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To: rbg81

This, of course, assumes that deflation is in the cards.

If hyperinflation occurs, then just about everyone is screwed. (Maybe the gold bugs were right...)


12 posted on 01/03/2015 11:44:23 AM PST by __rvx86 (A non-trivial fear: Government by my peers. Double points if you can figure out when I was born.)
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To: __rvx86

If hyperinflation occurs, you would expect the price of commodities like oil to increase, not decrease.

I had done very well with oil from 2009 until last June. It’s been a very rough ride since them. It is STILL a significant part of my portfolio however, because:
1. Like gold, it will never be worth zero.
2. Oil companies pay good dividends. This will decrease somewhat, but it beats the interest I get in a CD.
3. The game the Saudis are playing is to shake out the field of producers. Once this happens, the price will go back up.

I still believe that, mid-long term, the US deficits will have a devastating impact on the Economy. I had thought it would kick in by now, but the Federal Reserve is doing all it can to postpone the day of reckoning. But that day will come.


17 posted on 01/03/2015 11:54:25 AM PST by rbg81
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