I read an interesting article today from a commodities trader:
The following comments come from a Merrill Lynch publication today.
“To repeat our Mantra:
1) Whatever MUST happen, WILL happen.
2) In a debt crisis, inflation is the ONLY solution.
3) The FED + US Treasury can create inflation.
4) As such, there WILL be Inflation.In this light, we will remind you that whenever you hear someone whisper to you that “It is different this time,” we urge you to grab your wallet and run. It is never truly different, only the flavor and the timing have been altered. Concurrently, we will note that “Pigs can fly, when shot out of a large enough cannon”.
As such, the ability of the FED+US Government to simultaneously print money and lower interest rates can only end in tears. If this were NOT the case, then Zimbabwe would be a paradise and the Weimar Republic would still exist.”
Commodities like gold and silver have been historic stores of wealth. Rich people understand this and use them protect themselves against inflation. You may not get rich buying gold and silver, but you will definitely retain your buying power. Investments in real estate should also do well - eventually, although its likely to do poorly in the short term.