Realcent.org

http://www.caseyresearch.com/articles/p ... nary-times

Pretty Good Read

-The Great

Thanks. Some good points repeated, as well as some new supporting theses.

We are in unusual times and you have to pay attention to the entire big picture as a whole rather than rely on one or two measures that have correlated to something in the past. Just because the economy is slightly mixed now (some items inflationary, some deflationary), with current low velocity of money, doesn't mean that the entire economy can't/won't turn on a dime and suddenly go out of control. I've said, and believe, that we are at a cusp of instability which is being externally managed (both in the media as well as in the control of monies/markets) by TPTB. If/when it starts out of control, their only immediate recourse will be to clamp down on the economy (a bad thing in and of itself) and institute wage and price controls (which have never before worked adequately for any period of time, as they kill the economy); when they eventually have to come off the next reaction of the market will be high inflation again, immediately.

I agree with you totally. The economic egg shells we are walking on are continuously cracking, and it seems as if we are one broken egg shell from a REAL financial crisis (Euro anyone??), I don't think it will lead to the elimination of the USD, but more likely some hard times for hard working Americans. Just ask Germany! as they are trying to not get strangled by the failing Euro put into play by several destitute EU countries.

-The Great

this is pretty obvious stuff.

fed has been trying to recreate asset inflation for 5 years. their failure to do so is cause for concern. you can't position your investments on the assumption of inflation - it may not occur.

It's not obvious to me that they believe they are trying to create inflation. I believe that is what will result eventually, but that is a different matter. What they do seem to be purposely doing is protecting the banksters. Most of the newly printed money has gone to either bailing out the banksters (protecting the aftermath of the bubble by filling in the gaping holes in balance sheets) or to protecting the standard of living of the recently unemployed. Eventually the transformed bubble will also pop and they will try to cover the new one. Eventually they will fail in one of these covers and the market will implode and the USD itself will fail. Fiat currencies always fail.

If you are ABSOLUTELY sure that inflationary times are coming about in the future...one strategy is to borrow money at a FIXED RATE and to buy productive assets with it (businesses, farms, real estate, capital equipment, etc). You then pay back your loan with depreciated money.

People who successfully do this get rich...

Of course, it is easier to say than do...