Economists examine their own portfolios
Roger Showley, SAN DIEGO UNION-TRIBUNE
Sunday, August 21, 2011
Kelly Cunningham, National University Systems
It is surprisingly still a little higher than it was at the beginning of the year, although that may change tomorrow. Given the degradation of the dollar and downgraded U.S. credit rating, investment in precious metals and other inflation hedges seems to be the way to go, although those investments may already be highly speculated. Inasmuch as the federal government is unable or unwilling to significantly reduce deficit spending, and continues to borrow for unproductive purposes, creditors will start reducing lending and be unwilling to further loan without significantly increasing interest rates. Sharply rising inflation is the inevitable outcome.