Inflationary price increases are not coming… they are already here. The Fed wants you to believe that we are still experiencing falling prices, but the Fed also wants to tell you that food (commodities) and energy don’t count. The Fed is lying to you. Let’s have a look at three areas in which you need to start hedging against inflation.
1. Precious metals
As the dollar’s downward slide escalates, not only will these investments run with inflation, they will actually outpace it. Why? The failure of a currency incites panic, and such conditions universally mean that terrified investors will run to safety, causing a dramatic overshoot of intrinsic value.
Another no-brainer hedge against inflation is shorting U.S. Treasuries. The U.S. debt load is astronomical; even a complete about-face by the politicians in Washington (which will never happen) couldn’t save the U.S. government from imminent default.
Nearly a century of fiscal irresponsibility looms before us. It’s time to pay.