i called it first! GFC Mk2.
- Thread starter Aaron Sice
- Start date
No idea.
I wonder if looking back at history can give a clue?
We all know about the high inflation and interest rates of the 70's and 80's. But it was more like high inflation 70's and high interest rate 80's.
It looks like when inflation took off in 1973 caused I think by the oil crisis, interest rates also took off, but not by a big amount. Then, for a good few years the inflation rate was much higher than the interest rate. I'd reckon geared up investors probably did really well from this.
This must have created some interesting investment situations?
It looks like house prices rose sharply just before the Oil crisis, then dropped?
My father had borrowed big in 1975 to buy the family farm off his mother and 3 brothers. I remember him coming home from the bank all white and shaking and saying to us all that he must be completely nuts. It all turned out well though as some good seasons had the debt rained in quicksmart before the really high interest rates.
By the time interest rates had really got going in the 80's, inflation had dropped. By 1990, interest rates were nuts. We were paying 22% as farmers after buying another farm in 1985. Resi property had doubled from the 87 stockmarket bust to 1990, then were flat till 97 as interest rates dropped.
What are the clues here? Buggered if I know.
Any old timers remember things about the 70's and 80's? I only remember from about 85 onwards as I was at school before then and was only concerned with chasing girls.
See ya's.
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Your examples are hyper-inflation which is the worst thing that can happen to the citizens of a nation, even (especially?) the middle class.
Your mortgage will inflate away but the hardships you, your friends and family will suffer are too great a price to pay. Be careful what you wish for.
I thought that was what DanielG was referring to, and that was what I was replying to.
I agree if hyper-inflation hits things will be bad.
It would be the worst case of D&Ging to believe we are coming close to hyper-inflation.
I just wanted to put things in perspective. If social order collapses the last thing to worry about is what you owe the bank.
I'm a D&Ger by SS definitions but I think you are taking things too literally.
AUSTRALIA is not the US or Greece or Italy or anyone else.
A brand new thought so I could never have expressed it before: We only need to be "above average" (and that doesn't say much) to be immune from hyper inflation. Money exiting poor currencies must go somewhere. I am not not saying sweetness and roses are guaranteed but ballance tells me to keep my hard earned in A$ or C$.
No. Only a hyperinflation scenario would have your interest rates below inflation. OK I know it happened briefly in the '70s but there have been millions of opportunities over the years, let's not live in the past.
you have to survive meeting the banks payments for a long time before you get to the stage of hyperinflation. plus if there are no jobs what wage will keep up with inflation .
read some history people
here is a very basic place to start . this and other related topics been discussed at the gold forum i use for a few years now
http://en.wikipedia.org/wiki/Great_Depression_in_Australia
you will notice its still the same names causing the problems now
also something to look at http://www.youtube.com/watch?v=_dmPchuXIXQ
Haven't seen this chart before.....It is a goody.....ta
plenty of oil floating around the gulf of mexico at the moment. who wants to come with me on my tinny? bring a couple of jerri cans with ya.
When I think of Rudd's "the minerals belong to all of us" statements I visualise thousands of people with a pick, shovel and wheelbarrow digging up the Pilbra. Once you've got your barrow load, what do you with it? Panning for gold is different but I don't know of any listed company working alluvial gold. Father/son ops can dredge for tin but that's environmental vandalism.
sierra leone alluvial diamond mine pictures come to mind.
- above image thanks to Encylopaedia Britannica.
those people are doing it to survive .
look at some vid's on zimbabwe . trying to scrape enough gold dust to get bread ..
