[quote=sdrealtor]Said the Deflationista while looking at rising prices….[/quote]
LOL. 🙂
Actually, I have ALWAYS acknowledged the threat of a currency crisis as a result of all the debt *and fear of deflation,* which is what we’re experiencing. Deflation IS the primary and most powerful force all around the globe right now, and inflation is the central banks’ answer to that threat. The problem is that the money is getting into the hands of the financial industry/gamblers/speculators, rather than the workers, and this is why all the riots and protests are happening. I don’t see an end to this anytime soon.
I started buying GLD the day after it came out, and had a large position in Swiss bonds, which I had purchased in 2007. Also had a fairly large position in a variety of currencies via the Evermarket FC CDs. Too bad I sold the bonds and currencies last year (for a profit, but not as much as I’d be getting today), as the dollar strengthening during the “crisis” freaked me out a bit. I also had the now-infamous Icelandic Krona when it fell apart, so began to be more fearful of FCs after that.
Personally, I think we’re going to start seeing some high volatility around the corner, as price controls and currency shifts beging to happen around the globe. We are about to enter the second leg of the downturn, IMHO.
