Comments on: Monetary Inflation: How Increased Paper Wealth Can Translate into a Lower Standard of Living

By: How a Fraudulent Global Monetary System Creates Boom/Bust Cycles | The Underground Investor

Tue, 21 Apr 2009 00:25:35 +0000

[...] When I inform people of my very simple way to assess the future direction of real estate markets based upon monetary policies being implemented in their country, they sometimes counter with the question, “What about the trillions upon trillions of currencies being injected into the EU countries, the US, and Japan to stimulate the economy? Won’t that cause real estate markets to keep rising?” Again I answer their question with a question of my own. I ask, “So what if these actions succeed in inflating and distorting markets even more. Do inflated asset prices truly create real wealth and is a bigger bubble really beneficial to you as an investor?” Even if higher, inflated real estate prices and a greater bubble transpires as a result of irresponsible monetary policy, an inflated price of a real estate asset does not necessarily translate into an increase in real wealth. What matters to real wealth is simply the purchasing power of your money, not how much of it you have or how much an asset is worth. During periods of high inflation, an asset can grow quite significantly in monetary terms while simultaneously destroying one’s wea…. [...]

By: The Underground Investor - Learn the best and safest ways to invest money during bear markets, the dollar crisis, and the unfolding global economic crisis

Sun, 06 Jul 2008 03:16:35 +0000

[...] June 26, 2008 – The One Question That Will Have the Greatest Impact on Your Financial Future May 14, 2008 - What’s Driving the Price of Oil Higher? It’s the Dollar, Stupid! April 30, 2008 – How Low Will the Feds Go? April 17, 2008 - Monetary Inflation. How Increased Paper Wealth Can Translate into a Lower Standard of Living March 3, 2008 – Why Investors Will Never Make Money in this Bear Market Feb. 20, 2008 - The Secret to Building Wealth in Volatile Markets Feb. 6, 2008 – Is Recession in the U.S. Coming? We’re Already in One. Jan. 28, 2008 – The Outcome of the Fed’s Interest Rate Cuts? History is the Best Oracle. Jan. 24, 2008 - The Fed’s 0.75% Interest Rate Cut – A Recipe for Future Disaster Dec. 7, 2007 - The Dollar Panic. Is it Real? Sept. 19, 2007 – Signs of a Peak Investment Crisis Keep Coming June 18, 2007 – Alan Greenspan’s Call of Checkmate on China is Premature June 17, 2007 – PIMCO’s Bill Gross and the Economist Agree with SmartKnowledgeU 6 Months After the Fact! May 28, 2007 – The Politics of Higher Oil Prices May 26, 2007 – Asian Countries Pooling Reserves to Protect Themselves from the Incredible Shrinking Dollar, Part II May 25, 2007 – Asian Countries Pooling Reserves, Part I May 3, 2007 – The Death of the 3-Year Treasury Note Apr. 1, 2007 – The Next Cold War Will be an Economic One Jan. 25, 2007 – Dollar-Denominated Bonds Faltering Jan. 9, 2007 – Use the Longtail of Investing to Accurately Predict Dollar Behavior Jan 7, 2007 – 10 Reasons Why Dollar-Denominate Bonds Aren’t Safe Dec. 21, 2006 – Iran Presents More Trouble for the U.S. Dollar Dec. 7, 2006 – The U.S. has Perfected the Incredible Shrinking Dollar [...]

By: Sunshine Kills Vampires » Blog Archive » Pay More “Toilet $$” for Black Gold

Wed, 14 May 2008 15:45:24 +0000

[...] When goods are priced in unstable, highly inflated currencies, then their prices soar primarily due to the significant debasement of the currency they are priced in. Furthermore, as I explained in this previous article, the debasement of currency often gives rise to an illusion of wealth creation while in reality, it actually destroys real wealth. [...]

By: The Underground Investor - The definitive investment blog for investment news not discussed in the mainstream media

Tue, 13 May 2008 14:22:13 +0000

[...] So what does this tell us? In very simple terms, when goods are priced in stable currencies, their prices remain much more stable as well. When goods are priced in unstable, highly inflated currencies, then their prices soar primarily due to the significant debasement of the currency it is priced in. Furthermore, as I explained in this previous article, the debasement of currency often creates an illusion of creating wealth while in reality, such actions destroy real wealth. [...]

By: The Underground Investor - The definitive investment blog for investment news not discussed in the mainstream media

Wed, 30 Apr 2008 15:46:59 +0000

[...] The reality still remains, however, that if the Feds cut interest rates again later this afternoon as expected and feed a continuing rally in U.S. markets, the rally is largely irrelevant because of the great lengths of monetary inflation that have already been imposed upon the economy to provide the current levels of market stability. To fully understand this concept, merely read my article here of How Increased Paper Wealth Can Translate into Lower Standards of Living.Technorati Tags: monetary inflation, dollar debasement, increasing prices [...]