So what is going to happen? A massive deflation leading to depression or hyperinflation? Or are we going to have one, then the other. Should folks take retirement money out of investments and stuff the mattress with it or what?
It's my opinion that we're already in a depression that is being disguised by the Federal government creating massive amounts of new debt to counteract all of the debt being destroyed.
Destruction of debt sounds like a good thing, until you realize that it is also equal to a destruction of the overall money supply.
There won't by a hyperinflationary period after the deflation, but we will definitely see a rise in inflation that could rival the Jimmy Carter years. I expect that a major international war will most likely occur also in order to help drive the inflation.
My opinion is that cash on hand is the best place to be. Please don't make financial decisions based on my opinion. Pray about it and get lots of good, sound advice.
“Should folks take retirement money out of investments and stuff the mattress with it or what?”
This guy thinks we’ll see Dow 8,000 by December:
http://www.triwealth.com/investor-radio.php
I believe him. I’m perfectly willing to stay out of the stock market until things settle down. Bonds or money market fund seem like a reasonable alternative to me (although I also recently put some IRA funds into gold index funds (unfortunately, this option is not available for my 401(k)).