[ QUOTE ]
TStone,
I see this post and I see your other post over there, on real estate.
You sense more inflation coming-- HERE, now-- and dont want your wealth's purchasing power to disappear. You seem to sense an opportunity in all this danger and are looking for specific action steps.
All you have to do is remember the lessons of 76-81 to do well in an big-inflation scenario. Study that period to be OK in your decisions regarding positioning.
The main thing to do is borrow cheap today-dollars at low FIXED rates, and make sure your cash (existing savings and debt) are positioned to benefit from monetary inflation. (An increase in the total dollars in circulation.)
This usually means real stuff: real estate, gold, gold stocks etc.
Lots of people will put homes on the market in the spring because of the expected real estate crisis and current attractive selling prices.
For example in my own home town this time last year there were 75 homes on the market; right now there are 175 homes available. Spring will bring even more supply; price must drop as a result to compensate. That may be an opportunity.
If you are so inclined consider buying gold (see symbol GLD).
The Fed says they are fighting inflation and that is PR and total BS. The reality is inflation is running away and these rate increases dont even come close to what is needed to stop it. They know exactly what they are doing. The cost of stopping the acceleration of the inflation trend with rate increases is huge: recession, a huge impact on balance of trade, etc. Just look at 1980-81 for an idea of how fun this will be.
At current real rates of interest (cost of money, minus inflation rate) they are literally paying you to borrow todays dollars and pay them off in inflated cheap future dollars later. Governments will always print more money to get out of a crisis. War is inflationary. Perpetual war means (likely) perpetual inflation.
It is unlikely China's cheap imports will continue to provide sufficient deflationary pressure to counter what has already started in terms of monetary inflation in the USA.
Add to this the statements from new-Fed-Chair Bernanke about "inflation targeting", "printing presses", and "dropping dollars out of helicopters" and you have the ingredients of a once-in-a-generation, perfect (inflationary) storm.
Inflation is a legal form of robbery. Anyone with savings in an account is being literally robbed blind by the inflators. The victims typically have no idea.
Ben Bernanke Background and Links
Lessons from 1976-1981
Investing in an Inflationary Scenario
Largest Producer Price Index Increase in 31 Years (since 1974)
Good source of info on current USA inflation situation.
[/ QUOTE ]
im not in a position to borrow money.
whats the best way to protect my money?
how can i buy Euro's? is this what forex is for? what EFT's I can buy to offset inflation?