Chris takes on these 3 scenarios, and what to do to prepare against each. [youtube]http://www.youtube.com/watch?v=kY_TZOBHbFE[/youtube] Ignoring his delivery style for a moment, my thoughts on his video: * His points on deflation are well made, esp. regarding having cash ON HAND. * His definition of stagflation is terrible. Put simply, stagflation is when you have high inflation, and low growth.
That plan only really makes sense from a defensive point of view. But from my kind of strategy, I don't think you can sit on the fence, because deflation and hyperinflation are mutually exclusive. If you have large ammounts of physical cash in your possession and hyperinflation sets in, you're wiped out. You gotta make a call and stick with it. Like Clausewitz's principles: the concentration of force. Don't disperse your force over a wide front. Concentrate it all on where you have the highest probability of making a breakthrough and focus in on a narrow front. As for stagflation, well I am of the opinion that the Carbon Tax in Australia will cause stagflation. 100% no doubt in my mind. You look at the last time energy prices were artificially manipulated upwards, the the 1970's with the OPEC oil crisis. And the direct result of that was stagflation, and that is exactly what we'll be getting in Australia thanks to this lunatic idea to tax an inert gas.
