(2) It remains beyond me why anybody would want to invest in TIPs – ever. They are created by an entity that also creates the inflation that the TIPs are supposed to protect you from. On top of that, Said entity continually and deliberately understates the level of inflation. Forget about your investment beating inflation, how can one just break even with the crummy things? From my view, they’re a complete joke.

(3) With respect to the spinning heads of foreign investors, I assume you’re referring strictly to the private sectors because their respective central banks are all part of the G7/Tri-lateral Commission cabal that fomented the world-wide real estate mess. There are no spinning heads in that rotten little clique.

5. I think the food problem is huge. I know from my circles, most people bitched and complained about higher energy costs over the past couple of years. However, the sense of indignation about inflation has exploded in recent months with the dramatic increase in food prices. The initial moves to protectionism by some countries highlights the real risk I see – the political reality of food shortages is protectionism plain and simple. Is it wise to believe that politicians will stick with a politically abstract concept such as “free trade” when there are food shortages in their countries? Once the protectionism fuse is lit, it can get out of hand.

Jim Rogers has spoken (as usual) eloquently about the likely long term demise of the Euro. I personally believe that the risk of some countries leaving is significant over the next few years – like Italy and Spain. I think it will be a global trend in the break down of the fiat monetary system. If we are in a Kondratieff up cycle in commodity prices, this would likely result in a return to hard money in some form as the fiat system breaks down.

Hope things are going well.

Interesting comment about the Euro and various European real estate markets. Obviously we are a long ways away from countries leaving the Euro, and I would imagine that there would be tremendous political pressure exercised to keep the Euro zone together, e.g. by France on Spain.

As a thought experiment though, what are the implications if nations like Spain and Italy leave? I can imagine a flight to the USD, but that might also be very short-lived, as the remaining EUR nations would presumably have a higher level of commitment to fighting inflation, in the eyes of the market.

Interested in your opinion, or those of other readers.

Steve

And since in the next two sentences, you suggest that resource scarcity is the reason you think inflation will not mean-revert, I would suggest that buying a basket of commodities instead would probably work better.

I do actually do own some munis right now, and I think you can make a case for them in a taxable account, at least in the short term.