it is going to get worse in the US and Europe. for now the overleveraged structure is getting unwound and purchasing power is stillreasonable. it will be followed by hyperinflation brazilian and argentinian style or better still like the weimar republic as the state takes over. there will be capital controls and movement control. you will need a permit to move from one part of the US to another. the plans are being created now under the guise of terrorist control.. the banks are failing and this will be followed by the insurance companies. the constant bailouts will lead to hyperinflation. the government is only interested in protecting government workers. we will soon be riding the bicycle argentnian style.
And you know this how? If you had looked at the actual numbers, you'd know that a few trillion is a drop in a bucket compared to what will be needed to start hyperinflation.
no-one here on ET has the real numbers, so the same question would apply to you as well but one thing does make sense, house prices can only drop to a certain point, first off their is a cost to building a house, it's not like the material for building them has become cheaper, and second houses can be rented out unlike company shares, were you get nothing if you are holding on to a losing position and three real estate prices are much higher in some third world countries and you don't see them dropping, so you can assume there will some foreigners who will be buying properties in the US that americans and other foreigners couldn't afford to keep
With the aggressive spending Washington is undergoing it is truly hard to doubt that inflation will not happen. So how does one come to the conclusion of massive amounts of inflation? First of all we have Washington that has convinced itself and much of the nation that as long as they just restart the flow of credit everything will be fine. What Washington does not understand is that credit comes from savings. You need money to actually lend money. Before Americans can borrow money somebody needs to save it. The walmart greeter is not going to solve the global credit crisis with their 13 dollars. What we need is for the credit/savings to go to the producers/businesses. Unfortunately Obama thinks if we print enough money and then put it into the banking system the banks will give out loans and we will have economic growth. Unfortunately all we get out of that is massive inflation. Obama is determined to create credit out of thin air. That spells inflation and a lot of it. It is safe to say that inflation will occur in the coming months. We don't know if hyperinflation will occur yet or not. It all depends on whether Obama continues these massive spending packages. Will Obama/Pelosi continue spending massive amounts after seeing no immediate improvements in the credit crisis? You better believe it.