tag:blogger.com,1999:blog-26277603.post-37166092173622424242009-06-30T08:37:00.002-05:002009-10-14T11:15:37.262-05:00Hi All,<br /><br />So I was sitting on the metro riding home today and was leaving through somebodys leftover USA Today. The finance section had a piece on inflation. The article basically said that because the Feds are racking up huge bills, the government will have a powerful incentive to create inflation.<br /><br />The thing about it was, that they cited this swiss economist, Marc Faber. Faber is famous for having made the prediction that hyperinflation was a 100% certainty for the US. The thing is, the newspaper was the USA today. I always kinda figured that Faber was only quoted by internet freaks and hard core gold bugs. I was surprised that a reputable paper like the USA Today quoted the guy.<br /><br />So it seems that the mainstream press, not just bloggers are starting to take the inflation issue seriously.<br /><br />So, I don't know what you're planning on doing about this, but I'll tell you this much. When and if inflation gets to around 10 to 12% I'm planning on loading up on long term debt instruments. Preferably something like 30 year t bills or an investment along those lines.<br /><br />The truth is that high levels of inflation are a historically anomaly. For most of the last 70 years interest rates have been way lower than 10%. In fact, a really high interest rate would be a great opportunity, especially if one thinks about it as an opportunity to lock in a high return with low risk. It's a signficant money making opportunity and one that could greatly enhance our wealth. So, what will be on the menu will be things like 5 year CDs and long term treasury obligations.<br /><br />Best,<br /><br />James<div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/26277603-3716609217362242424?l=www.dinksfinance.com' alt='' /></div>Dual Income No Kidshttp://www.blogger.com/profile/04648586816512955888dinksfinanceblog@yahoo.com5