ByH Hemmat
While people are still asking when the recession will end and when their faith in traditional investing strategies will be restored, the rising inflation rate continues to suggest that a hyperinflationary depression will be coming first.
CPI based price inflation continues its climb, up now from 3.63% to 3.77% in August of 2011. This is a part of a relentless pattern which will likely continue until the price of things like food and gas become impossible for the average person to afford.
Inflation Rate Increase of Nearly 3.9% from January of 2011
The following table shows the rising inflation rate from the start of the year 2011:
1.5% in January
1.63% in February
2.11% in March
2.68% in April
3.16% in May
3.57% in June
3.56% in July
That's an increase of nearly 3.9% in the year of 2011 alone. Yet the Federal Reserve and United States government continue the very thing which promises continued price inflation: the creation of QE3 through money printing and entitlement programs like the recent "American Jobs Act."
If the Federal Reserve and the United States Government continue to ignore the rising inflation rate AND to pump money into the economy without creating any real value or production, a hyperinflationary depression is inevitable.
It's now up to the consumer to prepare by investing in commodities which will soon be hundreds of times more valuable than the US Dollar. These commodities include non-perishable food, Gold, Silver and Real Estate.
Will the Doomsday Survivalists Soon Have an Unfair Advantage?
No matter how bad the hyperinflationary depression gets, people will need to eat and they'll need places to live. During the last Great Depression, food prices were so high that millions of Americans were forced to eat from breadlines to avoid starvation. For most of us, it's impossible to imagine people in the United States starving as we now see in third world countries.
But if gas prices get high enough, transporting foods from areas where food is being produced to highly populated areas where it's not being produced will become VERY expensive. In other words, the more expensive gas gets, the more expensive food will get. When the US dollar loses its purchasing power, how will people purchase food?
And even for those who are investing in Gold and Silver, how safe will they be slipping those coins into their pocket and heading to the grocery store to buy food? This is why investors who see and understand the impact of a hyperinflationary depression are stocking up non-perishable food as a part of their investing strategy.
So those crazies who have basements full of canned foods might soon have an unfair advantage even over the people who were putting cash into their savings account and investing in traditional vehicles like paper stocks and mutual funds.
What to Invest in During a Hyperinflationary Depression
If the Feds and the leaders in DC are ignoring the hyperinflationary depression on the horizon, what hope does the average investor having of knowing what to invest in? The answer is to pay attention to what the financially savvy are already doing with their money.
Those who understand and accept what is certain to come and who are planning ahead will likely profit from what will prove to be the financial destruction of the average consumer. A hyperinflationary depression could turn out to be the opportunity of a lifetime, if you know what to do.
My advice to you - learn about what to invest in during a recession and how to prepare for the coming hyperinflationary crisis. No one will ever care about your financial well being as much as you will, and it's time to discover what it will take to keep the coming crisis from leaving you and your family in the breadline.
H Hemmat is the author of this article on what to invest in. Find more information, about what to invest in now here
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