No. of Recommendations: 3
But I do agree with the point, even with ifs ands and buts, that the factors that have kept inflation at bay, in the face of deficit spending and printing money (my explanation) can't continue.

It's like trying to work out a 100 term polynomial in your head. I can't keep all the issues in focus long enough to work it all out. Edmunds says that over the course of our lives, the USD will fall in value, and I believe it. The issue is how fast, of course. If they could find a cost effective way to punish the subprime miscreants. If we get into a trade war with China; though I see that the price of pork is inflating as more Chinese can afford it. If we go to war with Iran; though it looks like the EU will be in front of this particular line. If Chavez figures some way to be more than a buzzing mosquito. If the Olduvai Theory is correct. If. If. If.

I dunno. The USD will almost certainly accelerate downward, but how much will that hurt core inflation? We don't really need much of the junk we get from China. Oil is an issue, of course. So is natural gas for our electric plants; which can also run on coal. I think we can feed ourselves if we give up on this corn-into-ethanol nonsense.

Sometimes I wonder if we are at the edge of a Perfect Storm. But, I agree with your premise; our Golden Age lifestyle can't go on indefinitely. Everyone, including the poor, is simply too rich in America.

Hedge
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