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If you have been pondering buying that stash of ammo or a dillon press, now may be the time. The FED announced yesterday they would do a second phase of quantitative Easing (turning the printing presses to HIGH) to try to get the economy juiced up. While this may or may not work, one definite effect is cost inflation.
If you print up $750,000,000,000.00 in new bills with no underlying value you increase the amount of money in circulation, and eventually those dollars eventually chase up the prices for commodities. (More dollars chasings less goods)
It didn't take too long for the price of copper to rise, its already up 4% this morning, less than 24 hours after the announcement.
There is a tag line on this board that goes something like this...its not that ammos expensive, its that your dollars are worthless.
The bottom line is the fed, over the next six months, will cut American's purchasing power for most items between 5% to 20% by de facto devaluation of the currency against all other currencies except the chinese Yuan, which is linked to the dollar. This is great from a national debt scenario, as we will pay off our bonds in devalued dollars, effectively cutting our debt by the amount the dollar falls, but it also will increase our cost of ammo...as commodities rise with the falling dollar.
One hedge would be to buy brazilian REALS and buy ammo later after cashing in the reals for greenbacks at some later date, or just stock up now.
If you print up $750,000,000,000.00 in new bills with no underlying value you increase the amount of money in circulation, and eventually those dollars eventually chase up the prices for commodities. (More dollars chasings less goods)
It didn't take too long for the price of copper to rise, its already up 4% this morning, less than 24 hours after the announcement.
There is a tag line on this board that goes something like this...its not that ammos expensive, its that your dollars are worthless.
The bottom line is the fed, over the next six months, will cut American's purchasing power for most items between 5% to 20% by de facto devaluation of the currency against all other currencies except the chinese Yuan, which is linked to the dollar. This is great from a national debt scenario, as we will pay off our bonds in devalued dollars, effectively cutting our debt by the amount the dollar falls, but it also will increase our cost of ammo...as commodities rise with the falling dollar.
One hedge would be to buy brazilian REALS and buy ammo later after cashing in the reals for greenbacks at some later date, or just stock up now.
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