If you read the front page of any newspaper
yesterday you know that inflation in the US is rising….that
is if you have not been reading our messages. If you have,
then you already know. Better still. if you have tried
to buy anything lately, you have not needed me or the newspapers
to tell you that prices are up and not standing still.
In one of next week’s messages we’ll
look at my portfolio and how I am fighting inflation. However
a reader recently asked this question.
“Gary, Good points. One more thing
is sneaking up from the trillions of wasted on things like
the drug war and Iraq war. Inflation is once again rearing
its very ugly head. I'm in the construction business. We
are seeing almost weekly increases in commodities that
are freaking out the developers and general contractors.
I heard a report last night on late night radio by one
economic prognosticator who has an\ accurate past record.
He reported that he has personally SEEN millions of red-colored
US bills in storage in Amsterdam already being set aside
like Japan and South Africa did in the 80's to protect
their currency to create a two-tier currency. Meanwhile
Fed chairman Bernake is making stupid comments like he
would "inflate to whatever extent I have to and throw
it from helicopters" to keep the US economy afloat.
That will only sink it faster. In both cases in Japan and
South Africa the domestic currency was inflated wildly
while the international "dollar" was supported.
Anyway this guy said the Fed is now printing SO much money
to keep the economy floating that he is predicting a financial
inflationary collapse by around November 2007. I think
he's spot on. What would be the best financial steps to
take to protect oneself from such a scenario if one is
committed to living here? Buy more gold? Maybe moving is
the only solution. Zimbabwe is undergoing this right now,
1500% annual inflation and the country is about to collapse.
I have a friend that lives there. Best, Bob “
My answer to Bob is that gold, silver,
commodities, real estate, shares are the best answers to
inflation. These investments make a few people rich when
the majority are finally called to task for their excesses.
Fixed incomes and worker salaries always get screwed the
most in inflation.
Learn more about fighting inflation
by investing in emerging currencies, gold, silver, Ecuador,
import-export, overseas markets and more. Join Merri,
Thomas Fischer from Copenhagen and Steve Marchant from
Ecuador and me at our September 15-16-17, 2006 International
Business and Investing Made EZ course in North Carolina.
Review where to invest and dobusiness now and learn
which markets and currencies may be strong in the year
ahead. Learn more about Ecuador import and export from
Steve. Our May course was overbooked and the September
up date is coming along. Our free accommodations are
reserved on a first come first served basis so do not
delay! Go to http://www.garyascott.com/catalog/ibeznc