Wrisley's Advice

Having never been to Economists' School, we personally rely solely on our observations and instinct in these matters, and see the monetary landscape presently under the influence of deflation...not inflation, hyper or otherwise. Our main barometer is the price of gold. General commodity prices are also waving the deflation banner.

Deflation means that money is in short supply. Inflation means there's too much of it flooding the economy and it drives up prices. Hyper-inflation means...well...Weimar Germany or present-day Zimbabwe. We're not suggesting that monetary inflation won't eventually burst upon the scene. We are saying that deflation has the upper hand at the moment.

IF THE READER IS ABSOLUTELY CERTAIN THAT HIGH INFLATION LIES DIRECTLY AHEAD HE OR SHE SHOULD TAKE ON DEBT AND BUY UP SENSIBLE ASSETS. THE DEBT WILL BE PAID BACK BY CHEAPER DOLLARS. THE LENDER WILL LOSE ON THE DEAL.

BUT...WE'RE STILL ADVISING CAUTION. TO ANYONE WHO'LL LISTEN WE'RE SUGGESTING A BORING, OLD-FASHIONED APPROACH: PAY OFF CURRENT DEBT...ACCUMULATE ASSETS ONE CAN LIQUIDATE AS NECESSARY IN CASE OF TROUBLE.

Our Friend John Wrisley offers some advice for these troubling times.