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Do you agree with Twitter CEO that we are heading toward hyperinflation?

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  • Oct 29th, 2021 11:34 pm
Deal Addict
Aug 8, 2010
1215 posts
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Ottawa

Do you agree with Twitter CEO that we are heading toward hyperinflation?

https://www.cnbc.com/2021/10/23/twitter ... world.html

That scares the hell out of me........it means my money is going to be devalued drastically if not worthless. Really regret I didn't buy real property when it was cheap and I can afford.

Do you think he is right? I hope he is wrong.
Last edited by 1000islands on Oct 23rd, 2021 8:00 pm, edited 2 times in total.
53 replies
Deal Addict
Aug 8, 2010
1215 posts
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Ottawa
If that happens what will happen to the stock market? real properties is going to the moon again? is real properties a sure thing to keep value? don't we need to pay property tax?
Deal Addict
Mar 3, 2018
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1000islands wrote: If that happens what will happen to the stock market? real properties is going to the moon again? is real properties a sure thing to keep value? don't we need to pay property tax?
Real properties going to the moon will likely not happen as high inflation means high interest rates. Like the 18% mortgage interest rates during the inflationary 80's. Look up how big a mortgage you would qualify for if interest rates started going over 10%. That limits the amount people can offer on a property.
Deal Addict
Aug 8, 2010
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DaveTheDude wrote: Real properties going to the moon will likely not happen as high inflation means high interest rates. Like the 18% mortgage interest rates during the inflationary 80's. Look up how big a mortgage you would qualify for if interest rates started going over 10%. That limits the amount people can offer on a property.
Looks like high interest rate is the only way to deflate the hyperinflation, but the problem is they won't raise the rate because that means the collapse of the economies world wide. what will happen to the present people who borrowed heavily to buy a house, can't they still afford their mortgage payment?

don't know how things will play out

I am wondering if it's better for me to suck up to buy a property at the inflated price now or wait....
Deal Addict
Aug 8, 2010
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then there are money say the stock market is going to crash soon. Well, if there is hyperinflation we can't keep the money in the banks and have to invest in the stock market. then how can it crash?
Deal Addict
Mar 3, 2018
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Yes high interest rates means some people can't afford the mortgage payment on renewal. In the 80's many condo investors went bankrupt facing large interest rate increases and falling property values. Governments may not have a choice but to raise interest rates or face a total collapse like Venezuela where their currency becomes worthless.
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Sep 21, 2007
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you worry too much.. long term we will be fine. This is normal lol. Face With Tears Of Joy
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Deal Addict
Aug 8, 2010
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DaveTheDude wrote: Yes high interest rates means some people can't afford the mortgage payment on renewal. In the 80's many condo investors went bankrupt facing large interest rate increases and falling property values. Governments may not have a choice but to raise interest rates or face a total collapse like Venezuela where their currency becomes worthless.
So I should wait 5 years(as most people have at least 5 years fixed rate) later when people can't afford the mortgage payment to by a house? I really already f up royally when 1-2 years ago, or many years ago I could buy a house but I was picky and penny pinching to actually buy. All the houses I could have bought look dirty cheap now. oh, how I hate myself now.
Deal Expert
Oct 7, 2010
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No. Central bank will just raise rates.
Jr. Member
Aug 22, 2014
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I think if anything will collapse it will be the crypto market. Its basically worthless and just built up by hype and criminals buying it up.
Deal Addict
Dec 22, 2007
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1000islands wrote: So I should wait 5 years(as most people have at least 5 years fixed rate) later when people can't afford the mortgage payment to by a house? I really already f up royally when 1-2 years ago, or many years ago I could buy a house but I was picky and penny pinching to actually buy. All the houses I could have bought look dirty cheap now. oh, how I hate myself now.
don't feel bad I was doing that for the last 5 :)
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Dec 12, 2009
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Given how personal and sovereign debt is so high, it should not take much in the way of interest rate adjustments to cool things down really fast. As long as stagflation is not in the cards we should be fine. We should look to Japan, where interest rates have been quite low for a long time and there is no systemic inflation problems. The population in the first world countries and China are aging which is deflationary. As for stock market performance, the S&P 500 seemed to behave reasonably well in the 1970s and 1980s, way better than the lost decade of the 2000s.

https://www.macrotrends.net/2526/sp-500 ... al-returns
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Deal Fanatic
Oct 7, 2007
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I am not disagreeing with this claim but since when does a social media CEO chime in on financial predictions? Is there some knowledge that he is privy to that adds credibility to what he is saying? I am not doubting him but just find the context of this statement a little bit unusual.
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Sep 18, 2016
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Twitter CEO? Who gives a bit, what he thinks.
"Do not allow yourself to become resentful, deceitful or arrogant"
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Nov 28, 2016
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choclover wrote: I am not disagreeing with this claim but since when does a social media CEO chime in on financial predictions? Is there some knowledge that he is privy to that adds credibility to what he is saying? I am not doubting him but just find the context of this statement a little bit unusual.
I mean he is also ceo of square...

Ceo of 2 tech giants > random internet guy...
Sr. Member
Feb 24, 2018
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The problem is that 'no Feds will just raise interest rates' except they aren't raising interest rates. They're actually coming out and saying to expect inflation to continue for the forseeable future and not using the tools available to them to fight this.

You can get into conspiracies about why they aren't doing anything but the basic math says that they tried to print away the problem and if they raise interest rates to fight inflation then they risk a recession which no one politically wants so you get this slow march into inflation with nothing to combat it.
Deal Addict
Aug 8, 2010
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PHuth2 wrote: The problem is that 'no Feds will just raise interest rates' except they aren't raising interest rates. They're actually coming out and saying to expect inflation to continue for the forseeable future and not using the tools available to them to fight this.

You can get into conspiracies about why they aren't doing anything but the basic math says that they tried to print away the problem and if they raise interest rates to fight inflation then they risk a recession which no one politically wants so you get this slow march into inflation with nothing to combat it.
yes, that's the problem. guess hyperinflation is inevitable. still better to buy a house now? what the heell, I just can't win.
Jr. Member
Aug 22, 2014
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Vancouver
Everyone can see there is hyperinflation when restaurant meal prices double within 2 years... we just eat out half the amount of time now.. guess even eating out will be a privilege for the wealthy soon. After taxes, tips and prices doubling, who can afford to eat out anymore?
Sr. Member
Feb 24, 2018
967 posts
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One thing that suggests to me that it's happening no matter what at an accelerated rate is if you look at other countries. I've seen media from countries in South Asia or talking to people who are from or have relatives in Colombia or Turkey or Eastern Europe. These are not some tiny poor 5 million population countries, they're countries which have seen insane amounts of inflation which fall below hyperinflation but are similar to what we're seeing here now except it started in these countries years and years ago and it's getting worse.

We've been fairly safe in the Western world from it but no agency is doing anything to stop or even slow it down so what makes us more immune to what these other countries have gone through? Are our politicians and central banks more benevolent or smarter or less short-sighted? I don't think so, I have zero faith in them.

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