The Dollar

From Zero Hedge, Whither Hyperinflation.

Our belief is that the worst case outcome is not a fat tail, and is a question not of if but rather when. The ironic situation that the U.S. and the entire Developed world has put itself into is that due to the measures taken at fixing the broken financial system, which one could argue were precipitated by the collapse of Lehman, or alternatively, taking a cue from Soros’ book, began when the massive credit bubble started some time after Bretton Woods, the outcome of the current period of financial instability, will be a world of even greater financial distress marked by hyperinflation in most western countries.

As seems popular lately, his recommendations,

“[H]ard assets” are a safe bet. TIPS, shorting treasuries, purchasing currencies of those countries that are not expected to have huge deficits and/or untenable leverage, commodities (we still like our “risk free” profit idea, although the contango now has collapsed, so if you did it at the time, props to you), others?


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