Trump Warns "Massive Inflation" Coming...Prepare

[lds2]

"Billionaire Donald Trump says the U.S. economy is poised for “massive inflation” and is warning investors to take steps now to protect themselves. In the gripping CNBC interview, Trump also told investors they should not trust official government statistics. He even questioned the “official unemployment” numbers. “It’s over 20 percent. It’s not 8.3 percent,” Trump said. Trump also thinks skyrocketing oil prices will cripple the U.S. economy. "... But Trump isn’t the only expert warning the U.S. economy may go off the cliff. Robert Wiedemer, author of the New York Times best-selling book Aftershock, stated in a recent interview, “The data is clear, 50% unemployment, a 90% stock market drop, and 100% annual inflation . . . starting in 2012.” ...

This wasn’t the first time Wiedemer’s predictions hit a nerve. In 2006, he and his team of economists accurately predicted the four-bubble meltdown in the housing, stock, private debt, and consumer-spending markets that almost sank America. Regardless of his warnings and survival advice, Bernanke and Greenspan were not about to support Wiedemer publicly, nor were the mainstream media. The question Americans need to ask themselves is this: Even if half of Trump and Wiedemer’s predictions come true, ARE YOU PREPARED?

...

Massive Inflation Coming Warns Donald Trump

Edited March 19, 2012 by lds2

[NeuroTypical]

Trump isn’t the only expert warning the U.S. economy may go off the cliff...

...

Even if half of Trump and Wiedemer’s predictions come true, ARE YOU PREPARED?

These are two rookie mistakes lots of folks make. I forget the name of the logical fallacy, but the basic notions are:

1. In an arena where so many experts predict so many things, your argument gains absolutely nothing by holding up two of them as persusasive evidence. In fact, if your argument hinges on two economists, it's an indication of the weakness of your case. And if one of those economists is Donald Trump, well...

2. The notion that 'even a stopped clock is right twice a day' doesn't help your case either. We live in a world where two things are always true: First, the world's varying economies are always in flux. Second, doomsayers are predicting a near-term catastrophic event 100% of the time. There is never a point in time when you cannot find a doomsayer saying the end is near. 2009 was a good year on this board for inflation doomsayers.

Anyway, all that said, I am in fact preparing for high inflation, and have been thinking our time is on the horizon. I'm not an expert, but I am availing myself of the copious amounts of counsel from our church leaders to be prepared for a variety of hard times. Stay out of debt, have the ability to cut expenses drastically if necessary, have alternate ways to earn money, pay tithing, and other soundbytes of provident living, are good ideas, whether you figure it's inflation, or zombies.

Edited March 19, 2012 by Loudmouth_Mormon

[Tyler90AZ]

I don't look at Trump as the Ace of spades on economics, but I believe inflation will go up. The tradeoff if you want low unemployment is high inflation. It is nearly impossible to balance those two things perfectly. That is why if I had excessive amounts of money I would invest in property or other tangible things.

[annewandering]

A lot of economy depends on market temperment. If even one respected or believed 'expert' can convince people of a direction, then yes it will go that way.

Now I dont believe Trump but if the majority of americans do then what is their reaction? Hoarding? :) So what happens with hoarding? Demand exceeds supply. What happens then? Well prices go up. Then what do you have? Yep. Inflation.

Wow look at that! Trump was right.

[Vort]

Well prices go up. Then what do you have? Yep. Inflation.

Prices going up is not the same as inflation. Inflation refers to the devaluation of currency.

[Guest]

Inflation, deflation... blech. I believe in INSULATION from either inflation or deflation.

My dad likes to play stock market and currency trading. He makes money regardless of whether the stock prices go up or the stock prices go down or if a certain currency inflates or deflates. He's quite good at it... pretty good for a chemist who spent most of his career life making beer.

Edited March 19, 2012 by anatess

[annewandering]

Prices going up is not the same as inflation. Inflation refers to the devaluation of currency.

And why, exactly, does the currency become devalued? Is it because more is needed to buy the same thing that less was needed before?

[Vort]

And why, exactly, does the currency become devalued? Is it because more is needed to buy the same thing that less was needed before?

Consider this: Earlier in my life, a loaf of bread cost maybe 20¢. Today an equivalent loaf of bread costs maybe $2. Do you believe that today's bread is worth ten times more than before?

Back then, a professional's salary might be $20,000. Today, the equivalent salary might be $200,000. Are today's professionals worth ten times what they were earlier?

In both cases, the answer is that money is inflated -- that is, it's worth much less, only a tenth of what it was before.

In contrast, consider commodity prices of, let's say, corn. Let's suppose it's a bumper crop year and we are flush with corn. What's the price of corn? It will be relatively low because the supply is abundant. The farmers will complain that they're going broke because the price of corn is so low, and will demand government subsidies to help them out.

Now the next year, there is a series of disasters and bad weather that cut the corn harvest in half. Many fields are destroyed, and corn becomes much more scarce. What's the price of corn? It will be relatively high because of scarcity. The farmers will complain that they're going broke because of their poor harvest, and will demand government subsidies to help them out.

The difference is, in the latter case, it is not inflation moving the price of corn. (Or at least, inflation is only a minor reason.) It's supply and demand in action.

In other words: When prices go up because of scarcity, that is not inflation. Not at all, not in any sense. Inflation refers to money becoming worth less than it was, not to a commodity becoming worth more and therefore requiring more money to purchase it.

[annewandering]

I dont think it is possible to divorce one from the other. If a loaf of bread is costing 2 dollars then that 2 dollars is worth what the 25 cents that bought the loaf of bread 50 years before. The bread and the dollar are worth the equivalent of what they were 50 years before.

So why does it go up? One factor is that the money traders are trying to cash in on the temporary differences in perceived value while one catches up to balance, in the market, again. Or down as the case may be.

[Vort]

I dont think it is possible to divorce one from the other. If a loaf of bread is costing 2 dollars then that 2 dollars is worth what the 25 cents that bought the loaf of bread 50 years before. The bread and the dollar are worth the equivalent of what they were 50 years before.

So why does it go up? One factor is that the money traders are trying to cash in on the temporary differences in perceived value while one catches up to balance, in the market, again. Or down as the case may be.

I am not an economist, and I have neither the credentials nor the inclination to try to convince you. But a little pondering on the matter should be enough to convince you that the two are indeed separate and separable phenomena.

Consider a gold-standard economy, more or less inflation-proof. Since the value of money is tied to the value of a precious metal, and since (recent history notwithstanding) the value of the precious metal is relatively stable across years or even centuries, such an economy does not experience inflation -- at least not in the same way we do. Yet you still see prices fluctuating in a gold-standard economy. Why? Because the perceived or real value of items and commodities actually changes from day to day, as supply and demand change.

Now consider a hyperinflation economy, such as we have seen in many South American and African countries over the last few decades, and even in Yugoslavia less than twenty years ago. When the government is printing up ten quadrillion dollar notes, you know the money has become worthless as a trade medium. Do you think this means that items you bought yesterday for a tenth of what you're being charged today actually are worth ten times more today? Probably not. Rather, your medium of exchange is no longer stable and you can't depend on "a dollar" to have any worth. Better to move to a de facto gold standard and trade in flour and sugar (or diamonds and gold bullion).

[annewandering]

I agree that the government can influence value by printing money above its real value. Gold is not the standard however. Product or service is the standard. Gold is the stand in the same as dollar bills are.

Yes value is not always real but perceived. Gold is such a good example of that. We place a value on it depending on our perception of its worth not its true value. Gold has no value except by perception. Ditch digging on the other hand does have real value. Because it is hard to give direct payment of ditch digging value we give money instead. Now that gold or dollar bill has value because it stands for the value of the ditch being dug.

Now that works well until people decide to speculate on the value of ditches being dug. If the digger digs more than are needed the value decreases to the speculator. If he doesnt dig fast enough then his digging becomes more valuable. Nevertheless the actual ditch digging still has the same value but the TRADE value has increased or decreased. This is where it all gets tricky and messed up by speculators and traders. :)

[Tyler90AZ]

I agree that the government can influence value by printing money above its real value. Gold is not the standard however. Product or service is the standard. Gold is the stand in the same as dollar bills are.

Yes value is not always real but perceived. Gold is such a good example of that. We place a value on it depending on our perception of its worth not its true value. Gold has no value except by perception. Ditch digging on the other hand does have real value. Because it is hard to give direct payment of ditch digging value we give money instead. Now that gold or dollar bill has value because it stands for the value of the ditch being dug.

Now that works well until people decide to speculate on the value of ditches being dug. If the digger digs more than are needed the value decreases to the speculator. If he doesnt dig fast enough then his digging becomes more valuable. Nevertheless the actual ditch digging still has the same value but the TRADE value has increased or decreased. This is where it all gets tricky and messed up by speculators and traders. :)

The dollar has no real value, it was once backed by gold, not anymore. The dollar is worth what we perceive it to be worth.

As far as the government influencing money, everything they do influences the economy. Heck, everything we do has an effect on the economy. When Bush gave a credit a few years ago it was to boost the economy. The reason he did it was because anytime somebody spends money it boosts the economy. Not only does it influence that one time, but it has a multiplier effect.

Then you could get into the Federal Reserve, which is all about manipulating the economy(to help it).

Economics is very fascinating....

Does anybody know any good pod casts regarding economics?

[annewandering]

Yes I agree the dollars value is due to perception more than to real value. It is a false economy so how can it persist if the perception is that it is valueless? It cant.

[NeuroTypical]

Does anybody know any good pod casts regarding economics?

Do Youtube videos count?

[Tyler90AZ]

I agree that the government can influence value by printing money above its real value. Gold is not the standard however. Product or service is the standard. Gold is the stand in the same as dollar bills are.

Yes value is not always real but perceived. Gold is such a good example of that. We place a value on it depending on our perception of its worth not its true value. Gold has no value except by perception. Ditch digging on the other hand does have real value. Because it is hard to give direct payment of ditch digging value we give money instead. Now that gold or dollar bill has value because it stands for the value of the ditch being dug.

Now that works well until people decide to speculate on the value of ditches being dug. If the digger digs more than are needed the value decreases to the speculator. If he doesnt dig fast enough then his digging becomes more valuable. Nevertheless the actual ditch digging still has the same value but the TRADE value has increased or decreased. This is where it all gets tricky and messed up by speculators and traders. :)

Yes I agree the dollars value is due to perception more than to real value. It is a false economy so how can it persist if the perception is that it is valueless? It cant.

Thank goodness we have a stronghold in Utah, we're good :lol:

Edited March 19, 2012 by Tyler90AZ

[lds2]

I guess I need to think about what causes price increases a little more. Like if the price of Pringles goes up because of increased gas prices...that price increase could be because the price of delivery cost more, or the price could increase at the store because there aren't as many trucks willing to deliver Pringles and so there is more demand. Hmmm...

These arguments regarding how two people saying something doesn't make it so even if they are famous, and word definitions are so lame! :) Just teasing because here I go...

Okay, so that being said...you can't hoard in a time of plenty...it is impossible! And right now we are still in a time of plenty so even if you bought 100 cases of food it would not be hoarding. If you knew 100% that we are going to see a financial meltdown or that there was going to be a famine this year...then that would be hoarding. But since we are still speculating about these things and there is no shortage of food, or gold, or dollars, it is just storing some investments away at home for a rainy day.

[lds2]

...:)

Edited March 20, 2012 by lds2

[skippy740]

While Trump may be smart... I wouldn't call him an economist by any means.

One economist I used to follow was Harry Dent... and he predicted much of the same stuff would happen by 2010. Well, he was right, and a little late, and not as drastic as he made it out to be.

[lds2]

Not reading where it says he is an "economist" it just says he is an "expert" and to me I would have to say he is that when it comes to money or at least making it...

but I wouldn't trust him to have my best interests at heart as I don't think he is a "people person" if you know what I mean...

However, as the governments of the world continue to spend money that they are creating out of thin air that is a concern as eventually ponzi type things invaribly collapse when they get too big to feed from the bottom...

[carlimac]

One thing is certain. If everyone reads these headlines and flies into a panic, then our economy will go off a cliff. I tend to trust our church leaders who have counseled us to steadily and carefully manage our resources and lay aside a cushion for times of need.

[skalenfehl]

Hey gloom and doomers, here is something to whet your appetite.

52. 5 Reasons Why American Riots Will Be The Worst In The World - YouTube

[annewandering]

Well spring is coming. Maybe they will see a bit of light!

[Smeagums]

Hello. I have lurked here for some time. I would like to add my thoughts about the economy as I have studied it for some time.

Inflation, like Vort said, is due to monetary debasement. The dollar has lost 97% of its value since 1913 when the Federal Reserve was created.

Supply and demand, as simple as they seem, run or should run the economy better than any self proclaimed market guru who really is a manipulator. The Federal Reserve being the largest probably in the world due to the power of the US dollar being the reserve currency. The US dollar will not be the reserve currency for long.

Back to supply and demand, a certain amount of dollars exits at any one time along with a certain amount of goods. If you increase the amount of dollars through money printing you now have more dollars chasing the same amount of goods. This naturally increases prices because you have more dollars, again, competing for the same amount of goods.

Housing is showing deflation because prices were artificially inflated and their is low demand and high supply. While bargains exist, prices will continue to fall.

Commodity prices however will continue to rise which hurts everyone.

But the US situation is unique compared to world history. With the electronic age, the dollar has become the world currency. If the government prints too many dollars to service the debt it will destroy its reserve status. This will be devastating for anyone who holds dollars. The world holds dollars therefore it will be devastating to the world. This is exactly why gold and silver, and oil, continue to increase.

Why would the Fed print more money? We spend roughly 3 trillion a year and rising, take in 2 trillion and have 15+ trillion in debt. These numbers are staggering. Well, where does the 1 trillion come from? Bond buying but no one, no not even China, will buy 1 trillion in bonds. Not even collectively. Therefore the government will simply print the money. This is horrible for the economy especially savers and people living on fixed incomes.

Can the Fed print forever? Technically yes but things will progressively get worse. Eventually and certainly our interest rates will rise because investors will deem bonds as risky. Our treasury bonds yield negative rates when adjusted for true inflation. Interest rates are near zero but that will change. 4-5% interest on 15 trillion is a large amount of money.

This turns into a debt spiral and simply is an insolvency issue. The United States is insolvent and if it weren't for Fed intervention we would be in a deflationary depression but because of money printing and kicking the can down the road we will experience an inflationary and almost certainly a hyperinflationary depression which is far worse than a deflationary depression.

This is a certainty unless government drastically cuts spending which will involve some hurt but it is necessary.

Gold and silver protect one from inflation. That is why you can still buy a gallon of gas for .25 and even less. In fact prices fall when using sound currency.

Thanks.

[annewandering]

Gold and silver are false economies. The only value is in real work, product or service. Money, of any type, is only the currency used to replace bartering service, product or work for service, product or work. It is not real. It is very much the same as virtual money except that you can touch paper or gold or silver. In and of themselves they have no value or very little, except the metals in the art world and electronics.

The reason gold and silver are hoarded is that there is no confidence in the government. Gold and silver can be traded for work, product or services in any culture and government, unlike the paper or coin created by any particular government.

God and silver prices ARE good indicators of citizen paranoia.

[Smeagums]

"God and silver prices ARE good indicators of citizen paranoia."

Gold and silver prices that are rising are indications of a currency that is dying. Gold and silver maintain purchasing power. You can't print more of it. In terms of gold most items have been falling for a decade now.

I understand what you are saying about them being false but the world has recognized gold and silver as real money for 5 - 6 thousand years. It has only been roughly 40 years that we've haven't had gold and silver as currency and it isn't boding well for us.

What holds value throughout time is tangible assets or commodities. Fuel, food, metals, water, livestock etc. If you wanted to invest in tangible it becomes hard to buy say $10,000 dollars worth of wheat due to storage and shelf life. Instead you could buy $10,000 dollars worth of gold. It wouldn't cost anything to store nor would you have to protect from age, weather and bugs.

Anne, gold and silver will continue to go up as more and more people realize that their dollar is buying less and less. The speculation is only a minor part of the increase of gold and silver prices. The biggest reason for the increase is monetary debasement due to government spending and Federal Reserve printing.