Hi All
I'm keen to hear what some of the investors here that have seen the cycles come and go think about the long term rate of inflation.
With the US Fed looking down the barrel of QE3, we are seeing the world being flushed with massive amounts of cash. This cash has to go somewhere right? And once the cash is in the system, it's difficult to remove.
So what are peoples thoughts on exposure to long term assets that tend to rise with inflation (housing, resources etc) and will this increased rate of global inflation curb the current rate of household saving / de-leveraging that we are currently seeing.
Or will we see all out central bank war on the inflation genie - ie global sky high interest rates stalling growth? I fear that the right move when it hit the fan in 2007 would have been to let nature take it's course and have banks and potentially certain governments fail. Instead now we seem to be past the point of no return as the problems will have been compounded should we let it all fail at once.
Keen to hear other people's thoughts??
I'm keen to hear what some of the investors here that have seen the cycles come and go think about the long term rate of inflation.
With the US Fed looking down the barrel of QE3, we are seeing the world being flushed with massive amounts of cash. This cash has to go somewhere right? And once the cash is in the system, it's difficult to remove.
So what are peoples thoughts on exposure to long term assets that tend to rise with inflation (housing, resources etc) and will this increased rate of global inflation curb the current rate of household saving / de-leveraging that we are currently seeing.
Or will we see all out central bank war on the inflation genie - ie global sky high interest rates stalling growth? I fear that the right move when it hit the fan in 2007 would have been to let nature take it's course and have banks and potentially certain governments fail. Instead now we seem to be past the point of no return as the problems will have been compounded should we let it all fail at once.
Keen to hear other people's thoughts??
) And I doubt they would let the economy sliup down the drain. They're able to pull a few strings when need be you know. The Banks want you to buy property. You to sell it at a higher price to someone else. Someone else to borrow the higher amount from them, and then you to also take on more debt with them. This erodes profits when the housing market goes down the tubes. Lucky it's never happened here before and the Banks are wise to this and I doubt we will see anything like the US has in Australia.
