Join the Meeting Place for Moms!
Talk to other moms, share advice, and have fun!

(minimum 6 characters)

Do you think we're still at risk for deflation?

Well, the government has thrown a ton of money into the system but it looks like things are starting to slow down again with the latest economic news. Do you think we're still at risk for deflation?

Answer Question
 
smalltowngal

Asked by smalltowngal at 9:16 AM on Apr. 15, 2009 in Politics & Current Events

Level 1 (-9 Credits)
Answers (9)
  • Always at risk
    Anonymous

    Answer by Anonymous at 9:17 AM on Apr. 15, 2009

  • I think we are at risk for hyper inflation.
    Anonymous

    Answer by Anonymous at 9:20 AM on Apr. 15, 2009

  • I think we are at risk for hyper inflation.

    At least it wouldn't be deflation.
    smalltowngal

    Answer by smalltowngal at 9:23 AM on Apr. 15, 2009

  • No, but I don't really like the idea of paying $15.00 for a loaf of bread.
    Anonymous

    Answer by Anonymous at 9:37 AM on Apr. 15, 2009

  • Time to stock up on baking supplies and lightbulbs....Black Market items pay handsomely to those who have or can make things!!! LOL
    Anonymous

    Answer by Anonymous at 9:53 AM on Apr. 15, 2009

  • Time to stock up on baking supplies and lightbulbs....Black Market items pay handsomely to those who have or can make things!!! LOL

    You don't even want to know how much coffee I have in this house. I'm worried about coffee prices doubling or worse.
    smalltowngal

    Answer by smalltowngal at 9:57 AM on Apr. 15, 2009

  • I think we are at risk for hyper inflation.


    At least it wouldn't be deflation.


    I think that is the dumbest statement I've ever heard. Do you know what hyper inflation will cause?

    Anonymous

    Answer by Anonymous at 12:05 PM on Apr. 15, 2009

  • Absolutely. I have a degree in finance and spent a number of years in the banking industry as a trust officer. We are so close it scares the heck out of me.

    Here is what we are doing to meet the challange.

    Stocking up on basic supplies; food, paper products, medicines, propane and gas.

    Paying off everything we absolutely can. Obviously we stll have the mortgage and car loans (0% interest on car loans). We are making additional "principal" payments on the mortgage.

    LEAVING the stock in our portfolio. LEAVING our 401K's alone.

    Investing other liquid assets into gold or silver.

    We are also planting a garden this year.
    yourspecialkid

    Answer by yourspecialkid at 1:01 PM on Apr. 15, 2009

  • At least it wouldn't be deflation.



    I think that is the dumbest statement I've ever heard. Do you know what hyper inflation will cause?

    Yes. Hitler came to power when Germany was facing hyperinflation. People will be scared to hold on to money and as soon as they do, they put it in commodities or something actually worth value.

    In a deflationary spiral, things decrease in value. You get people walking away from their houses as they drop in value. Farmers would loose money because their crops would loose value by the time it came to harvest. That's why during the Great Depression the government was paying farmers to let their crops rot. In a fiat economy, loaning is essential to keep money moving. In a deflationary environment, loaning would come to a stand still.
    smalltowngal

    Answer by smalltowngal at 9:12 PM on Apr. 15, 2009

Join CafeMom now to contribute your answer and become part of our community. It's free and takes just a minute.
close Cafemom Join now to connect to other members! Connect with Facebook or Sign Up Using Email

Already Joined? LOG IN