In the humble opinion of your Bonus Commissions friends, economic policy, as espoused by the Federal Reserve and other central banks around the world, is built on outright lies. We’ll talk about the specific lies they like to tell in a moment but first we want to ease your worried mind by telling you there is a way to mostly insulate yourself and investments against their deceptive nature. But we’ll get to that later too. First, lets talk about lies and the lying liars who tell them. Yes, we are somewhat ashamed at ourselves for borrowing that last phrase from Fuhrer Al Franken’s book title but it does have a sort of ring to it.
Here’s where the Federal Reserve’s logic goes hazy.
“A little inflation is necessary.”
This is one of the favorite lies told by our central bank masters. Even though it has been proven time and again that a lot of inflation is invariably preceded by a little inflation, they like to insist that a “little” is necessary for economic health. The logical extension of that thought process is that they must engage in inflationary tactics like wildly printing and spending money to achieve their goals.
The trouble is that no economist has ever been able to pinpoint the exact place where a little bit of “good” inflation stops and a whole lot of “bad” inflation begins. Furthermore, it has been conclusively demonstrated that inflation feeds upon itself and always starts with a small brush fire. Do you give a kindergartner a match and can of gasoline and tell him to go outside and play? That’s what we do by enabling our the Federal Reserve through the practice of fiat money.
So what can you, as an investor, do to mitigate this dastardly chain of events? We have a sinking feeling in the pit of our stomachs because we know the Federal Reserve will inevitably tinker with inflationary tactics and, like the kid playing with matches and gasoline, eventually get a disaster started they can’t control. Here’s the answer. There is one asset on an entire planet that actually functions better in the presence of inflation. Guess where you won’t find it? Wall Street. Guess where you will find it? At www.JasonHartman.com.
So here’s to you, central banks. Happy inflating!
The Bonus Commissions Team
Flickr / Focal Intent