The actual inflation rate right now is about 10-12% per year (in spite of what the CPI says). Next year at this time, the rate of inflation will be about 20%. So, if the cost of living is going up 20% per year, if you've got an extra $1000, and you have a house and extra storage space, why not buy what you need now. Don't leave your money sitting in an account. Go to Costco or a place where you can buy in bulk and stock up on things you will need. Store stuff, not dollars.
15 comments:
Linnette, Tavia's blog is the financial hub. JK!!!
Come to think of it, I thought that was a big Costco semi I saw in your drive-way the other day as I drove past.
I started this. Now I have to move it all. LOL.
I bought a bunch of extra toothbrushes, toothpaste, razors. You know, small stuff that does not go bad.
Alyssa should get Violet and Ledge any shoes etc she sees that will fit them later.
John you are funny.
Alyssa doesn't have to worry about buying shoes for Violet and Ledge. They will have enough in their piggy banks to support the rest of you when Peter Schiff and Ron Paul are long forgotten.
Uncle Henry
The point is, the price will probably go up. It does not matter how many dollars you have in your hand, it is what you can buy with those dollars that matters.
If you know the price of something is likely to increase in a year from now, why not buy it now?
It is just a form of investing.
"I bought a bunch of extra toothbrushes, toothpaste, razors."
Having never been through a great depression, we are probably sleep walking through this, having no real idea what we are up against, but I think you are thinking smart, Tavia.
Hey Linnette,
I went out and follwed the earthwhile advice of Trainor Place and bought one thousand dollars worth of picture frames at Aaron Brothers 1 cent sale. Now you can take tons of picture of Violet and Ledge and I'll have plenty of space for them. I bought 99 items at the 99 cent store just to see if they go up 10 per cent in price this time next year. I have a hundred first class stamps that are good and can never exceeed their original price. My monthly social security check is supposed to be increased by the cost of living index every January, and we can raise the rent on everrybody to stay even with inflation, so why the hell should I give a dam what Peter Schitt thinks?
Henry Burke a la Alyssa Burke
Henry
I've lost you where you through Alyssa's name into your comment. Confused at the meaning of "a la Alyssa Burke" explain please.
Leo
Leo ~ same last name as Alyssa
I tend to believe Peter Schiff because he has a history of being right. He predicted the dot.com bust. In his book, Crash Proof, written in 2006, he predicted the bust in the housing market. In the following video which aired in 2006 on Fox News, he talks about it and the other analysts think he is crazy (but, as we all now know, he wasn't):
http://www.youtube.com/watch?v=yoZV5jt9puc
Also, in his 2006 book, Crash Proof, he predicted that Fannie Mae and Freddie Mac would go bankrupt. Was he right?
"a la", doesn't mean same as.
Just try to take the Cantarini out of Violet.
W-w-w-what???
Drew- you need to stop drinking.
Leo
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