I haven’t heard the economic situation posed this way before, and I’m no expert so I’m wondering how this sounds.

  • The trigger for the current economic economic crises is located as a credit crises and that problem remains.
  • One cure for the problem that has been applied has been a a lot of borrowing (which may further strain credit) and a large increase in the money supply.
  • A likely occurrence in the future is a sharp inflationary period.

Take those statements as given. I think those matters are not controversial. The question then is what should, an individual do?

In inflationary times, one logical response is to attempt to incur debt (ahead of the game if possible). How will that impact the (weak) credit market however? Like this?

And if one were to incur debt ahead of inflation … in what should one put the money, land, precious metals, or the stock market?

I think an argument might be made that stocks, inasmuch as the real value of companies do not change with the inflation may remain valuable.

Filed under: Economics & TaxesMark O.

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