Hyperinflation Warning

Discussion in 'Property Market Economics' started by MTR, 26th Oct, 2021.

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  1. MTR

    MTR Well-Known Member

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  2. twobobsworth

    twobobsworth Well-Known Member

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    In my automotive world we are currently seeing price rises of 10-15%, this was on top of around 5% up earlier in the year.
     
  3. Robert Chatsworth

    Robert Chatsworth Well-Known Member

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  4. Valhiem

    Valhiem Active Member

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    The US has created so much money in the last 18 months, The US federal reserves balance sheet went from 4.1 trillion to 7.1 trillion in less than 12 months.

    There's a very big possibility that inflation will be very high for the next few years and Jack Dorsey is a smart man, I would be more inclined to listen to him than the dinosaurs that are in charge of the US government at the moment.

    I think Bitcoin could continue to skyrocket if inflation remains so high.
     
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  5. Gen-Y

    Gen-Y Well-Known Member

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    Stagflation is most likely outcome than Hyperinflation.
    I will eat my hat if Hyperinflation happens in the next 3 years. :rolleyes:
     
  6. Bluechips

    Bluechips Well-Known Member

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    It's a bit of a conflict of interest tweet as he owns a lot of Bitcoins.
    But why are we still printing money now if the supply cannot keep up with the demand for at least 12 months? it only adds more fuels to the flame...
    Tapering should start sooner than Feb 2022.
    Anyone wants to bet on the inflation data coming out tomorrow? I reckon it will be above 5%.
     
  7. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    Price rises may occur but that isnt hyperinflation. Jack Dorsey is a tech start up founder. He isnt a economist. Its like asking what Elon Musk things about covid. Disregard.

    For many more months there will be price shock adjustments based on global supply chains needing to equalise with labour shortages, materials and supply chain links. Some may rise, some may fall. I'm actually tipping both rises and falls for things like airfares and accomodation and some drop prices to stimulate demand and they have low operating costs in the new world order. But then oil prices will hit airfares. At present consumers are cashed up so are more tolerant to paying some high prices.

    When we see materials supply in contruction resume supply should exceed some demand and it may moderate.
     
  8. 2FAST4U

    2FAST4U Well-Known Member

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    Stagflation could occur. Most people are still receiving wage increases of <2% unless they jump ship to other companies. The government is also keen for public servants to have minimal pay increases since the Federal government has a budget deficit that would now surpass $1 trillion.
     
  9. Traveller99

    Traveller99 Well-Known Member

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    A1FB5843-D98F-4816-A060-1BBD396CAA75.jpeg
    Saw this the other day. Can't verify its authenticity though.
     
  10. Colin Rice

    Colin Rice Mortgage Broker Business Member

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    The cost price of bricks has gone from $1 to $3 in 12 months and another $2 per brick to lay for a grand total of $5 per brick.

    Looks like it's already here, covertly or coming soon???
     
  11. Lacrim

    Lacrim Well-Known Member

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    What will happen to property prices during a period of hyperinflation?
     
  12. frankjeager

    frankjeager Well-Known Member

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    if true hyperinflation was to occur property prices would increase hugely. but so would a loaf of bread
     
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  13. BB5

    BB5 Well-Known Member

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    They would likely increase, but those highly leveraged may end up in some serious pain
     
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  14. Colin Rice

    Colin Rice Mortgage Broker Business Member

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    Why cash buffers in offset are a safeguard, even if borrowed IO and fully offset.

    There will likely be pockets of opportunity in the mortgage belts to solve highly leveraged players problems.

    PS. why the ability and skillset need to be in place to adapt by altering income and/or replacing it when things go south.
     
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  15. Squirrell

    Squirrell Well-Known Member

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    We already have had hyperinflation for the last 20 years, but its in land prices that dont get included in the cpi.
     
  16. Wilko

    Wilko Well-Known Member

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    How so?
    The higher leveraged the better in hyperinflation I would have thought.
    Asset values go up and debt gets inflated away.
     
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  17. paulF

    paulF Well-Known Member

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    That is correct as long as they can service their mortgages
     
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  18. Laker

    Laker Well-Known Member

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    Or it’s like asking Bill gates for advice on covid?
     
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  19. Squirrell

    Squirrell Well-Known Member

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    And if everyone else can service them. Cause if they cant then prices crash. There is a big difference between high inflation low debt a la 80s v what we might be running into here.
     
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  20. SatayKing

    SatayKing Well-Known Member

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    Probably the cost of many items will increase. Even the price of a solar panel has due to the price rise of silicon and now shipping costs as a result of supply chain problems and bottlenecks.