[E. Pluribus Unum]

I remember during the Carter years, getting 21% for a 90 day C.D., which was the result of the Fed raising interest rates like they should be doing now but aren't.

This time, it will be more like 2001%.

They are multiplying the money supply by a factor of 15.

Obama has built 7.5% inflation right into his budget projections.

And we know how accurate his numbers are.

[cynwoody]

They are multiplying the money supply by a factor of 15.

Have you ever seen the equation MV = PQ, where M is the money supply, V is the velocity of money, P is the price level, and Q is the output of goods and services? You can solve for P: P = MV/Q. Right now, because of the credit crisis, V is abnormally low, so P has remained under control. But what will happen when the credit system is fixed, and V returns to normal levels? Helicopter Ben will need to morph into Vacuum Cleaner Ben real fast!

So, it's likely we are in for a bout of inflation in the not too distant future. The question is, where to invest to keep up with inflation?