Author Topic: Anyone read Dying of Money? Thoughts on hyper-inflation for US economy?  (Read 3050 times)

pac_NW

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Anyone read Dying of Money?  Thoughts on hyper-inflation for US economy?

matchewed

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Wake me up when there's evidence of an inflation problem in the US. Until then I'm not going to worry about that which I can't control.

As for if hyper-inflation hits; well how I'll cross that bridge is to keep working and saving during my accumulation phase. If it hits during FIRE then I'll look at my plans, I'll run numbers to come up with a best guess as to whether it will affect me and take appropriate measures. Those measures can be spend less, pick up some part time work...etc.

And isn't a discussion like this just like all the other concerns?

Rural

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The last time there was major inflation in the US, we fell back on the garden for most of our food, made substitutions for things that got too expensive (more potatoes, less bread) and limited driving to the absolute essentials (this was the oil crunch of the 70s, and it wasn't just prices but availability-- it was much more fun to stay home than to sit in the lines at the pumps that had fuel). Basically, refocused on frugality, found entertainment at home, and made it through.


If it happens, which I am by no means sure of, it has happened before and isn't the end of the world. Also, it will pass, given time. You just deal with one thing at a time, and as long as you don't panic, you make it okay.

desrever

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The last time there was major inflation in the US, we fell back on the garden for most of our food, made substitutions for things that got too expensive (more potatoes, less bread) and limited driving to the absolute essentials (this was the oil crunch of the 70s, and it wasn't just prices but availability-- it was much more fun to stay home than to sit in the lines at the pumps that had fuel). Basically, refocused on frugality, found entertainment at home, and made it through.

I agree with this. So, the single best thing you can do to prepare yourself for hyperinflation is to get your soil tested for lead.

TomTX

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wtjbatman

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The last time there was major inflation in the US, we fell back on the garden for most of our food, made substitutions for things that got too expensive (more potatoes, less bread) and limited driving to the absolute essentials (this was the oil crunch of the 70s, and it wasn't just prices but availability-- it was much more fun to stay home than to sit in the lines at the pumps that had fuel). Basically, refocused on frugality, found entertainment at home, and made it through.

I agree with this. So, the single best thing you can do to prepare yourself for hyperinflation is to get your soil tested for lead.

I actually went in the opposite direction, and had my backyard bomb shelter surrounded by lead for extra protection when hyper-inflation hits and yada yada yada nuclear war.

electriceagle

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Wake me up when I get to pay my fixed rate mortgage with one hour of work.

Bookworm

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Do you mean The Death of Money by Jim Rickards? I have read it. I think it is absolutely reasonable to expect a major reset of the international monetary system to one that is less favorable to the United States. One reason I tend to like Rickards is that he is fairly level-headed about it. He has seen a LOT and is extremely knowledgeable about the nuts and bolts and ins and outs of the monetary system and the financial world generally. He's not afraid to go against common wisdom, but he's also calm. He advocates staying financially "nimble" while not freaking out about imminent social collapse and 1920s Weimar hyperinflationary doom. If there is a collapse, there will be a global political and monetary arrangement hammered out, a la Bretton Woods, as opposed to riots in the streets. Will the U.S. lead it? I don't know. Will we come out smelling like a rose and continuing to assert the kind of hegemony we have for the last century? Probably not. But doom? No. That seems like a reasonable approach to me, or at least a strong argument for diversification. Deflation is as likely as inflation, says Rickards, and even if hyperinflation occurs, it is just as likely to follow a period of deflation as to not. In any case, I don't think we really have any Rudolph Havensteins in control these days.

That isn't to say that there's not SOME merit to the "prepper" mentality. It's all about being flexible, nimble in a changing environment.  Even if the Golden Hordes aren't roaming the country looting and causing mayhem, there are natural disasters, power outages, etc. and being set up to withstand a few weeks of interruption of the transportation system isn't a bad idea. I was really struck by an interview with a Japanese citizen about two weeks after the earthquake/tsunami, who was down to a jar of pickles and a can of fish. The stores were, of course, empty. Hey, I live in California. I remember 1994. It doesn't hurt to have a little extra food in the house. If such a thing happened here, my family would get mighty tired of spaghetti, canned beans, and rice, but we wouldn't starve.
« Last Edit: June 29, 2014, 03:48:33 PM by Bookworm »