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I have been thinking about one way the future might look as it pretains to inflation.
Lets assume that a nation has massive debt, their economy has slowed signficantly and they are passing massive fiscal packages and lowering interest rates to near zero in an effort to jump start their economy. Also the new administration in on an FDR like spending approach which it funded by paying higher rates to get the money necessary to finance the projects.
Fast forward 3-5+ yrs and they actually have ended up over stimulating the economy.
Inflation arrives in a significant way.
What happens to the value of the dollar? (My guess Lower)
Where do you put your money? What type of hard assets do you hold? What is the best thing to do with debt? Be leveraged prior at lower rates or have it all retired? Bottom line how do you prepare for this scenario?
What got me thinking about this is I recently read an article about that eventually governments will have to inflate thier currency to get out of their debt situations. This could be ugly. I don't remember much about the late 70 or early 80s and the impact on inflation.
tomcat98
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