| |
| |
This is going to be joint effort Between Sol Palha from www.Tacticalinvestor.com
and I John Tyler from the www.infognome.com
This is the first of a four part series. Sorry, you’ll have to read
Part II to read why we call inflation “The Great Financial Pox”. We don’t
want to scare you in Part I.
Treasurers and Fed Chairman alike develop a new tone of reverence in
their voice when they mention the dreaded "I.." word, inflation. Like
a child saying, "I'm not scared of the dark", the "I" word,
we are told is nothing to be scared of -
for the moment any way.
Even these venerable gentlemen know that inflation has many benefits AS
IT STARTS.
What's more, it’s a happy time. Deflation is only grim, but who can't
crack a smile when the true cost of repaying their debt tumbles? Who doesn't
feel happy when the value of their home has gone up 20% without having to lift a
finger? Sales increase, and even the stock market perform well in inflations
early stages. Even the sour old Infognome manages to produce something that has
the shape of a smile, although it is really a grimace.
Over the next few newsletters I will explain to you why it should be a
concern, and why The Infognome views his aging years with a little intrepidation
for the next generation of ankle- biters
Inflation is a disease of the human condition. It is incurable and has a
long incubation period based on monetary excess. Once its appearance is obvious,
it is too late to stop major damage to the lifeblood of the nation: faith in a
monetary system. History will show how this disease strikes in varying forms,
with the most rabid form being hyperinflation. Secondary diseases such as back
strain accompany this from lugging sacks of money around. A truckload of notes
would be needed to exchange for a low value gold coin. A more recent Argentinean
outbreak meant the funds from selling a residence would hardly fill the grocery
trolley two years later.
There's a lot we need to do to fight this disease. I'm talking personal
salvation here, because the nothing can be done for a nation in its grip before
havoc is created!
The International Bank Credit Analyst notes the robust nature of the
global economy. Because "Inflation" is such a dirty word,
they say, " stay with reflationary
trades". Really brave members of the establishment eg. Australia's
Treasurer, Peter Costello, mention the dirty "I" word When hosing down
concern about the recent rate rise, he said inflation was not a danger.
Inflation in the traditional sense is not here, but the evidence is
mounting that the scene is set and will start its inevitable work in the coming
few years. In future letters, we'll revisit this issue, and discuss how we can
protect ourselves and families.
Sol Palha From the Tactical Investor comments
First of all I would like to add that this project was John Tyler’s idea and even though I thought about it many times I kept procrastinating, however a sharp nudge from john and off I went to put my thoughts onto paper.
I fully agree with
John inflation is a disease, it is one of the worst diseases that can’t
afflict man kind, because it is created by greedy selfish filthy rotten
scoundrels who wear a suite and tie and hide behind a friendly smile. These
individuals are none other than the central bankers, who have taken this world
from a safe and decent place and turned it into a filthy rotten stinking pit of
misery, where innocent people are forced to chase worthless pieces of paper that
are produced by wave of wand.
Inflation does have
its benefits but only for those who are inflicting this plague upon mankind, if
you are a working person, or someone who has a small business, then you have no
way of winning this game (unless you use the ultimate weapon, more on this
later). Every year they deflate your earning, by producing more and more paper.
Yes the initial benefits might be great, Property prices doubling or tripling,
the cost of servicing your debt dropping, however your earnings have just
dropped to ( so has the cost of servicing
your debt really dropped or is it just another illusion.) In the end the only
way to have guard against this plague is through taking the financial Insurance
policy and that is buying Gold And Silver bullion.
We
will explore the evils of inflation in more detail in the next report.
Click here to read Par2 of the The
great Financial Pox Part