The Inflationary Holocaust Happening Anytime Soon

purch

Normally in a recession inflation is small or even goes negative

Which recessions are you referring to ??

The highest inflation levels recorded over the last 40 years have been during Economic downturns or recessionary periods !!!!

wombat42_2

bazster wrote: »

Of course he is: the media love lurid sensationalism.

We are talking the sophisticated financial media here such as Bloomberg not tabloids.

innovate

bazster wrote: »

So who you gonna believe? They can't all be right.

Absolutely.

I am tempted not to listen too much Jim Rogers because somehow I can't help thinking he hasn't quite got his facts right. For instance, I had not heard so far that there is "ceaseless overprinting of currency" by central banks - what have I missed? Also don't like his style, he is using a lot of sensationlist language, more suited to a tabloid journalist than someone whose opinion on the way forward I would value.

"In this difficult period, do nothing and hold nothing but gold. Only gold, the ultimate asset that has survived the longest in human history, can save us now." I am no expert, but this sounds a bit naive to me - investments in gold seems alright, but "only gold" won't make the world go round for very long because for starters, billions of people won't have gold to buy their daily loaf of bread.

I am far more inclined to accept what I perceive as measured assessments from people like Paul Krugman, this year's winner of the Nobel Price for Economics
(for example, http://www.nytimes.com/2008/10/13/opinion/13krugman.html?_r=1&oref=slogin, and lots more in his NY Times column).

There are rumours that if Obama becomes President, Krugman will be part of the White House crew. Somehow I quite like the idea.

wombat42_2

innovate wrote: »

Absolutely.


"In this difficult period, do nothing and hold nothing but gold. Only gold, the ultimate asset that has survived the longest in human history, can save us now." I am no expert, but this sounds a bit naive to me - investments in gold seems alright, but "only gold" won't make the world go round for very long because for starters, billions of people won't have gold to buy their daily loaf of bread.

Jim Rogers didnt say that. It was Thomas Tan. Jim Rogers is most keen on agricultural commodities, He suggests that people buy their own tractor and own some farm land.

Reaper

purch wrote: »

Which recessions are you referring to ??

The highest inflation levels recorded over the last 40 years have been during Economic downturns or recessionary periods !!!!

You can see what I mean in the chart here. Inflation has often been high before a depression which then tends to damp it down. The main exception is the oil crisis for obvious reasons.

The picture is complicated recently by governments attempting to spend their way out of recession which dilutes the graph, but you can still see the trend.

purch

You can see what I mean in the chart here

Yeah...

...and as the last 40 years takes us back to 1968............

bazster

wombat42 wrote: »

We are talking the sophisticated financial media here such as Bloomberg not tabloids.

As the person above rightly said:

"he is using a lot of sensationlist language, more suited to a tabloid journalist than someone whose opinion on the way forward I would value."

Nothing sophisticated about it at all, quite the opposite.

pioneer

I'm investing in Tulip Bulbs before they come round again & if they don't we can always have Tulip stew for a few years plus we may be in a depression but the place will look beautiful !

wombat42_2

bazster wrote: »

As the person above rightly said:

"he is using a lot of sensationlist language, more suited to a tabloid journalist than someone whose opinion on the way forward I would value."

Nothing sophisticated about it at all, quite the opposite.

Well there is plenty of drama in the US to be sensationalist about and he is an anti establishment figure. He is also saying that his philiosophy is basically dead simple - just supply v demand.

Reaper

purch wrote: »

Yeah...

...and as the last 40 years takes us back to 1968............

You finish with "....." without actually making your point. Looking again at the chart and even if you restrict the view to just 40 years the result is the same. Ignoring the oil crisis (because that was caused by the sudden increase in oil prices so inflation caused recession not the other way round) the trend still clearly shows inflation low or declining during recession years.