Do not be scared by this deflationary vortex commentary, rather understand the true form of inflation. Do not confuse cause and effect, rather take advantage of the root foundation.
Inflation is simply an increasing money supply. This is believed by every heterodox economist in the world; that is, all the economists outside of Keynesian economists. Keynesians will tell you that inflation is simply rising prices, as measured by the CPI. However, rising prices are simply an effect of inflation. When money is created, too few goods are being chased by too much money, thus price goes up based on simple supply v. demand.
Right now, inflation is being exhibited in treasuries, mainly domestic. But when the extra created dollars start to flow into the economy elsewhere, true inflation will be felt. Whether they further contort CPI to conceal it is anyone’s guess.
I’m dip buying commodities as fund managers blow out. GLD, SLV, SLW, RGLD are #1, 2, 3, 4 in PM’s. Also look towards Oil stocks, as my next little blog will be about whether oil or gold is a better inflation hedge.
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what about this ?
http://pragcap.com/the-biggest-bubble-of-all-time
unprecedented money creation will lead to unprecedented inflation hedge market movements
What is your timeline for this?
Right now it seems like global economic slowdown (1-2 yrs) will lead to slow demand in commodities which will expose the speculation inflated prices meanwhile.
If your going to swim across the river that’s absolutely fine! However, why the fuck would you swim across the river when you got sharks and alligators in there?That may not be the best analogy I’ve ever come up with, but Im sure you got the point. Your going to be taking some serious short term pain even if your long term outlook is correct. Why wouldn’t you wait for some type of bottoming pattern before jumping in the river infested with scary shit that’s going to eat your dick off.
Your timing will have to be really good to do this. I’m waiting until the PM’s hit the bottom of the intermediate cycle sometime in late November around $GOLD 1300-1400. At that point it will be much easier to retrace 60% to 70% of the peak before we start consolidating again. I’m not saying you can’t time the dips along the way. Just that it’s harder. Why don’t you just wait. It’s only a couple of months and will be so much easier.