While I am thinking of it, does anyone have ideas on how best to approach the current situation from a personal standpoint. Of course this differs from person to person but there must be a general, preferred strategy.
If I knew, for sure, that a hyperinflationary outcome is on the way, I would try to borrow more and spend faster than everybody else. But I don't know for sure that we won't have a washout first even if by accident. In fact I would rather see some of these high on the hog bums shaken out.
The best I can come up with is to take advantage of the biases that seem to be built into the current system and pursue a low debt strategy instead of no debt. With the schedule A still available it seems preferable to run just enough debt against the house to achieve that critical level which allows deductions for the other taxes and miscellaneous expenses to come off.
Can anyone make the case that high deductible debt against the house and deductible margin interest against securities is a high probability gamble at this stage of the game? Could I count on the Fed to bail me out? How about the schedule C? Any tips for a retired fellow looking for something to do?
Fake Ben Bernanke
FakeBen.com
FakeBen is a blog to monitor the Fed and its actions and encourage community participation. At FakeBen, we believe that the Fed policy of the last two decades has created a credit bubble as large as that created in the 1920s. This bubble will lead to either inflation, a recession, or both.
