http://www.rickackerman.com/2011/04/at-last-a-hyperinflation-argument-that-persuades/#more-34127 and a good point;
It is quite a remarkable turnaround. I was a subscriber to Rick Ackerman and participated often in his forum in 2008 and 2009, but quit during 2010 as I found the cheer-leading and non-acceptance of other points of view a bit stifling. I still read his daily articles and have great respect for his market acumen and insights. I plough through the FOFOA posts (and think that I can basically follow) and also agree with what he is saying and proposing. The last article was exceptionally well written and clarifies a lot of his concepts. To convince a dyed-in-the-wool deflationist such as RA is truly amazing.
JulieW What does it all mean.? Will I still be able to buy a loaf of bread for 66 fifty cent round? Regards Errol43
LOL. Yes but he suggests that you need to consider, not how you will feed yourself, pay the rent, mortage etc with your 50c, but how you will carry your 50c for the 6 months required to have a new currency and then sell it in the new currency where your 50c will buy the sack of flour, the oven, the entire output and the time of the baker. (he also talks purely about gold, so perhaps your 50c will be what you need to buy bread - but if the 50c can be traded for $500 do you really want to buy a loaf of bread for $500? p.s I found it a totally fascinating read and his conclusion that the USA will end up without a world currency and get by with the equivalent of the peso sounds likely. The elites have no concern for national boundaries and will happily leave the USA to go from being Rome to being Italy.
The amazing turnaround has surely got more to do with Gozalo Lira absolutely schredding his logic in a 2 round stouch. Lira kept it funny...Ackerman degenerated to feet stamping. http://gonzalolira.blogspot.com/
Here's the Hyperinflation Speacial Report from John Williams of ShadowStats: http://www.shadowstats.com/article/hyperinflation-special-report-2011.pdf Read it, then get 6 months of food, maintain it, and get some silver coin to barter with. What? You're already doing that? No problem, you're ahead of the curve.
I thought this was a good point in the comments It's going to be a battle between the inflationists and the deflationists, that's for sure. And Gold and Silver will benefit. I'm sticking with ultimate debt deflation punctuated by periods of high inflation at this point.
TRAC financials report on hyperinflation is what convinced me. Fofoa makes an elegant argument as well. I refuse to bet the farm either way still though.
PMs are a hedge both ways (if you can hold on them in a deflationary spiral), though gold is, of course, a far more certain route.
Yes, but that is not the point. Your plan should be to make it through the "times of trouble" without using your gold or silver. If you have to use the silver for barter then do so. But the reason most of us buy gold and silver is to maintain or increase or wealth. Buy food now while it is much cheaper than it will be in a few months or next year. Use silver or gold as a last resort.
