A lot to be said for an old truck

[skeet]

I am afraid that our money will be so devalued it'll be useless. The blasted Chinese will own everything

[fabsroman]

Originally Posted by skeet

I am afraid that our money will be so devalued it'll be useless. The blasted Chinese will own everything

If we suffer deflation like they are talking about, then our money in the bank will actually have more buying power in the US and it will make manufacturing in the US a possibility again. Thing is, it will hurt those people that have a lot of debt because they will be paying that debt off while making less money.

In the end, we are invested in real estate to a degree with this townhouse, in the stock/bond market to a degree with our retirement accounts, and now I am trying to hedge against deflation by putting cash in the bank and/or paying off debt. If the economy tanks and we experience deflation, real estate and stockswill be worth less, so they aren't really deflation proof. Cash and bonds are deflation proof.

Long term, I am expecting inflation as we try to service the national debt, but we might see some deflation here in the short term, which will be the time to buy long term investments when they are cheap. Kind of like how I jumped into the stock market with both feet right after the October/November 2008 crash.