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June 20th, 2012 by fin24-editor

Posted in | 6 comments

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6 comments on this post.

  1. Dineo:

    July 9th, 2012 at 9:11 pm

    I am paying off a car installment of R2300. My first installment was on the 1st July 2012 VAF under Standard Bank. I have recently occupied enough money that can pay off my car loan. My concern is that I’m currently renting an apartment for R3200, without electricity. The bank pre approved me a bond loan of R320000. I feel like its too little, should I use the money as deposit for a bond or pay off the car (bearing in mind its a liability). I’m 24yrs/single/no dependence… Am I in a rush? Please advise

  2. fin24-editor:

    July 10th, 2012 at 9:17 am

    Hi Dineo,

    Thank you for your query. We will forward it to our Money Clinic experts and you can expect to see a response on the Fin24 website. Kind regards,

    Fin24 editorial.

  3. Suzuki:

    September 5th, 2012 at 2:27 am

    Thank you Malak. And I would like to take that opportunity to ask you if you wish to ask or read about any issue that is not abailavle on our site, just ask and I shall reply as soon as possible and I shall also publish as a post.

  4. Mei:

    September 7th, 2012 at 4:45 am

    that increasing the money sulppy will increase velocity. The danger of hyperinflation lies in a dramatic increase in the velocity of money due to a loss of confidence, not in changes in the money sulppy. See “Thirdly, We are in a deflationary spiral; the Fed is running printing presses non-stop, yet prices keep falling, and money keeps being destroyed with each write-down or charge-off. The reason for this is that banks just aren’t lending, and consumers/businesses are unable or unwilling to take on any additional debt. After Lehman was allowed to fail, the money markets seized up, and velocity has declined epically.” Yes, we are in a deflationary spiral. But let me ask you this: do you know what a “deflationary spiral” does to a nation’s economy, especially for a country like the US which is totally addicted to spending and debt? The credit crisis will crush our GDP, while our national debt grows by trillions. Do you really think the rest of the world is going to keep financing our trade deficits while our debt-to-GDP ratio gets increasingly absurd?Again, I address this in “Fourthly, hyperinflation is not the guaranteed outcome of a loss of investor confidence in the solvency of the government. Rather, the most likely outcome is sky-high interest rates for a time, as we had in 1982.”There is no comparison between 1980s and today. Back then, we hadn’t yet outsourced our manufacturing sector and we were not totally dependent on foreign oil (relative to today). The US also owed little money to foreign creditors. The annual inflation rate remained under 5 percent throughout most of the 1980s. There was never the risk of the dollar losing all value (hyperinflation).To produce true hyperinflation, a deflationary collapse is necessary. See Towards the end of the week, I will write a blog entry covering why the US faces hyperinflation and not high inflation like in the 1980s.”Finally, it seems that you forget that the United States is not the only country affected by this mess.”I have not forgotten. I will address the issue in greater detail later this week. In the meantime, here are two questions for you:What types of goods get hurt the worst in a “deflationary spiral” (like the great depression)?What does the US make?

  5. Akshay:

    September 7th, 2012 at 5:12 am

    It’s always a pleasure to hear from smeoone with expertise.

  6. Property project:

    December 14th, 2012 at 2:22 pm

    Many thanks. Excellent stuff!

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