflation but there should be capital flight to those currencies.
Sure capital controls may prevent you from doing this later if one continues to reside in the US, however there will still be plenty of equities you can buy for companies which reside wholly outside of the US or at least derive their income predominantly from outside the US, but trade on US exchanges.
Moreover, why do some many US citizens think they are just stuck? For gawds sake we are all educated. You can get a job in Canada and just move there and protect yourself, that is assuming you buy into my argument.
Yes, I know it is more difficult to attain a job and will be increasingly difficult, but if you are here at iTulip, chances are you are a lot smarter than others, :-)
Originally posted by FRED
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The other issue I have is this tossing in of the towel I keep hearing - i.e. you said we are all poorer in this country whether inflation comes or a continued deflation happens. If the US dollar decreases less than other currencies or even if it does not I would expect commodity based currencies to provide a far greater level of protection for similar reasons - they should not only offset inflation but there should be capital flight to those currencies.
Sure capital controls may prevent you from doing this later if one continues to reside in the US, however there will still be plenty of equities you can buy for companies which reside wholly outside of the US or at least derive their income predominantly from outside the US, but trade on US exchanges.
Moreover, why do some many US citizens think they are just stuck? For gawds sake we are all educated. You can get a job in Canada and just move there and protect yourself, that is assuming you buy into my argument.
Yes, I know it is more difficult to attain a job and will be increasingly difficult, but if you are here at iTulip, chances are you are a lot smarter than others, :-)
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