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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 389.75+0.5%Dec 1 4:00 PM EST

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To: TobagoJack who wrote (76499)7/18/2011 6:03:59 PM
From: vegetarian  Read Replies (1) of 218137
 
Considering that the economy is centrally engineered, a good engineering guess is that the sovereign nations will avoid what they are afraid off and overdrive in the other direction. That is, US is afraid of depression (since they have experienced it before) and will get hyperinflation while attempting to avoid depression and vice-versa for Europe. Hopefully the citizens of each geo are prepared likewise. In a perverse sense a US citizen who is say 10% invested in gold/PM would be better served with a hyper inflation of 10x (1000%) since their net worth would be maintained with 10% PM allocation assuming the assets prices scale linearly with the magnitude, getting only a 50% inflation is worse with only 10% allocation to such insurance because then you end up losing ~35% instead of 50% of net worth, that is, the insurance magnitude is not adequate to provide full protection, the person is better off with a 1000% inflation where their 10% asset allocation will keep them above water.
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