Am I Having a Saturday Morning Stupid Moment?

Invested money circulates, as well (several times, in fact). Banks don't have piles of cash in a concrete and steel mattress.

Exactly. That is the only money that isn't circulating.

The Fox Business News this morning was recommended a stock, something you should be familiar with, _Bob_Evans_ ;-)

We don't have them around here, but I stop there for lunch anytime I'm driving Columbus to Huntington.

Yep. Refi right now and really make out like a bandit... on the dime of the "working class', whatever the hell that is ;-)

...Jim Thompson

It definitely encourages poeple to even spend money they don't have; wait a miunte, that's how the trouble came about. .

One of mine isn't, heavily invested in stocks :-) But I am sticking with it, no time to panic. The other stuff, I didn't lose any. But a little shocker was the investment adviser of one of our friends. That guy was always touting stocks and stuff. This time he recommended gold ...

Platinum *was* a good choice. Likely high right now... , yes, it is high. Like to have gotten into it about eight years ago.

That's the plan in a nutshell: hair 'o the dog.

It might work better this time, if they're careful about who gets the money.

James

Assuming future inflation. If there is deflation in our future you will be paying back that debt with dollars worth more than today's.

If someone opines that deflation is unlikely, I would tend to agree. If someone opines that deflation is impossible. they are an idiot. Nobody has a 100% accurate crystal ball.

Guaranteed? Even if there is massive deflation in your future?

Requires a crystal ball most of the times but can work (I've done it years ago). But I also met a guy who lost his shirt.

Timing is everything.

In 1929, one unit of the Dow bought 18 ounces of gold. In 1932, one unit of the Dow bought 2 ounces of gold. In 1966, one unit of the Dow bought 28 ounces of gold. In 1980, one unit of the Dow bought 1 ounce of gold. In 1999, one unit of the Dow bought 44 ounces of gold. In 2007, one unit of the Dow bought 20 ounces of gold.

Anyone see a pattern here? Me neither. :(

A guy I met on a hike at Bryce Canyon once told me that at any given time an ounce would buy you a nice suit. I guess he had a point. Today it'll even buy you a very nice designer suit. Not that I'd need one.

Don't have them here either. I've stopped in them for breakfast but I'm not overly thrilled with them. Personal breakfast preference isn't justification for a stock though.

I've only been in the house for six months. ;-)

Not much chance of that. Obama is on track to replace Jimmy Carter as the worst President ever and put the world economy in the toilet.

When the supply of money doubles and manufacturers close their doors, it's hard to have deflation.

That's *NOT* going to happen. Obama will make sure of it.

Please tell me that you just opined that deflation is unlikely, not that deflation is impossible... :)

Are you sure that you don't wish to change that "inevitable" to "nearly inevitable." "very, very, likely," "all but inescapable," etc.? You really don't want to be in the position of claiming that deflation cannot possibly happen.

Sigh. I will give you one more chance to reconsider...

Some investments are matress-equivalent, e.g. holding commodities or bullion for the long term. Actually, real-estate isn't necessarily much better, unless you're planning to develop it.

But most of those are losing propositions in the long term, used mainly to hedge against systemic collapse of paper assets.