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<p>[QUOTE="InfleXion, post: 1728431, member: 29012"]My point was simply that there are numerous methods of investment, and not everybody is an investor or knowledgeable about markets and the history of money so it isn't fair to assume everyone automatically knows how to protect themselves from inflation or that inflation is not an insidious, hidden, and unrepresented tax.</p><p><br /></p><p>You have said yourself, don't fight the Fed. I assumed you understood that the reason why people say that is because they are directly pumping up stocks, bonds, and MBS with QE through their primary dealers, and that fundamentals do not not take precedence over this.</p><p><br /></p><p>The reasons are very relevant, because the reasons have consequences; causes and effects. To simply look at stocks and say, well they are at all time highs so I should buy is foolhardy because that has no bearing on whether they are overbought, underbought, safe, risky, etc... Icarus comes to mind. The reason for stocks being so high (inflation) necessitates deflationary pressure. This is typically met with more inflation, creating more pressure. It's not a sustainable model, but rather a vicious cycle. The good news for gold and silver holders is that hard assets are immune to default so even if they do take a hit they are protected in ways that traditional financial vehicles cannot be.</p><p><br /></p><p>To be truly diversified effectively one needs assets both within and outside of the financial system, because when the derivatives start to unwind black holes of infinitely rehypothecated phony assets it will have far reaching impacts in the cyber-financial world due to counter party risk.[/QUOTE]</p><p><br /></p>
[QUOTE="InfleXion, post: 1728431, member: 29012"]My point was simply that there are numerous methods of investment, and not everybody is an investor or knowledgeable about markets and the history of money so it isn't fair to assume everyone automatically knows how to protect themselves from inflation or that inflation is not an insidious, hidden, and unrepresented tax. You have said yourself, don't fight the Fed. I assumed you understood that the reason why people say that is because they are directly pumping up stocks, bonds, and MBS with QE through their primary dealers, and that fundamentals do not not take precedence over this. The reasons are very relevant, because the reasons have consequences; causes and effects. To simply look at stocks and say, well they are at all time highs so I should buy is foolhardy because that has no bearing on whether they are overbought, underbought, safe, risky, etc... Icarus comes to mind. The reason for stocks being so high (inflation) necessitates deflationary pressure. This is typically met with more inflation, creating more pressure. It's not a sustainable model, but rather a vicious cycle. The good news for gold and silver holders is that hard assets are immune to default so even if they do take a hit they are protected in ways that traditional financial vehicles cannot be. To be truly diversified effectively one needs assets both within and outside of the financial system, because when the derivatives start to unwind black holes of infinitely rehypothecated phony assets it will have far reaching impacts in the cyber-financial world due to counter party risk.[/QUOTE]
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