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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Skeeter Bug who wrote (263975)	7/26/2010 12:59:25 PM
From: grusum	Read Replies (1) \| Respond to of 306849

actually i think schiff goes into why people won't want the dollar quite often. the gist of it is that the dollar is being devalued as a matter of policy. as more and more people begin to see that, more and more of them will want out of the dollar and it will become the world's hottest potato. but schiff also made other distinctions. he was talking about nominal dollars deflating in value or inflating in cost. he said he would agree with you if you referenced value to gold instead of dollars. in other words, he thinks gold will go up faster than general prices. and to be a little more accurate he said roughly "IF the supply of goods falls faster than the money supply, then price inflation will result." but i agree with you that demand could still fall faster than supply and thereby lower prices. so one doesn't necessarily bring about the other. on your point number 3 regarding lending, the reason he doesn't state why it's not happening is because to him it's not important, as it is to you. the important thing to him is that it is indeed happening and how to protect yourself. his clients welfare is what's important to him, not punishing who's ever responsible, like you want to do. if he gets elected he will work to implement free market solutions which by necessity ends most of the corruption and tampering that's now taking place. he didn't say that $5k, $10k will go to every tax payer. he said that carried on for long enough he wouldn't be surprised to see something like this happen. he was just trying to point out the absurdity of what we are doing. and he didn't actually mention the cpi. he just asked the woman if she noticed that prices other than housing were going down. she said 'of course not'. prices in general don't seem to be falling yet, even though there are short term fluctuations in just about everything. i appreciate that you took the time to listen to the podcast at all. most people wouldn't have done it. but you seem to have been in a little bit of a hurry and misread some of what he was saying. and like you i felt deflation was coming first. i still don't know. you might be right. but what schiff said made sense to me. however, i still consider it a strong possibility that we might not have any meaningful price deflation overall.