Saturday, October 08, 2005

Money, Debt, Hyper-Inflation & Deflation
Today, money is created through borrowing - pure and simple. When you receive that new creditline/mortgage/loan, money is created out of thin air. This is how money is created...
Paper money eventually resorts to hyperinflation without fail.
In hyperinflation, most public aren't affected seriously since most of them are broke. Your job as a saver is to identify things to keep that will preserve your savings. Things to stay away are paper currency and leveraged assets. Things to get into are unleveraged tangibles of necessity - soybean, copper, gold, oil, land. Those are basic commodities that survive through the ravage of hyperinflation.

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