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Started by wglassfo - March 19, 2020, 10:29 p.m.

What do you think the chances are for inflation

When I see the congresss passing stimulas plans or what ever name seems to fit, and other countries doing the same

How much deficit spending can we tolerate. I would say a lot, so long as int stays low

Now here in Canada we have had a looney worth much less than the USD

We are sort of like SA in that our currency allows us to make a profit, growing corn and beans. The trick is to sell more dollars than you spend

What I am constantly reminding the family is our experience with 22% int

Keep the debt low and if you do have debt, look for the flexibility to refi at fixed rates 

Some short term variable is okay as one has to think low int will be with us for some time

But what about a 25 yr ammortized farm land purchase

Today, the USA banks will likely be the banker to the world

A crisis of confidence is hard to see at this time, as all other banks are also in the game of printing of fiat

The warning signal I look for is when wages fail to keep up to rising prices

If posssible, keep the option open to go to fixed rate

Nothing says we will have low int rates for the next 10-25 yrs

I don't know what russia and china could do, to foster a loss of confidence in the USD, if they floated a gold backed currency

The thing that I think about is this

Does china really want a loss of confidence in the USD

Would that not make their exports more expensive and un-competative

I think the USA will ramp up some domestic manufacturing, so maybe china doesn't care to sell as much to the USA if they can destroy the USD

Maybe china is putting their future in the silk road with markets from china to the English Channel

A gold backed currency is some thing most people have forgotten and have no experience with such a concept

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