Some speculate that the debt ceiling agreement is just one step towards the decline of the U.S. Dollar leading to the price levels within the economy to increase rapidly while currency loses its value.
Is Washington really trying to make a difference?An unchecked increase in the money supply experienced by the delayed spending cuts which will take place in 2020 is a recipe for disaster.
Instead it looks as if they are just trying to push the deficit problems on to the next person who is elected into office. The reason for this is that the price inflation is out of control and unregulated leaving the purchasing power of the dollar to sink.
Only time will tell and the true answer will come if any of the promises made are followed through. Things to consider is that interest rates will not continue to stay at a low rate, food prices will not stay affordable for most Americans, it just could be the default by inflation that is coming in the next decade.
As you are probably aware the main cause of hyperinflation is from the rapid increase in the amount of bank credit, or currency that is unable to keep up with the growth of goods and services.
Paper Money or Gold and Silver
It is this imbalance between the supply and demand for the paper money leading to a rise in prices causing inflation and people lose confidence in the economy.
Since gold can be used as a monetary exchange it is known as hard currency along with silver and other commodities. Many believe that putting money into bullion coins or gold bars will hedge against inflation or an economic depression.
Just printing more money is not the answer and increasing bank credit or printing currency will only make matters worst as has been seen when Bernanke's press conference disclosed the buying of treasury bonds to stimulate economic spending.
Is Inflation protection possible?
These attempts to stimulate the economy has proven to devalue or just delay a inevitable market crash. Investors turn to inflation protected securities. The real rate over return of inflation with no credit risks in asset classes with fixed income securities and equities being a popular choice.
Knowing what your inflation will be during the life of your bond is how you get a real rate of return with an IPS. The entire accrued principle is paid out at maturity giving you interest payments in two parts.
Source: Read more about Treasury Inflation Protected Securities and Bond articles at Investopedia.
Is Washington really trying to make a difference?An unchecked increase in the money supply experienced by the delayed spending cuts which will take place in 2020 is a recipe for disaster.
Instead it looks as if they are just trying to push the deficit problems on to the next person who is elected into office. The reason for this is that the price inflation is out of control and unregulated leaving the purchasing power of the dollar to sink.
Only time will tell and the true answer will come if any of the promises made are followed through. Things to consider is that interest rates will not continue to stay at a low rate, food prices will not stay affordable for most Americans, it just could be the default by inflation that is coming in the next decade.
As you are probably aware the main cause of hyperinflation is from the rapid increase in the amount of bank credit, or currency that is unable to keep up with the growth of goods and services.
Paper Money or Gold and Silver
It is this imbalance between the supply and demand for the paper money leading to a rise in prices causing inflation and people lose confidence in the economy.
Since gold can be used as a monetary exchange it is known as hard currency along with silver and other commodities. Many believe that putting money into bullion coins or gold bars will hedge against inflation or an economic depression.
Just printing more money is not the answer and increasing bank credit or printing currency will only make matters worst as has been seen when Bernanke's press conference disclosed the buying of treasury bonds to stimulate economic spending.
Is Inflation protection possible?
These attempts to stimulate the economy has proven to devalue or just delay a inevitable market crash. Investors turn to inflation protected securities. The real rate over return of inflation with no credit risks in asset classes with fixed income securities and equities being a popular choice.
Knowing what your inflation will be during the life of your bond is how you get a real rate of return with an IPS. The entire accrued principle is paid out at maturity giving you interest payments in two parts.
Source: Read more about Treasury Inflation Protected Securities and Bond articles at Investopedia.