New Home Owners And Snagging Forum

Investments => Financial Markets and the economy => Topic started by: The Prophet on March 16, 2012, 08:52:28 am

Title: How much is your money going to be worth
Post by: The Prophet on March 16, 2012, 08:52:28 am

Quantitative Easing (QE) is destroying the value of your savings, pension pots, and creating inflation that has the potential to spiral out of control.
Once the top finally comes off the bottle, the inflation genie will be hard to put back in!

As Tim Price said in Money week:
"The question you should be asking is not what gold ought to be worth in dollars, but what the value of the dollar can possibly be when it has no backing other than a subjective faith in the US political system."

What is your money worth, if a few extra billion pounds can magically be produced out of thin air by a desperate Bank of England trying to keep the whole flawed banking system going.

Most individuals and fund managers should be focussing on the preservation of wealth against the purchasing power of money, making every effort to protect capital from the "fraudulent manipulations of governments and central banks."

As David Stockman the former White House budget director said last week:
"Capital preservation is what your first, second and third priority ought to be in a system that is so jerry-built, so fragile, so exposed to major breakdown"

Buying things (like Gold) now before your savings become near worthless is the only way to maintain your real wealth this decade.

Title: Inflation is government thieving by stealth!
Post by: Philofacts on June 27, 2012, 09:30:22 am

With an inflation rate of just 3% (it has been much higher recently) £100,000 will be worth just £47,761 in 25 years.
Buy a £100,000 house and in all likelihood it will be worth £300,000 when you have paid the mortgage off in 25 years.

So the government is using inflation to reduce the national debt in real terms through QE and other measures by devaluing your savings!  This enables government borrowing to continue without adding to the overall debt in real terms, as inflation eats up the extra borrowed given enough time.

Governments like inflation, it hides their fiscal incompetence at everyone's expense!