Sol Palha

Use Currencies, Commodities to Hedge Inflation

I am not sure what dictationary or what reference book the individuals who claim inflation is defined as increase in prices are using but the defintion is was and will always be an increase in the supply of money.

next issue. One can take on debt when and if one has money flowing in but if you are in a situation when jobs are hard to come by, salaries are not increasing and credit markets are frozen then just how do you plan on paying of your debt even if you are going to use inflated future dollars; note you continue to pay interest on this borrowed money and eventually rates will rise and they will rise at a very fast pace.

Finally one is advised to cut down debt but use this money to deploy into commodity based assets and not put this money under the mattress or in the bank.

In terms of USO and the other ETF's that were mentioned; there are far superior investments to these ETF's and this fact was mentioned in the article but when one gets into specific stocks and or futures contracts the time frame is different and one needs to monitor these investments rather closely as oppossed to ETF's where a more relaxed approach can be taken. As we are dealing with the public the easiest method is to list ETF's, sophisticated traders can purchase stocks that emulate the suggested ETF's.

As for the currency ETF's it would generally be wise to add to one' position till the commodity bull coms to an end. One can use simply trend analysis. Trend analysis should be done on 6 and 9 year charts so as to avoid all the noise that the shorter term charts produce