Coronavirus

[WolfmanOz]

It might take you a long time to be completely over it - even if life returns 100% back to normal. We have lots of minor irritations over here - petrol prices are up, lumber prices are through the roof, there are few new cars and used car prices are astronomical, and for my business there are random shortages of imported products (tequila, scotch, cognac, canadian whisky) and some domestic beers. Mostly these are not serious problems - there are usually alternatives, but the biggest change is that a lot of people seem to have left the workforce. Sectors of the economy that had laid people off - especially restaurants/fast food - just cannot find enough new workers.

Put together these factors are causing an increase in prices so that inflation (however inevitable/unavoidable) may well become a big political issue.

The inflation genie is one that's going to raise it's ugly head in the not-to-distant future.

The amount of debt racked up by Govts (along with personal debt) across the globe is eye-wateringly staggering and coupled with low/zero interest rates will eventually lead to rapid inflation - you'd be looking at best a return to the 70s when annual double-digit inflation, but it could even get worse.

 

[WolfMan]

The inflation genie is one that's going to raise it's ugly head in the not-to-distant future.

The amount of debt racked up by Govts (along with personal debt) across the globe is eye-wateringly staggering and coupled with low/zero interest rates will eventually lead to rapid inflation - you'd be looking at best a return to the 70s when annual double-digit inflation, but it could even get worse.

I hope you are wrong but I fear you may be right. I've worried about what happens when the next proper crisis comes since they cut interest rates to essentially zero in 2008/2009. It always seemed to me they were just kicking the can down the road.

Now they can't cut interest rates any more to stimulate the economy if there is a bad recession, and if inflation starts running out of control raising them will cause devastation to the the millions of people and businesses who've mortgaged and borrowed themselves close to the limits of what they can afford. Couple this with the current trend towards more authotarian government around the world and we could be in for a really fun few years.

 

[WolfmanOz]

I hope you are wrong but I fear you may be right. I've worried about what happens when the next proper crisis comes since they cut interest rates to essentially zero in 2008/2009. It always seemed to me they were just kicking the can down the road.

Now they can't cut interest rates any more to stimulate the economy if there is a bad recession, and if inflation starts running out of control raising them will cause devastation to the the millions of people and businesses who've mortgaged and borrowed themselves close to the limits of what they can afford. Couple this with the current trend towards more authotarian government around the world and we could be in for a really fun few years.

Exactly !

The house of cards will eventually collapse . . . not sure when, but I'd expect sometime between 2025-2030.

The impact will be pretty well across all the world (and I don't think it is doomsday scare-mongering), so they'd be no way to escape it.

 

[sycophantia]

Well you pair are a bundle of laughs on a nice sunny summers morning

 

[lemonjelly]

Exactly !

The house of cards will eventually collapse . . . not sure when, but I'd expect sometime between 2025-2030.

The impact will be pretty well across all the world (and I don't think it is doomsday scare-mongering), so they'd be no way to escape it.

they said similar about the GFC in 2008.

 

[WolfmanOz]

they said similar about the GFC in 2008.

The GFC is just a blip compared to the tsunami of debt and eventual defaults that is coming.

Simply the debt to GDP ratio (a crude but simplistic reference point) is just not sustainable for much longer.

 

[EdgeOfTheAlps]

I've got plenty of rope and strong beams if anyone needs 'em

 

[AndyWolves]

If we all think interest rates will boom then it's probably a good idea to pay off as much debt as we can now.

Go into the interest rate boom with a sack of cash to get interest on.

 

[WolfMan]

If we all think interest rates will boom then it's probably a good idea to pay off as much debt as we can now.

Go into the interest rate boom with a sack of cash to get interest on.

Only problem with that is that if interest rates do boom, it'll because inflation has, meaning that stack of cash will be worth with alot less.

 

[AndyWolves]

Only problem with that is that if interest rates do boom, it'll because inflation has, meaning that stack of cash will be worth with alot less.

Most would be worth less after inflation, interest on cash would go someway towards mitigating that.

Obviously the best thing to buy would be property, it pretty much always is.

 

[WolfMan]

Most would be worth less after inflation, interest on cash would go someway towards mitigating that.

Obviously the best thing to buy would be property, it pretty much always is.

Indeed, I can't ever see there being enough houses to fulfill demand here.

Other thing you could do is buy gold, that's a traditional hedge against inflation apparently.

 

[Wombat del combate]

I've always wondered about buying gold, in the sense that were the global financial system were to crash I can't quite see it being as simple as collecting or having your ingots delivered.

 

[AndyWolves]

I've always wondered about buying gold, in the sense that were the global financial system were to crash I can't quite see it being as simple as collecting or having your ingots delivered.

Nip down smack converters and clear them out

 

[WolfMan]

I've always wondered about buying gold, in the sense that were the global financial system were to crash I can't quite see it being as simple as collecting or having your ingots delivered.

I was looking into it a while ago, you can buy it from the Royal Mint and it gets delivered to you straight away I think.

 

[MARKakaJIM]

I was looking into it a while ago, you can buy it from the Royal Mint and it gets delivered to you straight away I think.

Couple of people I work with buy sovereigns from the mint. One had about a grands worth left unattended on his doorstep by Hermes a couple months back.

 

[Keef]

Would inflation shaft crypto currency as well or would all those smug twats that bought it be even smugger? The latter probably.

 

[WolfMan]

Would inflation shaft crypto currency as well or would all those smug twats that bought it be even smugger? The latter probably.

No idea to be honest mate, I was reading a story the other day about a bloke in America who did a bit of work for a company years ago and they paid him in bitcoin. At that point it wasn't worth anything but it's now worth something like quarter of a billion, but he can't remember the password to access it. Apparently you only get 10 attempts and he's tried all the ones he thinks it could be.

 

[AndyWolves]

No idea to be honest mate, I was reading a story the other day about a bloke in America who did a bit of work for a company years ago and they paid him in bitcoin. At that point it wasn't worth anything but it's now worth something like quarter of a billion, but he can't remember the password to access it. Apparently you only get 10 attempts and he's tried all the ones he thinks it could be.

Man Who Accidentally Threw Away 7,500 Bitcoins on Hard Drive Has New Plan to Retrieve His BTC – Featured Bitcoin News

The British man who threw away a computer with 7,500 bitcoins on its hard drive has a new plan recover the BTC from the city landfill.

news.bitcoin.com

 

[WolfMan]

Man Who Accidentally Threw Away 7,500 Bitcoins on Hard Drive Has New Plan to Retrieve His BTC – Featured Bitcoin News

The British man who threw away a computer with 7,500 bitcoins on its hard drive has a new plan recover the BTC from the city landfill.

news.bitcoin.com

Shiiiiiit man, imagine that!

That's why I don't think I could ever buy them, I can't remember passwords at the best of times. Are they literally just stored on a hard drive? What if something happens to it. I bought a hard drive from Curry's a while ago and it packed up after about two months, I was gutted and all I had it on it was some films I'd downloaded.

 

[WolfMan]

The Bitcoin millionaire who lost it all

Owning Bitcoins is a nervewracking experience. Stefan Thomas lost millions because he forgot his password.

www.google.com

This was the guy I was on about.