Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: pogohere who wrote (92367)	3/17/2008 7:08:59 PM
From: GST	Read Replies (1) \| Respond to of 110194

Don't confuse your balance sheet and your income statement -- inflation takes place when you face higher costs on your income statement. If you want to hedge against those higher costs on your income statement then you can look for appreciating asset classes and put them on your balance sheet -- housing is merely a classic balance sheet hedge against inflation, gold is another. During periods of inflation you can hope that your income keeps pace, but if it does not you can look to your asset appreciation -- and this is exactly what has happened in the USA for decades. But those days are over. Right now, the best way to hedge against inflation is with global commodities -- and the best way to get your assets wiped out is to be overweight in US housing -- or the dollar itself for that matter. We are now in a world where our US-dollar assets are falling apart, our US-dollar incomes are stagnating and our US-dollar prices are soaring -- to call that deflation is an insult to the English language and an insult to the intelligence of everybody in America. Don't bore me with drivel about how we have inflation and deflation at the same time. We don't. What we have is raging inflation, and a few dim bulbs who want to confuse the issue by calling it "deflation".