Surviving hyperinflation

[Hogmauler]

I believe it’s a question that we all need to ask ourselves. Can our government continue to print money and hyperinflation not occur? If/ when it occurs, how can a family not only survive but thrive? Is that possible?
Is it good to have debt when hyperinflation sets in? If paper money is worthless will the government allow an alternative currency to be used? Will we become a bartering society? I have a lot of questions and unfortunately no answers.
Again, I think it is prudent as the leader of your family to at least have this conversation with yourself if not your better half. I’m hopeful that the TBH brain trust will come out in force on this one. Thanks for any constructive input folks.

[HoustonHunter]

My career is in commercial banking and I am an active investor. I do not believe we will see hyperinflation. Inflation, yes, but not to the extent where it will be detrimental.

Am I tired of the feds printing money? Absolutely.

Am I overly concerned? No.

Am I an expert in monetary policy and economics? No.

[John Paul]

I am in Commercial and Farm and Ranch Real Estate. I have had a more than average, or above average amount of very well off or very healthy groups pouring money into real estate regardless of any type of NOI as long as it self sustains concerned about hyper inflation. Not really sure what the term means for sure, but I have heard the term hyper a lot.

[Hogmauler]

I hope your right JC. Have you been watching the size of these stimulus packages not only for our country but the rest of the world? Not to mention the flood of illegals headed our way. Hope I’m wrong.

[TwoHighways]

They’ll be some sort of reset I imagine. I’m trading dollars for commodities and am leveraged to the hilt with low interest debt to maximize returns in an inflationary environment. When the world no longer accepts dollars for the goods they produce, we’ll have some major problems here. The good news is that it’ll force us to produce our own manufactured goods again. There will be a lot of pain as we restructure from a consumptive economy to a more productive economy.

[Hogmauler]

So what happens to the debt on your home for instance? If it ever gets that bad to where your money is worthless what do you pay your debt with? At what point is the reset?This is just a little disconcerting for Joe average like myself

[Lone_Wolf]

Well Sailor, the only advice I can give you is Mr. Cowboy Hat is wrong.

[Hunting4fun]

Invest in material goods that don't depreciate. What ones? That's the key question.

[Geraldg6]

I’m a CFP and regularly get this question. Is inflation a concern with our mounting deficit? You would certainly think so. However, it is not something that I’m concerned about, chartered financial analyst that I listen to and follow are not concerned about, and the federal isn’t concerned. There is a lot more that goes into inflation than printing money. Inflation isn’t something that happens over night. There are signs that begin to show themselves that inflation is becoming an issue. Those issues also have solutions that can correct or control inflation.

Most of the articles or reports that are concerned about hyperinflation are fear mongering or selling gold. Plain and simple.

Will there be inflation, yes. Hyperinflation no. I too am tired of printing and the stimulus that is going to be used to line politicians pockets.


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[Hogmauler]

Actually that’s my dads WWII pic for my avatar. So why is J C wrong? You can’t hit and run bro! Help a vet out.

[mrc]

My wife is in farm and ranch real estate, and there are a lot of people pouring money into land right now. After her closing tomorrow we will have nothing but a house and utilities payment. There will be inflation and oil is going to be high, with no oilfield jobs to be had. You just have to be prepared for a few bad years, everyone is going to feel this one.

[ken800]

Inflation is something that concerns me greatly. I keep very little cash for that reason. Real estate is probably the best hedge but stocks in blue chip companies and really any commodity is a solid hedge. If you hold cash, your spending power could be reduced dramatically with rapid inflation. If, on the other hand, you own some real estate, its value increases dramatically as well. It will take a lot more dollars to buy that same land a year from now and then a year after that.

So I ask you this... Real estate prices are skyrocketing around the nation... What does that tell the average Joe?

There are lots of articles on hyperinflation hedges but I don't think we go down a 3rd world country level of inflation but with all the printing of money and low rates, inflation WILL happen and IS happening regardless of what the Fed tells you.

[Hogmauler]

Don’t we owe more than our GDP? Can’t be a good thing. And yes we’ve all found out that “gold will out perform stocks and silver will out perform gold”.. just seems like something has got to break. We can’t continue on like this.

[Montec man]

Greatest concern to me is that the money I'm saving now for retirement won't be worth squat in 20 years because of the accelerated rate of inflation I'm almost certain is coming.

[HoustonHunter]

Regarding real estate: this isn’t a new secret. Most of the business owners I deal with own a fair amount of real estate. In fact, most of their assets are in real estate (mostly commercial, some residential). Most of these folks invested decades ago.

Real estate is a good investment, but it is not a recently new investment. There are also other investments to hedge inflation even in the market.