Hyperinflation
*sigh*
I think everyone in the world should just be psychologically prepared for: Hyperinflation - Wikipedia, the free encyclopedia If/when that happens, ALL paper currency will become totally worthless, and food will have to be rationed... to say the least! As for what more could/will happen, just use your imagination, and think of the worst... |
Can we have a job description together with all the values?
So many rich people here!!! All 300k+ cash |
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26 yr old, shipyard industry, gross pay 3500. Base salary low. Savings 14000.
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I read this wiki article several times before. Just needed to point out something :
To get into some serious understanding on hyperinflation, you must remember that it cannot be all currencies in the world hyperinflate at the same time. Usually, it will be the case of a single currency/country facing hyperinflation wrt the rest of the world. If all the world currencies hyper inflates, everyone is back at the same "equivalent". Everyone will be asking for more zeros in the paycheck, etc. Previously, the world did not have that many financial instruments like swaps, options etc traded freely. So such bubbles could form more easily. Now we have.It does not mean we dont have bubbles, but these bubbles come in more complexity because even individuals can login to swap out their forex exposure now. When a currency faces hyperinflation, naturally people will do a swap out of that currency into something else like usd. You only get stuck if you hold that currency that is facing hyperinflation or for some reason you cannot swap out. So, in all likelyhood, there will still be rich people even when the currencies come down and mayhem is prevalent in the streets... the only thing is you dont know whom holds the powers now... Quote:
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Just take 2 of the most important commodities: OIL & WHEAT. Not only will the market prices of those 2 commodities be ridiculously high, the actual supply of the commodities for sale will be so limited that there could be NO MARKET for them! What happens when there's no market for a commodity that happens to be a basic necessity for humans to survive, such as WHEAT? Or even worse, what if there's CROP FAILURE around the world as well? F-A-M-I-N-E And this won't just affect the USA alone because, for example, even if the SGD becomes so strong that the USD/SGD rate reaches parity, what's so good about that if the price of oil reaches a thousand or ten thousand or more USD per barrel? Wouldn't the price of oil ALSO reach the same price in terms of SGD as well? And this is all because the almighty USD happens to be the RESERVE currency of most of the countries of the world. How Hyperinflation Will Happen In America Quote:
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(And if anyone wants to know how that can happen, just imagine that $2 loaf of bread doubling in price every week for 20 weeks; that's true hyperinflation) Quote:
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>simply become old-fashioned simple fishing/farming villages again!
This is too alarmist. Even in Zimbabwe, during the worst of the hyperinflation days, people got by. There are ways to get around - bartering is one example. And that was Zimbabwe. Developed countries should be able to cope much better. |
wow. .. think better stay on island , buy fishing boat and learn to feed myself if your predictions are true.
Anyway, here is some thoughts 1. U.S. Treasuries get dumped by all countries, and COMMODITIES boom to the moon. When US gets dumped, of course, all items priced in USD will shoot up. But that does not mean the other currencies will not counter react against usd. Meaning USD/SGD will drop significantly as well. Hence SGD/bbl will not see such a great price appreciation impact as USD/bbl. 2. Not only will the market prices of those 2 commodities be ridiculously high, the actual supply of the commodities for sale will be so limited that there could be NO MARKET for them! Why is supply limited or No market for commodities ? Supply is disrupted due to supply disruptions like crop failure, war, etc. Not due to collapse of currency. 3. Originally Posted by lazyplane Everyone will be asking for more zeros in the paycheck, etc. I doubt anyone will even be bothered if the price of a $2 loaf of bread reaches $2 million in less than half a year! LOL (And if anyone wants to know how that can happen, just imagine that $2 loaf of bread doubling in price every week for 20 weeks; that's true hyperinflation) You have answered my point exactly. Will you work for say 10k per month salary if your food cost is going up to $2 million ? No right ? You will resign, get a new job that pays $100million etc. In short, individuals will rebalance to a new equivalent benchmark to survive. Finally, this post is too negative for me to think further. But i sense you predict the world is going to die, and we are all going to rot etc. And the way you see it, there is no solution, only to suffer. So if this is your point, then dont do anything right ? Or if you do have a solution, then pls share. |
Sloshing with liquidity
The many postings I see here are consistent with the observation that singapore is flushed with liquidity. The strong property market showed little sign of abating despite the latest government measures.
People here are earning good incomes and have not many avenues to put their money except in properties and stocks. While I am not surprised to see people in their fifties or even forties with more than 1 fully paid up private homes and cars and flushed with cash, I was really surprised by the younger ones claiming likewise. But then again, when I was in NUS recently, I saw many students driving to attend lessons, and we are talking Mercs, BMWs here and not your beat-up Japanese cars. So who am to I say who is rich and who is not? |
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