lance sjogren

Jim Rogers: U.S. About to Have a Currency Crisis

I do believe massive inflation is on the horizon, but I don't believe there is any basis to know when it will kick in.

Also, we don't know what the Fed will do when inflation starts heating up.

Will they tighten the screws, even though that would cause interest rates to skyrocket and deal a deathblow to the housing market?

Or will the only politically palatable approach be to sit on the sidelines as inflation rages?

And also I strongly believe the inflation will be very uneven in where it shows up.

I can't see it causing real estate prices going up, although it might help them to stabilize in dollar value. (not adjusted for inflation)

Certainly, gold will go up. Predictions of $7000 per ounce are considered the rants of deranged crackpots. However, there have been so many outlandish things we have already witnessed in this economic downturn- who's to say a 10x rise in the exchange rate between the US dollar and gold might not also occur?

Gold: Not an Effective Hedge Against Inflation

TIPS are not a viable inflation hedge because they hedge against the "cooked" inflation figures put out by the govt.

I believe shadowstats.com has some stuff on this. The more honest way inflation used to be calculated shows we have been running much higher inflation than what the phony inflation gauges that are currently used show.

Today's inflation statistics are not a gauge of prices but rather an instrument used by the govt to convince the public that the cost of living is going up a lot less than it really is.