gooter

Invest in Gold to Hedge Against Hyperinflation

IBM=1 piece of paper saying you have $116 ownership in the company. Try and have them liquidate to collect it. GLD trades on its current value same as any stock or investment. What fears buggers have of collapse have little to do with modern investment. Their main bet is the collapse of the world economic system, in which case physical gold may be the best bet. I see a lot of opportunity between now and then, and gld serves my needs.

Enlightening the Gold Bugs

if the stimulus dollars stay in the bank and don't circulate, sure, you could have deflation. but eventually, creditors will need to be paid. fed will not allow the banks to hold on to the money, velocity will pick up, and the expanded money supply will feed the inflationary elephant in the room.

Why I See Long-Term Deflation

i have a difficult time seeing how a population raised to spend will suddenly change their behavior. short-term, yes but long-term i cannot envision the US as a nation of savers. the dna in americans doesn't include frugality or long-term thinking. we will regroup, assume the govt. has got things going, and assume our historic method of operation. sad but true. inflation is inevitable with the freshly printed dollars wallpapering our nation and available for nothing.