unclej0

2009 Commodity Fund Performance - Part III

If it is not true that inflation is whatever the government says it is, then how are we to define it for investment purposes?

One problem is that inflation is different for different individuals, depending upon how they spend their money. Relative inflation of the dollar can be quantified by comparing it with some basket of other currencies. There are also things like labor cost inflation and commodities inflation. All of these have an element of arbitrariness.

If we could Cheynify (ie, waterboard) some distinguished economists, would a good answer be obtained?

Eight Signs Gold Is Headed for a Correction

The voices of fear and panic are always with us, threatening some imminent catastrophe, frequently either massive inflation and default or else a depression that is fatally long and deep, according to their own preferences. It's a well known and widely practiced method of influencing markets or selling newsletters. Maybe some day one of them will be right but I won't know when.

I was born in America, I have been nurtured and educated in America, I have served in its armed forces, and I am not willing to give up on America unless I am going down for the third time. Meanwhile, a policy of rationality and prudence is my choice.

Fortunately, we now have a competent, rational, and decent man at the helm. I'll put my money on him and invest my money on things of demonstrable value. Bubbles and panics are the problem, not a solution.