Air Bernanke
Monday, November 23rd, 2009Tracer Graves writes:
You obviously feel we are heading for economic disaster. What kind of window of time to you think things have before everything just collapses? Contrarily, what kind of economic indicators would it take for you to reconsider your fears? at what point in time?
I don’t know that things will “collapse”. I think telling you where my savings is might be instructive in terms of my outlook.
Most of my small retirement investment is still in S+P index funds. I have some positions in foreign gold and metals mining companies that I hope will hedge against the worst. They have turned out to be very profitable investments thus far. I still view a total collapse as unlikely, but possible.
I believe that the massive cash injections were a mistake. I believe that we will pay for them through inflation and malinvestment. The worst case scenario is a runaway feedback loop of prince and wage inflation combined with massive government spending and currency rebasing that is a hallmark of foreign hyperinflation scenarios.