Comment: Holding Pattern

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Holding Pattern

So much money is in a holding pattern, I think. Spend? Invest? Wait to see which way things are going?

Both my mother and my step-mother have made comments to me, lately, that indicate they're worried about the price of groceries. Restaurants just go out of business.

"The emperor is naked!" When the headlines finally make inflation official, the dollar will be dumped. If "prosperity" and "recovery" hit the headlines, first (falsely, of course), then people will start investing and spending. Either event will trigger a faster pace of price increases. We should be educating people against wage and price controls, now.

The Chinese, I'm told, are buying American real estate. I was told it was because we have property rights, here (they don't, there), but the same thing happened in the 80's, with the last inflation: the Iranians put dollars into real estate. It's either that, or gold and silver. You don't want to have dollars, you want something real.

Ron Paul, Peter Schiff, et. al. are correct: we can't predict when, exactly. We see a pattern that repeats itself through history.

What do you think?