Good comments. I agree that in the mid to longer term 2-7 years stagflation is probably most likely scenario. During that bad 70’s show, inflation was in low double digits and unemployment high. Gold was also at a all time high, nearly $2000 in today’s dollars. So anyhow, I’m holding to my plan, with exception of narrowing downside risk of gold related stocks.
Since original post, we’ve seen widely reported news of potential “currency war” emerging as countries try to get upper hand on exports. Everyone seems to be incented to devalue currency. Heat is increasing on china to appreciate Yuan, they will probably only let it slowly apppreciate.
Bernanke is strongly hinting that there will be large stimulus via asset purchases by the fed, to counter deflation and jumpstart economy.