[Yo-Yo]

So the best strategy is to put your assets in cash during the deflationary period, purchase commodities at the bottom of the deflationary trough, then let your commodity value ride the hyperinflationary wave up.

Easy.

[Read my tagline...]

[melsec]

A good read! This could have been avoided if the stimulus had actually been given to the taxpayer and a spending or debt reduction recovery had happened rather than the Pork Stimulus which never really does the job of creating wealth and jobs.

Mel

[Poundstone]

Glad my federal pension has a COLA index feature!

[Malsua]

So we just need to watch for a commodity spike and then you’ll know. You can beat everyone to the store and stock up.

[dockkiller]

When we start walking around with wheel barrels full of money, I’m going to pay off my mortgage!

[Leftism is Mentally Deranged]

Leftist governments love hyper inflation because:

- it reduces the value of savings to essentially zero, thus making all poor and dependent on the government.
This amounts to a confiscation of accumulated wealth.

- it doesn’t bother the liberal elite (Nomenklatura) because their benefits are adjusted for inflation

- it allows them to take more and more of earnings because “higher” earnings fall into a higher tax “bracket”

- it allows them to give us more worthless paper dollars while saying “look, I’m giving you more money!”

- it destablizes civil society, possibly leading the way to the upheaval of the civil order and the stealth installation of a communist paradise

- for a while, it allows them to say “look, prosperity is increasing, look at those numbers going up every day”

[marktwain]

From the story:

“By the end of that terrible day, commodites of all stripes—precious and industrial metals, oil, foodstuffs—will shoot the moon. But it will not be because ordinary citizens have lost faith in the dollar (that will happen in the days and weeks ahead)—it will happen because once Treasuries are not the sure store of value, where are all those money managers supposed to stick all these dollars? In a big old vault? Under the mattress? In euros?”

Why not the stock market? Stocks have real value.

[KeyLargo]

[blam]

Just when I’m beginning to think that maybe I’ve gotten a little carried away and bought too much ‘stuff’, I read an article like this, lol.

[RobRoy]

I just read the whole thing. Fascinating.

But the guy forgets one key thing: This sort of thing can cause rather large wars. I used to argue back in 2007 with guys about the collapse and they said it would just allow them to go to wall street and make a killing afterward.

I told them it might be rather difficult if wall street is a radioactive sea of glass.

[Truth29]

The author dismisses way too casually the possibility of a post apocalyptic disaster outcome. Government and civil society could easily collapse and/or America’s enemies could choose this moment to attack. There could be no operating mechanism to buy real estate cheap or trade in commodities, for instance. The metals most in demand might be steel, copper and lead.

[Skepolitic]

U.S. Treasuries look a lot like Greek debt

U.S. Treasurys are not at all like Greek debt. The U.S. Treasury doesn't have a fairy godmother.

[GOPJ]

The parallels with Japan are remarkably similar—except for one key difference. Japanese sovereign debt is infinitely more stable than America’s, because in Japan, the people are savers—they own the Japanese debt. In America, the people are broke, and the Nervous Nelly banks own the debt. That’s why Japanese sovereign debt is solid, whereas American Treasuries are soap-bubble-fragile.

That’s why I think there’ll be hyperinflation in America—that bubble’s soon to pop.I’m guessing if it doesn’t happen this fall, it’ll happen next fall, without question before the end of 2011.

Interesting.