Will we see inflation in the days ahead… or deflation?
This is one of the biggest questions on investors’ minds these days… and for good reason. Prepare for one and get the other and your nest egg could evaporate.
But the inflation/deflation debate does not come down to a simple equation that spits out an answer. The answer lies entirely in political willpower.
If there is sufficient motivation… inflation will ALWAYS break deflation.
After all, there are a potentially infinite supply of paper dollars… while the goods and services those dollars can buy are finite at any given time.
Here is a better question: Do the government and the monetary authorities have the have the willpower and motivation to destroy the currency through inflation?
Without a doubt, the answer is YES! And they are already doing so…
This week, Bloomberg reports that the U.S. government is prepared to provide more than $7.7 TRILLION to “rescue the financial system”.
This is half of EVERYTHING produced in the U.S. last year… and almost 10 times what the U.S. has spent in Iraq and Afghanistan!
And what about the additional TENS OF TRILLIONS the government owes Baby Boomers for Social Security and health care obligations?
Where will all of this money come from? The answer is simple. It will be created from thin air.
There is no debate. Our elected government and monetary officials have already set a course to obliterate the value of the dollar through inflation. There is no turning back from here.
Are you prepared?

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