[quote=MacLorry
It seems China and Russia realize the U.S. is in the process of
monetizeing the debt and are reducing their exposure to the dollar. Myself, I'm investing in TIPS funds, real property, and other known anti-inflation investments along with 25-year shelf-life food just in case people do choose mass suicide over inflation. I do have gold and silver, but I bought it when it was cheap, so I have no downside risk of holding it.
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MacLorry -
It seems that our actual investment mix is more similar than I would have guessed. With the exception of the TIPS and the 25 yr shelf-life food, the remainder is very similar. My real estate investment is in a substantial number of farms, which gained 34% in value last year. I can thank the Fed for QE which is why farmland has proven to be a great place to invest. IMO I would stay away from residential realestate, as I believe that the correction in prices still has substaintial downside yet. You and I agree that the Fed is likely to continue to monetize the debt. The more money that is created, the higher commodities and thus farmland should rise. So as the price of land in dollars rises, real estate taxes will rise also. History has seen farms that were without any mortgage, lost to taxes. With that being said, precious metals are a hedge against inflation, and thus having some PMs in an investment portfolio provides insurance against rapidly rising real estate taxes. The 34% gain I saw in the falue of my farms last year can be expected to produce 34% more in real estate taxes next year. The income produced by the farms can not always be expected to rise with the value of the land.
