2012 and onwards Predictions

John_Pierpoint

Are we heading to a world of defaults and competitive devaluation of money?
In the 1930's Britain was one of the first to devalue its currency. Come to think of it Gordon Brown pulled the same trick in 2008.
But USA seems to the the expert at the moment. The Chinese "suckers" must be well pleased.

Not sure it did much for house prices though - my grandmother bought her rented house for £250, the builder in 1870 got £400 for it new.
With her husband having a steady job (policeman) she thought property prices were cheap and bought a second one; so was able to go into WW2 with two houses. Didn't have a bomb within quarter of a mile.

Though I do remember her saying that the houses next to the railway line were going for a song, as, it was thought, that the bombers used the railway lines glinting, to find their way into central London.

Would you chaps in Iran agree to stop putting uranium through those centrifugal filters, to get rid of the "light weight" stuff?

We have told you before and the situation is getting critical.

Flight2quality

John_Pierpoint wrote: »

Are we heading to a world of defaults and competitive devaluation of money?
In the 1930's Britain was one of the first to devalue its currency. Come to think of it Gordon Brown pulled the same trick in 2008.
But USA seems to the the expert at the moment. The Chinese "suckers" must be well pleased.

Not sure it did much for house prices though - my grandmother bought her rented house for £250, the builder in 1870 got £400 for it new.
With her husband having a steady job (policeman) she thought property prices were cheap and bought a second one; so was able to go into WW2 with two houses. Didn't have a bomb within quarter of a mile.

Though I do remember her saying that the houses next to the railway line were going for a song, as, it was thought, that the bombers used the railway lines glinting, to find their way into central London.

Would you chaps in Iran agree to stop putting uranium through those centrifugal filters, to get rid of the "light weight" stuff?

We have told you before and the situation is getting critical.

Yes I think we are heading to a world of defaults and competitive devaluation of money? But this time it is the entire world involved. Every fiat currency in the world is depreciating against gold and silver, and will for years yet.

We are about half way through the crash in house prices, so 50% real falls by the time we get to the bottom. But not even half way through the bull market for precious metals. The more the worlds currency supply is expanded the higher figure for real money gold and silver will be.

Flight2quality

OptionARMAGEDDON wrote: »

lending is going to get tighter than a tight thing,

I think you are right on, some talk as if we had hard to get credit and talk as if we will have easy credit again soon.

I say we still have easy credit compared to how things will be soon.

House prices will fall further when the easy credit we still have now is a thing of the past.

It doesnt matter how many people would fancy living in a certain house all that matters is who can raise the funds to buy it.

Yes population is increasing in the UK but this is true in almost every other country developing or developed. House prices are still generally falling all around the world. As credit get tighter the fall will pick up speed.

Jimmy_31

IveSeenTheLight wrote: »

Fancy adding to the discussion by announcing where "round my way" actually is.
Then we may be able to discuss / debate / agree with you.

Otherwise you are sounding very much like you come from West Bromwich

Oldham;)..

Road_Hog

John_Pierpoint wrote: »

Are we heading to a world of defaults and competitive devaluation of money?
In the 1930's Britain was one of the first to devalue its currency. Come to think of it Gordon Brown pulled the same trick in 2008.
But USA seems to the the expert at the moment.

The USD has something that other currencies don't have. It is the world's reserve currency and most importantly the currency you need to buy oil.

So all countries that need to buy oil, need USD, which is what keeps it propped up. Of course, if a number of oil producing countries decided on using a different currency, then the US economy would go into meltdown as the dollar plunged and people shunned it.

Of course America wouldn't let that happen, so every time a country starts the process, the war on terror descends upon them or suddenly their leader becomes a despot and the people need liberating and a new government, that is happy to sell oil for USD.

IveSeenTheLight

Jimmy_31 wrote: »

Oldham;)..

IIRC you said that properties wer available for under £60k and this data can be backed up for terraced houses where the average is currently £57k, representing a 26% drop from peak.

You've referred before that you think these properties will be available to be bought for cash.
What nominal level do you envisage they will drop to?

Of course the biggest variance in Oldham has been on detached properties, where the price has dropped a similar 26% from circa £271k to £201k

OptionARMAGEDDON

I am starting to think the next interest rate move is going to be down, not up, around Q2 2012.

Flight2quality

Road_Hog wrote: »

The USD has something that other currencies don't have. It is the world's reserve currency and most importantly the currency you need to buy oil.

So all countries that need to buy oil, need USD, which is what keeps it propped up. Of course, if a number of oil producing countries decided on using a different currency, then the US economy would go into meltdown as the dollar plunged and people shunned it.

Of course America wouldn't let that happen, so every time a country starts the process, the war on terror descends upon them or suddenly their leader becomes a despot and the people need liberating and a new government, that is happy to sell oil for USD.

Exactly right, Gadafi wanted to stop using USD and go back to honest money gold for trading oil around the world.

If Nato did not manage to kill him then the USD would have died sooner, and gold and silver would be back up to their true value.

But killing Gadafi has bought the USD some more time and keeping the price of gold and silver artificially down a little while longer.

Giving smart investors more time to put their monthly income into real money and out of fiat currency.

Road_Hog

TheEnigma wrote: »

If you are right thenit will only postpone the bottom for house prices.

I'll take the £3K a year interest payments I'm saving, plus anything extra another cut would offer. Once my mortgage is gone, interest payments aren't such an issue.

Conrad

Flight2quality wrote: »

Yes I think we are heading to a world of defaults and competitive devaluation of money? But this time it is the entire world involved.

Nope we're heading to the greatest period of wealth creation yet seen. 3 years from now we'll be well underway.