bradco Posted November 27, 2006 Report Posted November 27, 2006 Yes, demand also has something to do with it, and the demand for clothing is relatively constant but the supply of currency also plays a role. More currency in the system causes inflation and the poster was talking about the inflation of his house. ceterius paribus, an increase in the money supply will cause inflation. As long as the inflation is at a low rate there is nothing to be worried about. Wages are rising along with inflation as well (as well as causing it). Real wages are higher now than they were ten years ago, and higher standards of living are enjoyed because of it. Relax a bit eh....your tendancy to go out of the way to find conspiracy theories is a little weird eh. Quote
PolyNewbie Posted November 27, 2006 Author Report Posted November 27, 2006 Bradco:In this case it is mostly all demand. LOL and i doubt the poster was talking about inflation.....If he was I wonder where helives since a 200K increase in the value of his house is pretty amazing inflation!! True, but my point was that there was an increase in currency supply that went with his house value increase. My university prof once said that you can accurately predict real estate prices with population trends. The effects of the currency increase may not be felt right away and it shows that the increase in house value may not be real. Quote Support the troops. Bring them home. Let the bankers fight their own wars. www.infowars.com Watch 911 Mysteries at http://video.google.com/videoplay?docid=-8172271955308136871 "By the time the people wake up to see the bars around them, the door will have already slammed shut." Texx Mars
White Doors Posted November 27, 2006 Report Posted November 27, 2006 Where did that 200k come from that my house went up in value by? That happened because currency supply went up. The value of your house has remained the same, the value of your currency went down. Check the prices of silver & gold to see this. In Rome you could buy an outfit (white things they wear), a leather belt and a pair of good sandals for an ounce of gold. Today you can buy a complete suit with shoes for that price. You think in dollars and bankers decide how many dollars are in the economy. You are working for half what you did 10 years ago. The low priced imports and low price of genetically altered mass produced food is preventing you from seeing reality, but it will soon all come crashing down on you. It did? Crap. I guess that extra 200k will be worthless then. Too bad. Quote Those Dern Rednecks done outfoxed the left wing again.~blueblood~
White Doors Posted November 27, 2006 Report Posted November 27, 2006 Bradco:In this case it is mostly all demand. LOL and i doubt the poster was talking about inflation.....If he was I wonder where helives since a 200K increase in the value of his house is pretty amazing inflation!! True, but my point was that there was an increase in currency supply that went with his house value increase. My university prof once said that you can accurately predict real estate prices with population trends. The effects of the currency increase may not be felt right away and it shows that the increase in house value may not be real. it's not real? shit. Well I guess I am poor. Here I was going to sell this house and be mortgage free in the maritimes next year. Guess the banks will tell me that the increase in my home's value is because of the money supply.. I will have to start all over again. thanks Poly. I may have avoided financial disaster because of your advice. Quote Those Dern Rednecks done outfoxed the left wing again.~blueblood~
bradco Posted November 28, 2006 Report Posted November 28, 2006 "The effects of the currency increase may not be felt right away and it shows that the increase in house value may not be real." Inflation was what 2.5% last year??? We are talking about a 200K increase in the value of the home. Unless he owns a VERY nice house the inflation caused increase in the value of his home is negligble. Not to mention most peoples wages are also rising about 2% a year. So the "real" price isnt influenced by the money supply change at all really. "My university prof once said that you can accurately predict real estate prices with population trends." well ya population trends would be a pretty good indicator of demand for housing. That demand is the determiner of house values. So I would imagine they correlate nicely. Quote
PolyNewbie Posted November 28, 2006 Author Report Posted November 28, 2006 The point still remains that the currency supply has doubled while the house increased in value and that takes away from the actual dollar value of the house - given that there are more dollars they are worth less unless people are working harder for the extra dollars. The affects of an increase in currency supply would not be felt right away. Quote Support the troops. Bring them home. Let the bankers fight their own wars. www.infowars.com Watch 911 Mysteries at http://video.google.com/videoplay?docid=-8172271955308136871 "By the time the people wake up to see the bars around them, the door will have already slammed shut." Texx Mars
White Doors Posted November 28, 2006 Report Posted November 28, 2006 "The effects of the currency increase may not be felt right away and it shows that the increase in house value may not be real."Inflation was what 2.5% last year??? We are talking about a 200K increase in the value of the home. Unless he owns a VERY nice house the inflation caused increase in the value of his home is negligble. Not to mention most peoples wages are also rising about 2% a year. So the "real" price isnt influenced by the money supply change at all really. "My university prof once said that you can accurately predict real estate prices with population trends." well ya population trends would be a pretty good indicator of demand for housing. That demand is the determiner of house values. So I would imagine they correlate nicely. Except that by the time the population increases the house prices have already gone up. I imagine that's why the 'professor' is still working and not rich. Quote Those Dern Rednecks done outfoxed the left wing again.~blueblood~
White Doors Posted November 28, 2006 Report Posted November 28, 2006 The point still remains that the currency supply has doubled while the house increased in value and that takes away from the actual dollar value of the house - given that there are more dollars they are worth less unless people are working harder for the extra dollars.The affects of an increase in currency supply would not be felt right away. Wrong. I haven't sold the house yet. I have not realized the increase in the value. It is only on paper right now. I will soon, but haven't yet. Currency supply never doubles that quickly. That is assinine. If it did we'd all be running to the banks and withdrawing our money. Quote Those Dern Rednecks done outfoxed the left wing again.~blueblood~
PolyNewbie Posted November 28, 2006 Author Report Posted November 28, 2006 Currency supply has doubled since Bush got into power. Quote Support the troops. Bring them home. Let the bankers fight their own wars. www.infowars.com Watch 911 Mysteries at http://video.google.com/videoplay?docid=-8172271955308136871 "By the time the people wake up to see the bars around them, the door will have already slammed shut." Texx Mars
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