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Post Info TOPIC: Tariff dominoes - look out here comes the hyperinflation!
Are you seeing the signs of hyperinflation? [2 vote(s)]

Yes! Every single day!
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No, things have been about the same
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SELLC


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Tariff dominoes - look out here comes the hyperinflation!
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So we have all known that the tariffs were coming... but now they are here and it looks like Mexico is going to be on the list soon as well... 

One would think that a 25% tariff would be just a 25% increase and not too bad, but the free market dictates that everything must be doubled in order to make a profit.. What this means is that if a manufacturer of a particular item is paying 25% more for an item (importing from China or soon Mexico), they will then charge 50% more to make up for the 25% to offset for things like payment processing fee's and other such market and business forces that require them to do so... But wait, there is more! Usually the supply side works in a way where local businesses will be two or three rungs down from the manufacturer, who usually requires contractual agreements with their vendors to set pricing and ensure an agreed amount of volume/sales - the "free market" calls this "inside-sales".

So now we have talked about a bulk sale, by a manufacturer to a wholesaler/distributor. The bill from the manufacturer to the distributor will now be 25% higher + their 25% markup making the actual cost to the distributor 50% higher. Now the distributor will sell this part to various wholesalers, taking that 50% cost increase and also doubling it - thus making it into an actual 100% increase. What this means is the wholesaler will then double that and sell to the retailer at 100% markup, in essence. The retailer will then have to accept that 100% mark-up being the third person in the chain and double that to 200% when the final sale to the end user occurs. This is not a joke, and this is exactly what is currently happening as we speak! This is the way that the free market works, and anyone telling you that 15-30% markup is enough to live on is lying because they know full well they cant run a business, pay the employees and keep the lights on for 15-30% markup. Neither the manufacture, wholesaler or the retailer could stay in business @ 15-30% markup. 

So take for instance, an automotive brake rotor that was once $23 wholesale will now be close to $70 retail and I see it every day with local parts suppliers, especially the big box ones like Autozone and O'Reilley which are pretty much retail parts vendors but also have wholesale divisions to service repair shops. The problem comes because while AutoZone and O'Reilley are getting their full 100% increase, they are trying to suggest that the retailers (auto shops) should only mark up 15-30% of their over-inflated "wholesale" price. It's just not possible, and thus my claims to "look out, here comes the hyperinflation!".

This does not just extend to auto parts, this will pretty much extend to all items to where by the time an item is sold at retail, the item will have increased AT LEAST 100-200% with another increase once the retailer sells to the end user! That is how capitalism and the free market works and it goes to show how dangerous all these years of China subsidizing their cheap parts is... People have become accustom to inexpensive Chinese goods to drive down the price of others - but in the end most people are simply interested in the lowest price. This is how China has been effective at eliminating it's domestic completion in the USA. One might think it would then make it cheaper to source "domestic-American" goods but the problem is there just aren't many left and the ones that are left probably aren't getting the financing they need and thus could never scale output to make up for it, and if they did they would know it could be just a matter of time before they are left holding the bag when a deal between China and the USA is reached and the cheap subsidized imports are once again flowing across the border. 

Here is the kicker, even if an American manufacturer was able to meet output and fill the void they would almost certainly fix their prices at or near what the more expensive imported parts are selling for, so there is absolutely no way to avoid this hyper-inflation. It is getting to the point every liberal is taking extreme pride in blaming the 25% tariffs on their 100-200% price increases. More and more we have to order in parts to keep cost in line which requires a lot more time involved. Downtime is bad for the customer and the business because it creates delays and time spent waiting and re-schedualing but it's the only way to keep cost inline with pre-hyperinflation prices. 

This is what people must prepare for because the term "hyperinflation" is the father of just plain old "inflation". When "hyperinflation" sets in it's quick and costly - at very minimum AT LEAST twice as bad as regular inflation but usually it sets in ten times worse by the time it reaches the end user or retailer. What this will do is shake up every industry and market out there as everyone works to adjust. It will put out of business a lot of suppliers and retailers as they simply will not be able to hang on while Amazon and the Online retailers operate with relatively low 25-50% increases themselves, plus it is way more expensive for a brick and mortar to operate than a warehouse. 

This is what is upon us right now, and the thing with "hyperinflation" is that once it starts there is no stopping it because the markets are all in flux creating the opportunity to make more money on less product. When everyone is just doubling their increases and passing it down to the next guy who will do the same - it's plain to see that it's a runaway train that is not going to be stopped. 



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Nuffan


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Tariffs have ZERO impact on INFLATION....

 

Tariffs can cause the cost of an item to increase and that increase is a form of tax passed along to the consumer but it goes to the government not the corporation...

 

if the corporation wishes to avoid the tax they will produce in America or in a country that does not have trade imbalances with the USA...

 

Inflation comes from creating money out of thin air....IE QUANTITATIVE EASING...when we allow the Federal Reserve to simply PRINT additional currency....

 

The more currency there is the less the implied value...

 

It is why a pickup truck that cost under $2K in 1972 is over $40K today...

 

 

THAT CREATES INFLATION and it is the ONLY way to create INFLATION...



-- Edited by Nuffan on Wednesday 5th of June 2019 05:51:18 PM

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SELLC


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Do you even work anymore Nuffan? Or are you just managing property for a living?

Do you even know what the word "inflation" means?

You are a fool, and this latest response shows you have absolutely no business sense whatsoever. 

Inflation comes when the price of ANYTHING increases for ANY REASON. 

But we're not talking about inflation, we are talking about Hyperinflation.

Think you best do some more research... Obama is out of office now and there is no quantitive easing going on. 



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SELLC


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In economics, hyperinflation is very high and typically accelerating inflation. It quickly erodes the real value of the local currency, as the prices of all goods increase. This causes people to minimize their holdings in that currency as they usually switch to more stable foreign currencies, often the US Dollar.[1] Prices typically remain stable in terms of other relatively stable currencies.

Unlike low inflation, where the process of rising prices is protracted and not generally noticeable except by studying past market prices, hyperinflation sees a rapid and continuing increase in nominal prices, the nominal cost of goods, and in the supply of money.[2] Typically, however, the general price level rises even more rapidly than the money supply as people try ridding themselves of the devaluing currency as quickly as possible. As this happens, the real stock of money (i.e., the amount of circulating money divided by the price level) decreases considerably.[3]

Hyperinflation is often associated with some stress to the government budget, such as wars or their aftermath, sociopolitical upheavals, a collapse in aggregate supply or one in export prices, or other crises that make it difficult for the government to collect tax revenue. A sharp decrease in real tax revenue coupled with a strong need to maintain government spending, together with an inability or unwillingness to borrow, can lead a country into hyperinflation.[3]

 

https://en.wikipedia.org/wiki/Hyperinflation



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SELLC


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In fact, Republicans had better embrace hyperinflation because the only alternative is to stand there with your pants down looking like a fool, sort of how Nuffan looked a few post earlier.

He's over there pondering inflation when the keyword is "hyperinflation"! DUH!

Get the narrative right boy! evileye



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SELLC


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Even Wal Mart and many other liberal retailers like Maceys are warning that their prices are going up,

https://www.foxbusiness.com/markets/walmart-china-tariffs-price-increases-us-stores

Then again, Walmart enjoyed mega-earnings under Obama due to their bridge / welfare cards... it was good times for them.

And Maceys? Well how can anyone forget about the brawl that Trump got into with them back when running for President.

Bottom line here is this, we can either be prepared or we can let it creep up on us... 

Trump said awhile back there would be "a little bit of pain", but I would say that such talk won't be so quick from his lips anymore now that we are heading into a presidential election.

Liberals love price increases, especially in oil because it gives them something to bitch about and traction for all their other ridiculousness... I am here to warn everyone that Hyperinflation will be weaponized the same way but with further reaching implications. Wherease you used to be able to curb your driving, with hyperinflation you'll be hard pressed to escape it.



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I feel an incumbent upon me to mention this 200% markup is only of the 25% tariff.

So in easy numbers, something that was $10 would result in a $2.50 increase.. You would take this $2.50 increase and times it by three and your $10 product will now cost $17.50 and while that's substantial I'd imagine that a lot of people are taking hits along the way to keep it from getting out of hand. The point is were now at the stage where it's going to be noticed and that is what hyperinflation is - the sudden rise in the nominal cost of goods. 

Some people, like Nuffan or PowerStroker may not have been able to pick up on that. We are all aware of regular "inflation", but what we are seeing is "hyperinflation".

Small business people like myself have a real good bead on things like this, since we don't get to run budgets in the red and the bank isn't writing us a check regardless of our debt. In fact I would say that banks are pulling back and that current banking and mortgage companies are completely prejudiced against small business-people! It's almost a form of discrimination because they abuse small business owners so badly in any financial underwriting. Banks and the Government have never been interested in small business or helping them expand, they want the big companies who are paper bulls and run the same kind of shell games as they do. Small business people are less likely to be influenced by unions or politics, they are less likely to cause any serious damage like the numerous massive corporations and governments who have defaulted to disastrous consequence to everyone. They punish small business owners by limiting their financial options and not allowing them access to insurance pools like big business and government. In fact, it's about time someone did something about it before the idea of anyone ever starting a new company is all but shut out. They also tax the hell out of the self employed - regardless if you made any money on paper or not. Why? Because they love the interest they can extort out of the small business person, they love the cash that comes in from small business, they love the fact they can charge more for insurance premiums while offering less. It's all done to keep the status quo, the status quo that Obama swore to break, but in turn only helped out big government, Wall Street and big business. 

So in a way, unless anyone here has 24 years experience running their own business - I guess you could call me the closest thing to an expert on this issue as any talking heads you guys might be watching or reading about! Because unlike Wall Street, the Banks and Big Business the small guy has to deliver and doesn't enjoy the luxury of running a deficit and having access. We get by with results and we can weather a hell of a lot more than the 2008 meltdown!

 



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Nuffan


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SELLC wrote:

Do you even work anymore Nuffan? Or are you just managing property for a living?

Do you even know what the word "inflation" means?

You are a fool, and this latest response shows you have absolutely no business sense whatsoever. 

Inflation comes when the price of ANYTHING increases for ANY REASON. 

But we're not talking about inflation, we are talking about Hyperinflation.

Think you best do some more research... Obama is out of office now and there is no quantitive easing going on. 

 

 

Words are important....

 

Inflation means devalued currency due to increased volume of currency...

 

PERIOD...

 

Price go up and down based on supply and demand...

 

inflation comes specifically from the money supply side of the equation...

 

The inflation and hyper inflation we are about to REALIZE is due to the Quantitative Easing under Obama (and Bush before him) as inflation is not immediately realized...

 

the price of goods increasing has two factors....1) supply and demand...2) inflation...tariffs may impact the supply and demand side of the equation...but inflation comes from artificial injection of currency into the economy...

 

 

inflation is caused DIRECTLY from increasing the volume of currency....

 

hyper-inflation is simply inflation that is compounded by a governmental need to adjust to a reduction in the value of tax dollars collected...  






-- Edited by Nuffan on Thursday 6th of June 2019 10:58:58 AM

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SELLC wrote:

I feel an incumbent upon me to mention this 200% markup is only of the 25% tariff.

So in easy numbers, something that was $10 would result in a $2.50 increase.. You would take this $2.50 increase and times it by three and your $10 product will now cost $17.50 and while that's substantial I'd imagine that a lot of people are taking hits along the way to keep it from getting out of hand. The point is were now at the stage where it's going to be noticed and that is what hyperinflation is - the sudden rise in the nominal cost of goods. 

Some people, like Nuffan or PowerStroker may not have been able to pick up on that. We are all aware of regular "inflation", but what we are seeing is "hyperinflation".

Small business people like myself have a real good bead on things like this, since we don't get to run budgets in the red and the bank isn't writing us a check regardless of our debt. In fact I would say that banks are pulling back and that current banking and mortgage companies are completely prejudiced against small business-people! It's almost a form of discrimination because they abuse small business owners so badly in any financial underwriting. Banks and the Government have never been interested in small business or helping them expand, they want the big companies who are paper bulls and run the same kind of shell games as they do. Small business people are less likely to be influenced by unions or politics, they are less likely to cause any serious damage like the numerous massive corporations and governments who have defaulted to disastrous consequence to everyone. They punish small business owners by limiting their financial options and not allowing them access to insurance pools like big business and government. In fact, it's about time someone did something about it before the idea of anyone ever starting a new company is all but shut out. They also tax the hell out of the self employed - regardless if you made any money on paper or not. Why? Because they love the interest they can extort out of the small business person, they love the cash that comes in from small business, they love the fact they can charge more for insurance premiums while offering less. It's all done to keep the status quo, the status quo that Obama swore to break, but in turn only helped out big government, Wall Street and big business. 

So in a way, unless anyone here has 24 years experience running their own business - I guess you could call me the closest thing to an expert on this issue as any talking heads you guys might be watching or reading about! Because unlike Wall Street, the Banks and Big Business the small guy has to deliver and doesn't enjoy the luxury of running a deficit and having access. We get by with results and we can weather a hell of a lot more than the 2008 meltdown!

 

 

 

Everyone in general is paying the interest...it is simply more affordable to General Electric than a small business..current interest is still incredibly low...

 

Mega Corporation have for over half a century finance their day to day BECAUSE of what we have allowed o become of interest rates...

 

We have created the incentive to BORROW and removed the incentive to save...

 

I have well over 6 figures in a high yield account...

 

interest last month was just sad...

 

Yes I still work...although I am ready to retire...

 

My age and years of service exceed 80 in February, which means additional years have diminishing returns for me now...

 

I like the income so I keep working...

 

I have a FULL pension...I have a nice 401K I have a solid cash reserve and I have a small block of Amazon Stock...and I am essentially DEBT FREE...

 

I am down to two properties now my home and a single rental property in gulf shores...

 



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Donald J. Trump.............

I am pleased to inform you that The United States of America has reached a signed agreement with Mexico. 

The Tariffs scheduled to be implemented by the U.S. on Monday, against Mexico, are hereby indefinitely suspended. 

Mexico, in turn, has agreed to take strong measures to stem the tide of Migration through Mexico, and to our 

Southern Border. This is being done to greatly reduce, or eliminate, Illegal Immigration coming from Mexico 

and into the United States. Details of the agreement will be released shortly by the State Department. 

Thank you!



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Image may contain: 1 person



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SELLC


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Nuffan wrote:
SELLC wrote:

Do you even work anymore Nuffan? Or are you just managing property for a living?

Do you even know what the word "inflation" means?

You are a fool, and this latest response shows you have absolutely no business sense whatsoever. 

Inflation comes when the price of ANYTHING increases for ANY REASON. 

But we're not talking about inflation, we are talking about Hyperinflation.

Think you best do some more research... Obama is out of office now and there is no quantitive easing going on. 

 

 

Words are important....

 

Inflation means devalued currency due to increased volume of currency...

 

PERIOD...

 

Price go up and down based on supply and demand...

 

inflation comes specifically from the money supply side of the equation...

 

The inflation and hyper inflation we are about to REALIZE is due to the Quantitative Easing under Obama (and Bush before him) as inflation is not immediately realized...

 

the price of goods increasing has two factors....1) supply and demand...2) inflation...tariffs may impact the supply and demand side of the equation...but inflation comes from artificial injection of currency into the economy...

 

 

inflation is caused DIRECTLY from increasing the volume of currency....

 

hyper-inflation is simply inflation that is compounded by a governmental need to adjust to a reduction in the value of tax dollars collected...  

 


 

I agree, words are VERY important! 

Title of the thread CLEARLY states - "Hyperinflation"... then we have you going off about regular old "inflation"..

Had you even taken the time to read the entire thread you would see I even went so far as to spell out that I was not talking about regular "inflation".



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Nuffan


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SELLC wrote:
Nuffan wrote:
SELLC wrote:

Do you even work anymore Nuffan? Or are you just managing property for a living?

Do you even know what the word "inflation" means?

You are a fool, and this latest response shows you have absolutely no business sense whatsoever. 

Inflation comes when the price of ANYTHING increases for ANY REASON. 

But we're not talking about inflation, we are talking about Hyperinflation.

Think you best do some more research... Obama is out of office now and there is no quantitive easing going on. 

 

 

Words are important....

 

Inflation means devalued currency due to increased volume of currency...

 

PERIOD...

 

Price go up and down based on supply and demand...

 

inflation comes specifically from the money supply side of the equation...

 

The inflation and hyper inflation we are about to REALIZE is due to the Quantitative Easing under Obama (and Bush before him) as inflation is not immediately realized...

 

the price of goods increasing has two factors....1) supply and demand...2) inflation...tariffs may impact the supply and demand side of the equation...but inflation comes from artificial injection of currency into the economy...

 

 

inflation is caused DIRECTLY from increasing the volume of currency....

 

hyper-inflation is simply inflation that is compounded by a governmental need to adjust to a reduction in the value of tax dollars collected...  

 


 

I agree, words are VERY important! 

Title of the thread CLEARLY states - "Hyperinflation"... then we have you going off about regular old "inflation"..

Had you even taken the time to read the entire thread you would see I even went so far as to spell out that I was not talking about regular "inflation".

 

HYPER-INFLATION has ZERO to do with tariffs...

 

Now you are just being ridiculous to try and save face...

 

INFLATION = increase in the volume of currency, causing the reduction in it's value...

 

HYPER-INFLATION is INFLATION compounded by governments need to adjust due to the loss of value in tax dollars collected...

 

 

NONE IF IT HAS ANYTHING TO DO WITH TARIFFS...

 

 

 



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SELLC


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Nuffan wrote:
SELLC wrote:

I feel an incumbent upon me to mention this 200% markup is only of the 25% tariff.

So in easy numbers, something that was $10 would result in a $2.50 increase.. You would take this $2.50 increase and times it by three and your $10 product will now cost $17.50 and while that's substantial I'd imagine that a lot of people are taking hits along the way to keep it from getting out of hand. The point is were now at the stage where it's going to be noticed and that is what hyperinflation is - the sudden rise in the nominal cost of goods. 

Some people, like Nuffan or PowerStroker may not have been able to pick up on that. We are all aware of regular "inflation", but what we are seeing is "hyperinflation".

Small business people like myself have a real good bead on things like this, since we don't get to run budgets in the red and the bank isn't writing us a check regardless of our debt. In fact I would say that banks are pulling back and that current banking and mortgage companies are completely prejudiced against small business-people! It's almost a form of discrimination because they abuse small business owners so badly in any financial underwriting. Banks and the Government have never been interested in small business or helping them expand, they want the big companies who are paper bulls and run the same kind of shell games as they do. Small business people are less likely to be influenced by unions or politics, they are less likely to cause any serious damage like the numerous massive corporations and governments who have defaulted to disastrous consequence to everyone. They punish small business owners by limiting their financial options and not allowing them access to insurance pools like big business and government. In fact, it's about time someone did something about it before the idea of anyone ever starting a new company is all but shut out. They also tax the hell out of the self employed - regardless if you made any money on paper or not. Why? Because they love the interest they can extort out of the small business person, they love the cash that comes in from small business, they love the fact they can charge more for insurance premiums while offering less. It's all done to keep the status quo, the status quo that Obama swore to break, but in turn only helped out big government, Wall Street and big business. 

So in a way, unless anyone here has 24 years experience running their own business - I guess you could call me the closest thing to an expert on this issue as any talking heads you guys might be watching or reading about! Because unlike Wall Street, the Banks and Big Business the small guy has to deliver and doesn't enjoy the luxury of running a deficit and having access. We get by with results and we can weather a hell of a lot more than the 2008 meltdown!

 

 

 

Everyone in general is paying the interest...it is simply more affordable to General Electric than a small business..current interest is still incredibly low...

Yes, everyone is paying the increase but big business has what PowerStroker often refers to as "corporate welfare" which is totally unfair to the small business people. I really thought Trump was going to do more for small business but I should have known better. IIRC Obama and the Government gave GE some serious tax breaks under the Obama administration along with some of that good ole' "corporate welfare". Problem with giving a business a huge break and welfare is that the next year they will want to do the same, again and again until they throw a fit and go bankrupt for the final act. Amazon is heading down that path right now, actually talking about failure and billion dollar losses! Amazon has ALWAYS been a freak-show.

Mega Corporation have for over half a century finance their day to day BECAUSE of what we have allowed o become of interest rates...

This is very true, I'll give you that! I get mailers all the time that brag about 2.5% interest on savings of $10k or more and I have to wonder - who actually does that!? CD's and other high yield savings have penalties where you will actually lose money by pulling it out early! You'd have to be a real retard to go for that kind of thing! Take liquid money and put an anchor on it with conditions!? For 2-5% interest!? WTF!? 

 

We have created the incentive to BORROW and removed the incentive to save...

 Agreed, it is all set up that way to keep the status quo. 

I have well over 6 figures in a high yield account...

 Very good, you obviously can't touch it without a penalty so you must just be filthy rich anyway and have no other means of making more with it. What is your high yield? Bet it's not even CLOSE to 5%!? And what it the penalty? You brought it up, share with us so we can get out heads around it.

interest last month was just sad...

 How sad? Less than 5% sad?

Yes I still work...although I am ready to retire...

 I admire your work ethic! I too hope that I can work well past my 80's! I find this inspiring, but at 80 you have earned at least a part time status to enjoy what you can as you won't be able to take it with you! 

My age and years of service exceed 80 in February, which means additional years have diminishing returns for me now...

 Please explain, perhaps I am just too young to see down the curvature of the earth to understand what that means. Give me some 80 year wisdom!

I like the income so I keep working...

 Money is good, seeing the account go up rather than down is also a really good feeling! With two teen kids, both driving and in high school I'll probably have to work 5 more years past the last ones graduation in order to see things start going back up but I feel lucky to have it now for them so even if they do fuck up in life they will have at least known a relatively nice childhood for which to set a benchmark. That's just my layman thoughts on the matter at the ripe old age of 43.

I have a FULL pension...I have a nice 401K I have a solid cash reserve and I have a small block of Amazon Stock...and I am essentially DEBT FREE...

 I have no pension outside whatever real estate I may gather from now until then. I have no 401k either... If I had a trillion dollars I would not give one cent to Jeff Bezos or his Amazon. I congratulate you at being debt free at 80! Did you have any kids, or have you been unmarried for 80 years? Just curious, comparing life choices - etc. 

I am down to two properties now my home and a single rental property in gulf shores...

 How is the rental market? People seem to either love it or hate it, haven't seen any in-between. A single rental property would be more or less a hobby or your vacation home that you're utilizing well by making it pay it's own way. Is it an AirBNB kind of thing with short term lease, or do you rent out long term (over a year). Also, just curious because I have often thought about it myself.

 



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SELLC


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Nuffan wrote:

 

Words are important....

 

Inflation means devalued currency due to increased volume of currency...

 

PERIOD...

 

Price go up and down based on supply and demand...

 

inflation comes specifically from the money supply side of the equation...

 

The inflation and hyper inflation we are about to REALIZE is due to the Quantitative Easing under Obama (and Bush before him) as inflation is not immediately realized...

 

the price of goods increasing has two factors....1) supply and demand...2) inflation...tariffs may impact the supply and demand side of the equation...but inflation comes from artificial injection of currency into the economy...

 

 

inflation is caused DIRECTLY from increasing the volume of currency....

 

hyper-inflation is simply inflation that is compounded by a governmental need to adjust to a reduction in the value of tax dollars collected...  

 


 

I agree, words are VERY important! 

Title of the thread CLEARLY states - "Hyperinflation"... then we have you going off about regular old "inflation"..

Had you even taken the time to read the entire thread you would see I even went so far as to spell out that I was not talking about regular "inflation".

 

HYPER-INFLATION has ZERO to do with tariffs...

Eh, I think it does and pretty soon the term is going to be as worn out as the word "narrative". 

 

Now you are just being ridiculous to try and save face...

I don't have to save face, I am dealing with it right now and so is everyone else. We knew it was coming, it's here...  The nominal cost of good has increased. 

INFLATION = increase in the volume of currency, causing the reduction in it's value...

This does not take into account that the USD is currently the worlds benchmark currency. China for many decades now manipulating their money, subsidizing their industry to flush out competitors (ie: bankrupt and take over industry and IP) and ultimately trying to become the worlds benchmark.

 

HYPER-INFLATION is INFLATION compounded by governments need to adjust due to the loss of value in tax dollars collected...

 Hyperinflation is what we are seeing now, the nominal cost of goods have increased! As a small business person who does not have the luxury of subsidizing my existence beyond my worth, or even 30% of it, I can tell you things WAY before your comfortable ass feels them. Perhaps you ought to realize that you're just now getting off the ride and maybe don't have your finger on the pulse like you used to. I'm just say'n...

 

NONE IF IT HAS ANYTHING TO DO WITH TARIFFS...

Oh but it does, have another read - only this time put your glasses on and don't skim thru it! If not Hyperinflation, what less offensive term would you use to explain it?

Hyperinflation is often associated with some stress to the government budget, such as wars or their aftermath, sociopolitical upheavals, a collapse in aggregate supply or one in export prices, or other crises that make it difficult for the government to collect tax revenue. A sharp decrease in real tax revenue coupled with a strong need to maintain government spending, together with an inability or unwillingness to borrow, can lead a country into hyperinflation.[3]

 

https://en.wikipedia.org/wiki/Hyperinflation 

 



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Nuffan


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SELLC wrote:
Nuffan wrote:
SELLC wrote:

I feel an incumbent upon me to mention this 200% markup is only of the 25% tariff.

So in easy numbers, something that was $10 would result in a $2.50 increase.. You would take this $2.50 increase and times it by three and your $10 product will now cost $17.50 and while that's substantial I'd imagine that a lot of people are taking hits along the way to keep it from getting out of hand. The point is were now at the stage where it's going to be noticed and that is what hyperinflation is - the sudden rise in the nominal cost of goods. 

Some people, like Nuffan or PowerStroker may not have been able to pick up on that. We are all aware of regular "inflation", but what we are seeing is "hyperinflation".

Small business people like myself have a real good bead on things like this, since we don't get to run budgets in the red and the bank isn't writing us a check regardless of our debt. In fact I would say that banks are pulling back and that current banking and mortgage companies are completely prejudiced against small business-people! It's almost a form of discrimination because they abuse small business owners so badly in any financial underwriting. Banks and the Government have never been interested in small business or helping them expand, they want the big companies who are paper bulls and run the same kind of shell games as they do. Small business people are less likely to be influenced by unions or politics, they are less likely to cause any serious damage like the numerous massive corporations and governments who have defaulted to disastrous consequence to everyone. They punish small business owners by limiting their financial options and not allowing them access to insurance pools like big business and government. In fact, it's about time someone did something about it before the idea of anyone ever starting a new company is all but shut out. They also tax the hell out of the self employed - regardless if you made any money on paper or not. Why? Because they love the interest they can extort out of the small business person, they love the cash that comes in from small business, they love the fact they can charge more for insurance premiums while offering less. It's all done to keep the status quo, the status quo that Obama swore to break, but in turn only helped out big government, Wall Street and big business. 

So in a way, unless anyone here has 24 years experience running their own business - I guess you could call me the closest thing to an expert on this issue as any talking heads you guys might be watching or reading about! Because unlike Wall Street, the Banks and Big Business the small guy has to deliver and doesn't enjoy the luxury of running a deficit and having access. We get by with results and we can weather a hell of a lot more than the 2008 meltdown!

 

 

 

Everyone in general is paying the interest...it is simply more affordable to General Electric than a small business..current interest is still incredibly low...

Yes, everyone is paying the increase but big business has what PowerStroker often refers to as "corporate welfare" which is totally unfair to the small business people. I really thought Trump was going to do more for small business but I should have known better. IIRC Obama and the Government gave GE some serious tax breaks under the Obama administration along with some of that good ole' "corporate welfare". Problem with giving a business a huge break and welfare is that the next year they will want to do the same, again and again until they throw a fit and go bankrupt for the final act. Amazon is heading down that path right now, actually talking about failure and billion dollar losses! Amazon has ALWAYS been a freak-show.

Mega Corporation have for over half a century finance their day to day BECAUSE of what we have allowed o become of interest rates...

This is very true, I'll give you that! I get mailers all the time that brag about 2.5% interest on savings of $10k or more and I have to wonder - who actually does that!? CD's and other high yield savings have penalties where you will actually lose money by pulling it out early! You'd have to be a real retard to go for that kind of thing! Take liquid money and put an anchor on it with conditions!? For 2-5% interest!? WTF!? 

 

We have created the incentive to BORROW and removed the incentive to save...

 Agreed, it is all set up that way to keep the status quo. 

I have well over 6 figures in a high yield account...

 Very good, you obviously can't touch it without a penalty so you must just be filthy rich anyway and have no other means of making more with it. What is your high yield? Bet it's not even CLOSE to 5%!? And what it the penalty? You brought it up, share with us so we can get out heads around it.

interest last month was just sad...

 How sad? Less than 5% sad?

Yes I still work...although I am ready to retire...

 I admire your work ethic! I too hope that I can work well past my 80's! I find this inspiring, but at 80 you have earned at least a part time status to enjoy what you can as you won't be able to take it with you! 

My age and years of service exceed 80 in February, which means additional years have diminishing returns for me now...

 Please explain, perhaps I am just too young to see down the curvature of the earth to understand what that means. Give me some 80 year wisdom!

I like the income so I keep working...

 Money is good, seeing the account go up rather than down is also a really good feeling! With two teen kids, both driving and in high school I'll probably have to work 5 more years past the last ones graduation in order to see things start going back up but I feel lucky to have it now for them so even if they do fuck up in life they will have at least known a relatively nice childhood for which to set a benchmark. That's just my layman thoughts on the matter at the ripe old age of 43.

I have a FULL pension...I have a nice 401K I have a solid cash reserve and I have a small block of Amazon Stock...and I am essentially DEBT FREE...

 I have no pension outside whatever real estate I may gather from now until then. I have no 401k either... If I had a trillion dollars I would not give one cent to Jeff Bezos or his Amazon. I congratulate you at being debt free at 80! Did you have any kids, or have you been unmarried for 80 years? Just curious, comparing life choices - etc. 

I am down to two properties now my home and a single rental property in gulf shores...

 How is the rental market? People seem to either love it or hate it, haven't seen any in-between. A single rental property would be more or less a hobby or your vacation home that you're utilizing well by making it pay it's own way. Is it an AirBNB kind of thing with short term lease, or do you rent out long term (over a year). Also, just curious because I have often thought about it myself.

 

 I am 56 not 80....

 

My age added to my years of service surpass 80...

 

My rental is a weekly...and it rents all year long...while it makes money....I end up forking a large chunk over to the government...so it does not make as much as it could after you factor taxes...

 

I have a cousin who has two properties in the right location getting $3400 per night...I do not get that per week...but I own it...so it all becomes income except for what I use to keep the place in top notch condition...

 

The six figures drawing interest is unrestricted I can spend it tomorrow with no penalty...that is my cash reserve...

 

how low? 5%??? LMAO try under 2%...you can not get much over 2% unless it is a long term CD...

 

I am not rich and I am certainly not wealthy...I am however well off, but because I worked hard and saved money my whole life...

 

If I retire next year...I will likely find another job...and probably delay drawing on my pension for 3 more years...if I wait to 60 to draw on the pension I take no early retirement penalty...

 

inflation is the reduction in the value of currency due to excessive printing of currency...flood the economy with free money it devalues the dollar...

 

hyper inflation is the acceleration factor created by reduction of value...all of a sudden the dollars the government collects are worth less than they were...

 

inflation has a spiral effect...

 

 

 

 

 

 

 

 

 

 

 

 

 

 



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56!? You're still just a whipper snapper in the eyes of people who will have to wait until 70 before collecting retirement! Namely people like ME!

If you're renting weekly that has to almost be a job in of itself, at least a part time once a week kind of job.



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56!? You're still just a whipper snapper in the eyes of people who will have to wait until 70 before collecting retirement! Namely people like ME!

If you're renting weekly that has to almost be a job in of itself, at least a part time once a week kind of job.

 

 

I have a agency that takes care of the rental...I simply OWN it...



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If you're parking 100k in a low yield savings under or at two percent, well let's just say you're not utilizing that money well enough! What is three figures in a low yield savings really cost after taxes? I assume you worked for the money and didn't get it in some tax free inheritance or family gifting, but you never know - that could be your life savings, outside of your market dependent 401k of course. 

Still, it's a solid hand you claim to have there Nuffan! And having an agency take care of your rental is probably the best way to go on a weekly rental property, probably a whole heck of a lot less headache. Although your bro is turning $3k+ per night - lol, just ribbing you a little.



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If you're parking 100k in a low yield savings under or at two percent, well let's just say you're not utilizing that money well enough! What is three figures in a low yield savings really cost after taxes? I assume you worked for the money and didn't get it in some tax free inheritance or family gifting, but you never know - that could be your life savings, outside of your market dependent 401k of course. 

Still, it's a solid hand you claim to have there Nuffan! And having an agency take care of your rental is probably the best way to go on a weekly rental property, probably a whole heck of a lot less headache. Although your bro is turning $3k+ per night - lol, just ribbing you a little.

 

I am not "PARKING" anything...

 

Being a small business owner surely you understand the need for cash reserves...although it is a model used less and less...

 

I am in a safe area and learned several years ago, the best return on your money is to pay off all debt...what I save every month in interest that WAS going out would support many families in the US....lol

 



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Paying off debt is paramount to saving money, that is a fact!

But banks hate it... until the economy collapses and they put limits on how much of your money you may withdraw. 

If the money is in an account it's technically not cash, it's PARKED in an account. Should you goto the bank and try to withdraw $50k they may make you wait 24-72 hours while they order it in.

So lets be clear, CASH is CASH... Liquid savings parked in an account is NOT CASH MONEY. It's as liquid as the institution you have it.



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Paying off debt is paramount to saving money, that is a fact!

But banks hate it... until the economy collapses and they put limits on how much of your money you may withdraw. 

If the money is in an account it's technically not cash, it's PARKED in an account. Should you goto the bank and try to withdraw $50k they may make you wait 24-72 hours while they order it in.

So lets be clear, CASH is CASH... Liquid savings parked in an account is NOT CASH MONEY. It's as liquid as the institution you have it.

 

It is FDIC insured that is all that matters...it is not invested and it is not a CD...

 

it is tangible funds...



-- Edited by Nuffan on Tuesday 11th of June 2019 02:27:55 PM

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Oh I agree, and having just gotten robbed of $1,500 in "REAL CASH" I can understand exactly what you're saying about being "insured".

But money parked in a savings account is not "CASH", FYI.

It's liquid to a degree, but you could run into delays if large sums are required right away, or after the bank closes.

 



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Like for instance, if you wanted to pay Iran money, say a few hundred million in cash, you or I could not pack planes full of cash and have it delivered like Obama.

In fact, I don't know of anyone in the history of the United States that has done such a thing, except Obama.



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So any time someone gives me a hard time about using cash, or trying to use cash as a means to get a better deal - I'll just mention Iran and Obama...

I mean, apparently I am not the only one who likes cash... LOL



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In this Hyper-Inflation climate we are living it would seem Biden want's to know when you're spending more than $600

https://www.yahoo.com/now/irs-track-bank-transactions-over-140000522.html

Because you know Joe the hoe is VERY SERIOUS when it comes to kicking up his cut to "the big guy"...

But the Democrat Government can pack jet cargo planes full of cash and send them to Iran in the dead of the night without issue or oversight...



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I have always said Jack Dorsey was a bit SLOW on the uptake... He's just now figuring this out?

 

Twitter CEO Jack Dorsey's dire warning: 'Hyperinflation' will soon 'change everything'

https://www.yahoo.com/finance/news/twitter-ceo-jack-dorsey-apos-171320061.html

Makes me wonder why he has so much wealth... Then I remember that he is just like his retarded butt buddy Elon Musk, both with many hands up their puppet asses... They don't have shit, they are just the ugly mask behind the monsters...

Explains why they can't stand me and ban me all the time... just like that liberal shithole known as BenzWorld.org



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The hyper-inflation is here! And when they raise rates it's only going to get worse!



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Yes, steady as she goes lol !

Shell recently started to import 9ctane fuel here in Tasmania. I remember it being good-to-use when I lived on the mainland, but at $02:08 -per liter, they can can keep their 98 LOL !

Just for reference, Ampol ( formerly Caltex ) is selling 9ct for $01:79 -per liter...No doubt this will change when they see what Shell is getting away with charging...



-- Edited by Rastus on Friday 31st of December 2021 06:27:29 PM

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Yes it won't be long before you'll be buying the 98 for a few cents more... plus it smells so good!



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Yes, steady as she goes lol !

Shell recently started to import 9ctane fuel here in Tasmania. I remember it being good-to-use when I lived on the mainland, but at $02:08 -per liter, they can can keep their 98 LOL !

Just for reference, Ampol ( formerly Caltex ) is selling 9ct for $01:79 -per liter...No doubt this will change when they see what Shell is getting away with charging...

 

 

Ah the good old days...

Lucky for me I don't have any vacations planned, and I plan on driving as little as possible until this all cools down! 

What happens when people start pulling back, fixing their old cars instead of buying new? It's called recession... 

So we have all these elements, Hyper-Inflation which leads to recession.

And guess what, even with a now 800 credit score, I couldn't refinance my home if I wanted to! Good thing too because interest rates are up around 5% according to the news! So now we also have increased borrowing cost!

These are all really bad things for the economy... I would think the Government would be on the banks to make loans and spur spending to try and ride it all out!

So many people had been collecting either unemployment, or struggling to get by during the pandemic are going to need more flexable lending rules, at least for a few years until things are back to normal!

I just can't help but to feel like if these 30 year motgage rates are up almost 5% right now, then there is going to be a whole lot of people who just arent going to qualify or just be priced out of the market!

Same for people holding credit card debt after the pandemic... it's just something they really need to get ahead of right now!

People should be able to use their 2019 returns for the next few years, because honestly I don't care who you are, you might have done record numbers - but you would have spent record numbers just to do them! It's all relative! 

 



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Nuffan wrote:

Tariffs have ZERO impact on INFLATION....

 

You were saying?

https://www.nytimes.com/2022/06/14/business/economy/biden-china-tariffs-inflation.html



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This is a strategic & deliberate cash-in, so as to force the price-of-fuel up so high, that the electric-car-market suddenly appears to be the best driving option...

The price of fuel will not come down again imo. It will float around this mark for say the next couple-of-years, & then increase further parallel with inflation.

And the hybrid / electric car market will flourish...( For a while anyway ).

 

***Oh yeah, those concerned with fuel consumption of their beasts, decades of this-type-of-fuel prices in Oz has proved that the best-bang-for-buck engine to have for the average sedan, is of 5.0 ltr capacity. You can expect around 9-10-ltrs consumption per 100-k's at Hwy speeds...This mileage is the equivalent to any 6-cyl consumption in similar conditions.

Also, keeping your rpm's below 2,000-rpm as you move-through-the-gears over a weeks running will see up to 1/8 to 1/4 of a tank in fuel savings.



-- Edited by Rastus on Thursday 16th of June 2022 06:44:00 PM

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Rastus wrote:

Also, keeping your rpm's below 2,000-rpm as you move-through-the-gears over a weeks running will see up to 1/8 to 1/4 of a tank in fuel savings.

 

Funny... the lingo that the kids now days will be talking is Kw spikes... at least that is how it was explained to me after viewing my test drive power usage of that 2022 Tesla Model 3... lol

I agree with you that keeping it under 2k will keep gas milage useage low, and on my long trip out west I seen averages around 28 MPG and even once in the low 30's! This on a 5.7 liter in a light sports car. 

I think when I seen the 30's is was a long strech of downgrade with a 55 MPH limit... I never seen that average again since pulling off at a rest area. More than likely just happend to be perfect conditions for a long period.



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