inflation, significant inflation, hyperinflation.
hyperinflation is a vague undefined term. it just means a super inflation, and lots of it.
even if "hyperinflation" does not occur, the inflation that is coming will be significant and painful to most.
it will wipe out the savings plans of american savers. obama is encouraging savings. the interest rate given by banks to their savings will not keep pace w inflation. it is one of the tools by which wealth will be siphoned slowly away from the public. the public won't even know what hit them. and again, they will be taxed on their "profit losses". (apparent profit numerically, but loss after adjusted for inflation).
the buying power of the interest and principle of a savings plan will have less value after inflation, than before. and then one adds insult to injury by getting taxed on the "apparent profit"!!!!
i made a post recently on this, but was surprised that no one picked up on this critical piece of analysis, and what appears to me as simple math. i thought that at least some of the SI population had more analytic reasoning ability, but it seems many are simply chart gurus instead.
the same logic applies to investments in the stock market. a dollar may become two if a stock doubles, but we must be keenly aware of inflation adjusted dollars and the subsequent capital gains taxes
i would predict that in the future, more and more data will have to analyzed w the term, "inflation adjusted". the charts will look much different and have more meaningful interpretation with inflation adjusted data.
if everyone disagrees w this line of thinking, so be it. this is the way i see it. |
