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Interest rates and in(or de)flation


Not hearing much these days about the "truth" that commodities reveal the "true" inflaton that isn't in all of those indexes.

2 Replies
Red Steele
Veteran Advisor

Re: Interest rates and in(or de)flation

If $3.50 corn and $9.50 soybeans are the new harvest glut "low", what part about commidity inflation don't you understand?

BA Deere
Honored Advisor

Re: Interest rates and in(or de)flation

I`ll be shocked if i get a reply, but whether we have inflation or deflation has everything to do with your `time horizon`.  If you`re looking at 5 years, should you look at farmland and gold as a safe haven? probably not.  If you are looking at a 50 year time horizon, should you invest in hard assets?...oh hells yes!


Let`s look back 50 years ago, in 1964 the quarter that you received in change would melt down to over $3 in silver, to say nothing of the numismatic value.  That melted down silver in that 1964 quarter would buy you 1 gallon of gasoline would need 12, 2014 quarters to buy 1 gallon of gasoline today.


In 1964 the anual wage was $6,000 or $3 per hour or (12) 1964 quarters for 1 hour of work..that would be $36/hr today or $72,000 annually...Is the average salary $72,000 today????


We argue about if the minimum wage, well in 1964 if you were a hobo and made $1/ were making $12 per hour today!!!


A "strong dollar" is only strong compared to other country`s printed currencies, this is what`s really going on here.  To mask it, the fed in cojunction with JP Morgan short gold, monetize debt, obviously this fed printing does not make it down to "mainstreet" or the lowest bums would be making $12/hr.


Free trade is also a  factor in pitting American workers against foreigners...that are both overseas and domestically these days, something we weren`t cursed back in 1964.