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 : Technical analysis for shorts & longs -- Ignore unavailable to you. Want to Upgrade?

To: Cogito Ergo Sum who wrote (45159)	11/25/2008 1:56:10 PM
From: Johnny Canuck	Read Replies (4) \| Respond to of 71740

I think inflation if it does happen will come as a result of the de-valuing of their currencies. If countries like the US try to spend there way out of a recession, their debt will balloon and their currency will be de-valued as a result or their interest rate would have to rise significantly to attract buyers to the countries bonds. Their economies can't take the later right now. People forget the US dollar is strong right now because people see it as a safe currency relative to the other currencies. The exchange rates do not reflect a demand for US products. Regan spend the US out of a recession. It triggered a period of ultra high inflation. Of course it was followed by the big hang over of the early 90's. Through it all though good companies kept paying dividends. I can't remember if the real rates of returns outpaced the rate of inflation though. I do agreed on your strategy of buying income streams. At least they are easier to analyse as opposed to the projected P/E ratios of companies in the current environment. Any company raising dividends does not see a near term problem with cashflow.