Is anyone else getting scared of inflation or hypherinflation?

[Mike 03]

I am preparing, but I don't know if I am rational or irrational anymore.

[damntexdem]

1. Yes, but I'm trying to diet.

Oh, FINANCIAL inflation.

Actually, I'm more worried about deflation and a renewed depression -- err, recession.

[Mike 03]

2. I am trying to be on a ketegonic diet.

Just expecting the worse.

[Riftaxe]

3. Eventually yes, but I am sure they will pass QE 2.5

(election year edition) first.

[doc03]

4. It's inevitable the debt we have can't be sustained, politicians

won't face facts and cut spending and raise taxes so inflation is the only alternative. I am retired and inflation is my biggest worry, I remember the 70's when we were running double digit inflation.

[customerserviceguy]

5. Count me in as one who feels that way

This is the late 1970's all over again, in many ways. The Fed cannot possibly print that much money without it causing inflation.

One of the few good things that came out of the Reagan years tax laws was indexing the tax brackets, standard deductions, and personal exemptions to inflation. Before that, government had a stake in contributing to inflation, it meant more tax revenue. It also meant Congress could buy votes with one-shot tax cuts that were really just a partial giveback of bracket creep.

Now, with the baby boom generation knocking on the door of their retirement years, inflation is being used to rescue the government again. Inflation always favors the borrower over the lender, and with $14 trillion dollars of debt, the Federal government has another incentive to let prices rise.

[Lyric]

6. Worried, maybe, but not as scared as some.

Inflation and hyperinflation are a lot more painful for people who actually have savings that will become worthless AND who then get hit by price increases. We don't have anything, so we only get hit by the price increases.

[MilesColtrane]

7. Stagflation's coming.

[Yavin4]

8. Nothing to Worry About

Inflation can be curbed by raising interest rates which will probably start happening later this year or next year.

[Poboy]

9. We are told by our betters that this is a silly concern.

[taught_me_patience]

10. Too many deflationary pressures for hyper-inflation n/t

[Nay]

22. Agreed, TMP. Wages would have to be rising for hyperinflation to truly occur.

Only if you have lots of money chasing too few goods do you have hyperinflation, usually. You have to get the $$ to the spenders somehow, and nobody in this country is willing to give workers a dime.

[Yo_Mama]

11. Yes, We are into the printing money cycle

I'm old enough to remember the 70s, and here we go again.

[Taitertots]

12. Inflationary fears are unjustified

The Fed just isn't printing enough to cause high inflation. They are orders of magnitude away from causing hyperinflation.

[The Backlash Cometh]

13. I'm not worried because the socialists are going to save us!

I'm only half kidding.

[eridani]

14. No. Rich pigs buying bonds aren't worried, and given that they are all over--

--feathering their nests, I'm not worried.

[girl gone mad]

15. No. Hyperinflation is not in the cards.

I completely understand the psychology that's fueling these fears, but from a rational and logical assessment of our economy, hyperinflation is a virtual impossibility and inflation is a relatively minor concern.

Take a look at the big picture. Do we have too many dollars in the economy chasing too few goods or do we have too few dollars and too many goods? I would argue strongly that it's the latter. We are still faced with double digit unemployment, widespread under-utilization of productive capacity, declines in home prices, commercial real estate declines, stagnant wages, massive global over-development, crushing college loan debts, 0% interest rates on savings accounts, etc.

My guess is that you are mistaking the speculative bubbles occurring in energy and commodities with real inflation. I don't remember so many people worrying about inflation when housing prices were rising dramatically, but that particular bubble actually did create more inflationary pressure in my view, because it caused increased demand for the goods associated with construction, remodeling and new home sales (furnishings, etc) and it pumped money into the actual economy via home equity loans and the wealth effect of rising valuations. Yet, the housing bubble never led to hyperinflation, and the commodities bubble is even less likely to do so.

[SoCalDem]

16. Having lived through this sort of thing many times before, I'm not that concerned

I'm at a stage in life where I would actually like to see higher interest on my savings..I know that will piss some people off, but as a saver, I have been ripped off for ages, with rising prices, so if interest goes up, at least I'll get a bit more interest out of the deal.

[pitohui]

17. preparing how?

there aren't any preparations you can make, other than spending all your cash before it loses all value

i think we've already all spent down all of our cash and gone broke involuntarily but if you need help spending down any remaining moneys i have lots of ideas for how to assist you :evilgrin:

[madinmaryland]

18. No. Paul Krugman who has been predicting pretty accurately says there

is no real chance of it happening.

[Fool Count]

19. Don't be afraid, embrace it!

As long as you don't have too many US dollars saved, it's all good. Imagine all those underwater mortgages paid off with one monthly paycheck
in few years time. Inflation is only bad for the creditors, for the debtors it's like manna from heaven. That appears to be the only way to make
the rich part with some of their wealth. It had to be done, so if they wouldn't listen to other suggestions, what else do we have left?

[southernyankeebelle]

20. Somehow I have stopped worrying about things I have no control over. I just don't know were to turn

so every night I thank god for another day of good of living and another day my family makes it through the day without any serious problems. That's all we can pray for.

[xchrom]

21. India & china are concerned about inflationary pressures.

Mailed sense we should be - especially given stresses on wages.