Tuesday, May 19, 2009

Inflation Hedge

For over a year, we've been putting a small monthly dollar amount in physical gold and silver. Yeah, it's a bit gold buggy, but it's one of the few investments that has held up since January of 2008. Sure it does not pay a dividend, has not appreciated in a year, but find me an investment that has not lost money since Jan 2008. I'm willing to store some of my earned income in the barbarous relic. The Greeks valued it. They didn't value Microsoft stock.

I know the devoted St. barry followers don't understand economics. It's OK most politicians and people don't, but you don't borrow trillions to get out of a problem caused by excessive borrowing. The reason the dollar is worth 33% less internationally now than in 2001 is because of government deficits and super aggressive FED policy earlier in the decade. The great inflation will come, and St. Barry and our other politicians won't be able to stop it.

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