How many years ago...

[Auagau]

and if you held it in cash you would be 7% per annum compounding worse off over that time. This is what they want the weak hands to leave.

7% worse off compared to what exactly?

Not in terms of gold, silver, property, oil, postage stamps, 1L of milk...

i'm comparing PM's to cash in the bank, inflation kills most investments

And I am asking for real life examples of inflation in recent times.

I can think of electricity prices. Can you think of any???

Cash in the bank is definitely trumping metals for the last couple of years!

 

[hiho]

7% worse off compared to what exactly?

Not in terms of gold, silver, property, oil, postage stamps, 1L of milk...

i'm comparing PM's to cash in the bank, inflation kills most investments

And I am asking for real life examples of inflation in recent times.

I can think of electricity prices. Can you think of any???

Cash in the bank is definitely trumping metals for the last couple of years!

With all due respect you dont understand inflation, it is an increase in the money supply and since the lablor pardy has been in it's increased by min 7% per year. Additionally the goverment has also artificially driven interest rates down, this double edged sword has made savers broke, try being a retiree in this scenario

 

[Auagau]

i'm comparing PM's to cash in the bank, inflation kills most investments

And I am asking for real life examples of inflation in recent times.

I can think of electricity prices. Can you think of any???

Cash in the bank is definitely trumping metals for the last couple of years!

With all due respect you dont understand inflation, it is an increase in the money supply and since the lablor pardy has been in it's increased by min 7% per year. Additionally the goverment has also artificially driven interest rates down, this double edged sword has made savers broke, try being a retiree in this scenario

No.

Inflation is a general rise in the price of goods and services.

Rise in the money supply is a possible cause of inflation. It, however, is not 'inflation'.

 

[Melty]

I dont get it? Is this a good thing or a bad thing for you?

Its all good my man.

As for the cc debt, I should have clarified that i bought a bunch of stuff last year... (non pms)
like a john deere, new wood flooring ect...

My point is i like to be holding the pms when it counts
its gonna get a lot worse before it gets better
but if it all goes down

i have something

and if i have some credit card debt when it blows up then i win there too!
i have what i wanted and the debt goes away.
but i am prepared to pay it if i have to.

leveraged with my money
leveraged with their money

 

[hiho]

And I am asking for real life examples of inflation in recent times.

I can think of electricity prices. Can you think of any???

Cash in the bank is definitely trumping metals for the last couple of years!

With all due respect you dont understand inflation, it is an increase in the money supply and since the lablor pardy has been in it's increased by min 7% per year. Additionally the goverment has also artificially driven interest rates down, this double edged sword has made savers broke, try being a retiree in this scenario

No.

Inflation is a general rise in the price of goods and services.

Rise in the money supply is a possible cause of inflation. It, however, is not 'inflation'.

please go and read http://mises.org/daily/6294/

When, in the 16th century, American resources of gold and silver were discovered and exploited, enormous quantities of the precious metals were transported to Europe. The result of this increase in the quantity of money was a general tendency toward an upward movement of prices in Europe. In the same way, today, when a government increases the quantity of paper money, the result is that the purchasing power of the monetary unit begins to drop, and so prices rise. This is called inflation.

no need for apologies ;-)

 

[Auagau]

no need for apologies ;-)

Quoted from the article:

The result of this increase in the quantity of money was a general tendency toward an upward movement of prices in Europe. In the same way, today, when a government increases the quantity of paper money, the result is that the purchasing power of the monetary unit begins to drop, and so prices rise. This is called inflation.

So... as i asked... what are these examples of price rises?

 

[hiho]

no need for apologies ;-)

Quoted from the article:

The result of this increase in the quantity of money was a general tendency toward an upward movement of prices in Europe. In the same way, today, when a government increases the quantity of paper money, the result is that the purchasing power of the monetary unit begins to drop, and so prices rise. This is called inflation.

So... as i asked... what are these examples of price rises?

1. Rent
2. Insurance
3. Registration
4. Petrol
5. Public Transport

the high A$ masks most of the rises, if the $A falls you will see it my friend and it will be ugly, we are on the precipice of social unrest and high unemployment.

 

[Melty]

So... as i asked... what are these examples of price rises?

1. Rent
2. Insurance
3. Registration
4. Petrol
5. Public Transport

.

not to mention the increase in taxes paid on all of those things due to higher taxes on those things

 

[Auagau]

no need for apologies ;-)

Quoted from the article:

The result of this increase in the quantity of money was a general tendency toward an upward movement of prices in Europe. In the same way, today, when a government increases the quantity of paper money, the result is that the purchasing power of the monetary unit begins to drop, and so prices rise. This is called inflation.

So... as i asked... what are these examples of price rises?

1. Rent
2. Insurance
3. Registration
4. Petrol
5. Public Transport

the high A$ masks most of the rises, if the $A falls you will see it my friend and it will be ugly, we are on the precipice of social unrest and high unemployment.

You do understand the inverse relationship between unemplyment and inflation. Don't you??

 

[hiho]

Quoted from the article:





So... as i asked... what are these examples of price rises?

1. Rent
2. Insurance
3. Registration
4. Petrol
5. Public Transport

the high A$ masks most of the rises, if the $A falls you will see it my friend and it will be ugly, we are on the precipice of social unrest and high unemployment.

You do understand the inverse relationship between unemplyment and inflation. Don't you??

yes but do you undestand the lead lag relationship between the two?

 

[Auagau]

not to mention the increase in taxes paid on all of those things due to higher taxes on those things

Such as income tax which has fallen over the last few years?

 

[Auagau]

yes but do you undestand the lead lag relationship between the two?

From your list which are you actually claiming has risen 7% pa over the past few years?

 

[Ghost Story]

Before 2005 ( edit 2006 ) or end 2008 - bearing in mind that from 2000-2005 au dollar varied from low in 2002 of 52 us cents to around 78.
http://forums.silverstackers.com/uploads/9402_ag95-present.gif

does anyone see a pattern in this chart ?

like GFC stock market crash everyone heads for metal, stocks now doing well everyone is jumping ship to stocks dumping metals and buying shares in whatever's not PM's, makes sense to me. most people don't care what it is they want $ fast and have no emotions tied to metal or SHTF or what ever.

so why the price fall ? pretty simple for me no $ getting put in to the sinking ship PM ship has a big hole in it.

so what now ? $ talk and bullsh%t walks. who is going to buy stocks in something that's falling so fast ?

me still thinks wait a bit and see what happens save some $ and jump on fast.

its all a bit of fun really isn't it

 

[hiho]

yes but do you undestand the lead lag relationship between the two?

From your list which are you actually claiming has risen 7% pa over the past few years?

I can only speak for myself but over the last 18 months alone
public transport up from $6 retrun trip to $8
rego up from $550 to $680
car insurance up from $440 to $485
house insurance up but due to the floods
rent up from $515 to $535

for someone on a decent wage with increases to match you dont notice, but my mim and dad notice, they are on struggle street literally, so I am helping out, this is also inflationary for me.

 

[Ghost Story]

yes but do you undestand the lead lag relationship between the two?

From your list which are you actually claiming has risen 7% pa over the past few years?

I can only speak for myself but over the last 18 months alone
public transport up from $6 retrun trip to $8
rego up from $550 to $680
car insurance up from $440 to $485
house insurance up but due to the floods
rent up from $515 to $535

for someone on a decent wage with increases to match you dont notice, but my mim and dad notice, they are on struggle street literally, so I am helping out, this is also inflationary for me.

that explains it very well, why buy something that's not going to help pay the bills TODAY

 

[grinners]

yes but do you undestand the lead lag relationship between the two?

From your list which are you actually claiming has risen 7% pa over the past few years?

I can only speak for myself but over the last 18 months alone
public transport up from $6 retrun trip to $8
rego up from $550 to $680
car insurance up from $440 to $485
house insurance up but due to the floods
rent up from $515 to $535

for someone on a decent wage with increases to match you dont notice, but my mim and dad notice, they are on struggle street literally, so I am helping out, this is also inflationary for me.

Are they on struggle street literally? Or are they on struggle street metaphorically?

 

[Auagau]

yes but do you undestand the lead lag relationship between the two?

From your list which are you actually claiming has risen 7% pa over the past few years?

I can only speak for myself but over the last 18 months alone
public transport up from $6 retrun trip to $8
rego up from $550 to $680
car insurance up from $440 to $485
house insurance up but due to the floods
rent up from $515 to $535

for someone on a decent wage with increases to match you dont notice, but my mim and dad notice, they are on struggle street literally, so I am helping out, this is also inflationary for me.

Ahh, well your world is a lot different to mine:

Transport (car) - petrol prices are lower than 12 months ago. I need my car at work.
Rego - unchanged
Insurance - health insurance went up a couple of % but that's it. House insurance unchanged.
Mortgage repayments - down from 12 months ago