Sunday, June 16, 2013

10 Finance Facts

6 comments:

  1. If other international currencies and bond markets fail how much, in your opinion, would the u.s. bond market be stabilized by money flowing into the u.s. because of its status as a reserve currency?

    assuming that the other markets fail before our house of cards is revealed.

    ReplyDelete
  2. It would benefit the United States bond markets significantly. The recent European bond market troubles were very bullish for U.S. debt, and I believe that the coming Japanese problems should also increase demand for U.S. debt. In the short term. Ultimately the markets will figure out that the U.S. debt markets are just as toxic fundamentally, if not more, than other areas around the world.

    ReplyDelete
  3. Tuna, in your estimations, what's the likelihood of hyperinflation setting in?

    ReplyDelete
    Replies
    1. There is 100% chance that it will occur. The question is when. It could take decades in America. I think it is more likely that it would occur in a country like Japan first, but based on the fact that the all currencies around the world are fundamentally worthless, it is only a matter of time before a free fall in value meets the paper market.

      Delete
  4. Thanks Tuna. What are the remedies that counteract hyperinflation? Gold & silver? I'm considering Goldmoney as an avenue. They seem legit.

    A strategy for the present (In hope you don't mind my paraphrasing):

    1. Go big on cash to buy reduced priced assets, but watch out for hyperinflation. Any tips on balancing the two polar opposite aspects? ie. cash heavy vs. hyperinflation

    Is the property market too much of a bubble to venture into now?

    We talked about getting out of/into the AUD sometime last year. It looks like the currency is finally moving south.

    ReplyDelete
    Replies
    1. Cash is king right now. I think a portion of your wealth in precious metals protects you a hyperinflationary sceanrio. I don't know where you live in the world, but I think it is unlikely to break out in America first and more likely to occur in a country like Japan.

      Aussie dollar is looking much more attractive. I hope it continues to fall.

      Real estate depends on where you live but I don't like residential real estate in America because of rising rates, shadown inventory, and the current euphoria in the market.

      But I look at things on a long term (years) basis. Prices will probably be higher next month.

      Delete