2011Travis Grier [INFLATION HEGDE: YOU HAD BETTER GET ONE, CAUSE THE USD IS TAKING IT IN THE NECK]
Inflation Hedge: you had better get one, because the USD istaking it in the neck!Inflation hedge is defined in my quick an...
two can mean taking a bullet from a farmer’s gun, so it’s is sensible to protect oneselfwith a food source – either preser...
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Inflation Hedge: you had better get one, because the USD is taking it in the neck!

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Inflation hedge is defined in my quick and easy online search (accurate or not) as an investment ‘designed’ to protect against inflation risk. This is weird, because the best inflation hedges are natural resources. Man doesn’t design them, he can only extract or produce them to the best of his ability. The reason they are inflation hedges is that governments can’t just, poof, create more of them.
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Inflation Hedge: you had better get one, because the USD is taking it in the neck!

  1. 1. 2011Travis Grier [INFLATION HEGDE: YOU HAD BETTER GET ONE, CAUSE THE USD IS TAKING IT IN THE NECK]
  2. 2. Inflation Hedge: you had better get one, because the USD istaking it in the neck!Inflation hedge is defined in my quick and easy online search (accurate or not) as aninvestment ‘designed’ to protect against inflation risk. This is weird, because the bestinflation hedges are natural resources. Man doesn’t design them, he can only extract orproduce them to the best of his ability. The reason they are inflation hedges is thatgovernments can’t just, poof, create more of them.Governments produce nothing. They only take and ‘redistribute’ wealth which eitherquickly or slowly destroys the original wealth – every time, without fail. Government hasa record unblemished with success, for destroying wealth! An inflation hedge isindirectly, but most importantly, protection against political risk.Gold, silver, cattle, cotton, iron, timber, farmland, etc.An inflation hedge, or more than one, will protect your wealth as the lunatics ingovernment and central banking continue to destroy global savings.What isn’t parabolic among commodities – even garlic has doubled in the last year? Areyou aware that commodities are the real things that we need to live: food, energy,materials for production? Their prices are all through the roof. They’re heading to themoon!QE2, the infamous policy of flooding the economy with dollars, is largely responsible forthis rise. If you have a finite or slow growing amount of goods and all of a sudden youcreate, with a few key strokes, twice as much money, the price of those goods willdouble. This is a very basic example but it’s happening now, albeit at a slower, but noless dangerous, pace. Inflation hedges are hot!This doesn’t mean that commodities or inflation hedges are immune to price fluctuations.In fact, wild times like these almost guarantee volatility and we have not had muchvolatility lately – we’re due.If you don’t have a price portfolio in inflation hedges yet, you may want to look for a bigcorrection to begin creating one. Gold prices are incredibly high – in dollar terms – butgold is perhaps the most sensible of all inflation hedges – gold is money. Silver is alsomoney, but it has industrial uses that are ever growing and this makes it’s price actionmore susceptible to volatility – this is great, if you are looking to buy some, wait for apull back.Food is number one, if we wish to steer this article down a gloomier path. Food that youhave stored at home. This is really the ultimate inflation hedge. If food prices get wildand unaffordable – it’s starve or steal! Door number one is unpleasant and door number
  3. 3. two can mean taking a bullet from a farmer’s gun, so it’s is sensible to protect oneselfwith a food source – either preserved foods stored away, or producing farm land.As the dollar and other paper currencies erode and die, trade will change dramatically.Locally, you may find barter systems thrive and regional currencies spring up. Gold andsilver will also be used as a medium of exchange. Do you own any?Inflation Hedge: Something you should have bought years ago, but must buy now.

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