PS, I don’t think the KaPoom theory is completely crazy in general, but you have to remember that the inflation he talks about doesn’t even begin to get underway until 2012 and then takes a few more years just to get back to current levels before accelerating upward. That’s 10 years out… I don’t know about you, but my crystal ball gets pretty hazy that far out. I consider myself a pretty long-term oriented investor but even I have my limits. And I don’t think rates will go as high as he’s predicting although we could see some jump in long-term rates at some point several years out. I have a word for economic predictions made more than a few years out: “guesswork.” In my view, the fact that this guy made millions in venture capital has absolutely zero impact on his credibility as a forecaster. But if you want to invest based on this kind of stuff, that’s certainly your prerogative.
