One of the more fascinating examples of Stockman’s wisdom can be found in this example:
A house sold for about $29,000.00 on the average in 1971. 40 years later, it sold for close to $290,000.00, on the average, nationwide.
However, we as a nation, are not ten times more productive than we were in 1971. The house’s value was bid up by currency devaluation (e.g.: inflation). We are living through a vast, specultive bubble of enormous proportions.
There will be a valuation crash on material goods and on the currency such as we have not seen in our lifetimes.
BTW, this won’t be a great time to be Chinese.
So...what do I want to be holding when this 'crash' (devaluation) happens?
And...why won't the Fed just inflate things away as so many have told us they'd do?
What make Stockman's ideas correct?