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Old 12-06-2008   #30 (permalink)
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Re: Need an economist on money creation?

Quote:
Originally Posted by Overdog View Post
If that's what you believe then you should invest in commodities. Hyperinflation is a devaluation of the currency, and when this plays out commodity prices will shoot up. I don't think we'll see rationing unless the government fails to abort deflation, but in theory they should be able to print enough money to bring back inflation. So in my opinion some of the best investments are in mines. Gold, Silver, Copper, Aluminum, Coal, Natural Gas etc. 2 billion people in China and India want electricity and refrigerators. And they will get it.
Yes, gold stocks are good. I believe I have about 60,000 shares of them (very cheap ones!) I am wise enough not to buy commodities (futures)!

Of course, the reason the government would impose rationing might be because it could not abort inflation. And I do agree with you that the government is now printing enough money to bring us inflation when the recovery begins.


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