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Inflation, Deflation and Rabbits

I once went rabbit hunting with three members of the Fed. A rabbit jumped out of hiding. In quick succession one shot a foot ahead of the rabbit, another shot a foot behind the rabbit, the third started cheering, "We got it, we got it."

Averaging inflation of food and energy costs with $ trillions lost in capital assets ($3.3 trillion in 2008) the Fed is able to "manage" inflation.

My best guess on investing in this environment is to borrow as much money as possible, use 2/3rds to buy railroad stocks and agricultural land. Use 1/3rd in silver and gold.

As oil price and supply continue to destabilize, railroads will be the logistal arteries. If there is an economic crash, the real value of railroads will jump higher but the stock value may actually decrease. Regardless, the value of gold and silver will triple as the Fed debases the currency and foriegn holders of dollars dump them. Pay off the loans with the gold/silver.

The agricultural lands is so you have someplace that can grow food. Current policies will likely destabilize even more governments.


Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.