Inflationary price increases are not coming. They’re 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.

This is a dangerous game, and if you bury your head in the sand — blindly accepting what your government is spoon-feeding you — you face a very real risk of losing everything you own when the dollar inevitably collapses. So what are the best ways to prepare?

1. Precious metals. 2. Energy. 3. Commodities. 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. If you click the image above, you’ll see a video clip showing the relative technical positions of gold and silver right now. It might give you some idea which will provide the best short-term strategy for the coming collapse. Either way, though, your best bet is against the dollar. Nearly a century of fiscal irresponsibility looms before us. It’s time to pay. Disclosures: Paco is long gold and oil, and short Treasuries — all through leveraged ETFs.



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Disclosures: Paco is long TBT, UCO, and gold. He also holds U.S. dollars by necessity, pending the advent of private gold-backed currencies.

You can buy his novel Discipline wherever books are sold.




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