In the US, why are many prices doubling, tripling? What is going On?

by Fisherman 25 Replies latest jw friends

• 

  Elsewhere

  It's all very simple: It's time to pay the piper!

  For the last 50 - 75 years America has been living at a high standard of living by paying for it using loans from overseas. Our big houses, cars, cheap food and inexpensive house-hold products were all paid for using credit cards and more recently home equity loans. Somebody somewhere was loaning us that money. It didn't just come from nowhere. It came from overseas investors... very smart investors at that.

  The American population has not only maxed out their unsecured credit cards, they also started leveraging the sacred equity in their homes in order to buy even more. America has literally run out of things to leverage its debt with... and its time to pay back the loans.

  One way or another we will pay. Either through direct payments or through price increases. The overseas investors really don't care how the debts are paid... only that they are in fact paid.

  America is about to learn a very hard lesson about living within its means.

  Who is to blame?

  • Do you have maxed out credit cards? You are to blame.
  • Do you have a home equity loan used to pay for anything other than a life-threatening situation? You are to blame.
  • Do you have an 80/20 Home loan? You are to blame.
  • Did you buy a house "as an investment" expecting its value to go up? You are to blame.

  You can't get something for nothing. It's time to pay the piper!
• 

  sammielee24

  America is about to learn a very hard lesson about living within its means.

  Who is to blame?

  • Do you have maxed out credit cards? You are to blame.
  • Do you have a home equity loan used to pay for anything other than a life-threatening situation? You are to blame.
  • Do you have an 80/20 Home loan? You are to blame.
  • Did you buy a house "as an investment" expecting its value to go up? You are to blam

  Nope to all those questions - but I definitely agree - a hard lesson is going to be learned and very soon. Once the housing crunch started, people didn't have any money so they whipped out every credit card they could find and now they're all maxed out. I smelt something fishy when I saw a whole bunch of twenty somethings with their babies in strollers in Macy's and Nordstroms buying up a storm and yep, on credit. Easy credit, faster debt. That debt has risen and the banks aren't collecting on that debt now either. Car loans are defaulting in masses. People have been living on a cloud for way too long - sammieswife.
• 

  freydi

  Let me see if I can explain classical inflation. Obviously the price of oil has an impact. But usually temporary price surges in raw materials even out in relatively short order. But let's say that
  
  country A has 10 dollars and country B has 10 dollars
  
  If country A prints 10 more dollars without any increase in the underlying value, (which is another name for counterfeiting) they now have 20 dollars that are still worth 10 dollars of country B's currency. So in real terms
  
  when the country A doubles it's supply of money relative to the country B.
  That makes country A's dollar worth only 50 cents in terms of country B's currency. So let's say
  
  $10 of country A will buy 1 bottle of imported wine from country B. Now country B will simply require $20 from country A for the same bottle of wine even though the bottle of wine hasn't changed intrinsiclly.
  
  Hope that makes sense.
• 

  moshe

  American prestige was in tatters abroad and inflation was in the double digits and interest rates were so high it was impossible for Americans to finance large purchases like homes and cars.

  I don't think that wars in Iraq and Afganistan have restored our prestige. No, but Bush's policies have instilled hatred of the US in the world. The real estate bubble that was fueled by low interest rate ARM liar loans caused home prices to explode- now if that isn't a form of inflation , I don't know what is.
• 

  jaguarbass

  This ding Named W. stole the election. The people of Amerika voted for a man named Al Gore. Then instead of running the country he went golfing. He took more days vacation than any other president.

  Allegedly some rag head noticed this and attacked New York.

  Instead of going after the raghead who dissappeared in Affganistan.

  The dingbat invaded a former allie of the United States who betrayed the dingbats Daddy.

  This has been going on for 6, 7 years. People took their money out of the stock market, so business has been idle. The war takes a lot of gas. And the ding bat has pissed off some of our oil producing allies so they are screwing us by charging high prices for oil.

  The price of oil affects everything. Everything moves by truck. People have to drive to work.

  The ding bat is a carpetbagging new englander who became an oil man cowboy. He and his friends want to get all the money they can out of their oil reserves before they spend Amerikan money on a new form of energy.

  A form of energy that may be more difficult for them to tax and profit from.
• 

  moshe

  A form of energy that may be more difficult for them to tax and profit from.

  The war in Iraq/Afghanistan has cost almost a trillion dollars so far- that money could have paid for enough wind turbine farms on Federal land to provide electricity for over 33% of the homes in the USA- NOW that bit of leadership would have given the oil cartel a bloody nose. Instead we have a massive debt for an illegal war, that our country will be paying off for generations to come.