Hyper-Inflation and Cruise Prices
There are currently two camps in Economic Circles…those who believe that we are about to see a 2 – 3 year run of Hyper Inflation and those who believe that Inflation cannot occur without wage inflation. They believe the Fact that we are at 10% unemployment could keep inflation from occurring.
I believe that we will see inflation thanks to the Fed printing money like crazy for the Bailouts, interest rates being close to zero, the government running up the biggest deficit by 3x, and with the value of the dollar starting to drop compared to other currencies. As momentum continues to push Metals, Basic Materials, Oil, etc. higher speculators will take advantage the momentum only causing the price of these commodities to go much higher.
Now why do I write all of this on a cruising blog? Because if you are planning on taking a cruise in 2010…I would book now to take advantage of the low rates. As the value of the dollar drops and the price of commodities drive inflation upward, the price of cruises will increase too. If you put down a risk-free fully refundable deposit now, you will secure the current rates. So if you lock in a cruise for $1000 per person in 2010, that $1000 could be worth a lot less next year. If that is the case the cruise will be selling for a lot more than $1000 per person. In 2010, you will look like a genius for putting down a deposit and locking in a rate back in 2009. Worse case scenario, I am wrong and the rates drop. In most cases, prior to final payment you can cancel and rebook…plus most cruise lines honor rates if they drop, so you really have nothing to lose by locking rates now!