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<p>[QUOTE=&quot;Otter, post: 755922, member: 3464&quot;]Will investors face the reality of inflation?</p><p>*Dow Theory Letters, by Richard Russell, September 11, 2009:</p><p><br /></p><p>&quot;Many years ago I came up with the expression, &#039;Inflate or die.&#039;&nbsp; I felt this described the US&#039;s attitude toward economics -- that was true 20 years ago, and it&#039;s even truer today. By the year 2020, the US will have a national debt probably approaching $20 trillion plus a lot more in unfunded liabilities that won&#039;t show on the books.</p><p><br /></p><p>By that time the dollar will in all probabilities no longer be the world&#039;s reserve currency. That will mean the US will have to earn its money, rather than print it. There&#039;s no way in the world that the US is going to earn the kind of money needed to pay off or even reduce its enormous debts. What&#039;s the answer? The answer will be -- &#039;Inflate or die,&#039; and the US will, as usual, resort to inflation.</p><p><br /></p><p>I&#039;ve wracked my brain trying to think of another way out of America&#039;s debt predicament, and I can&#039;t think of another way. The way will be -- inflation, and a lowered standard of living and the pain that goes with inflation.</p><p><br /></p><p>We&#039;ve spent it with our obsession for the good life, and our further insistence on maintaining an empire. You can&#039;t have an empire and at the same time enjoy &#039;the good life&#039; and be the planet&#039;s biggest debtor. It just can&#039;t be done.</p><p><br /></p><p>Gold is true, time-tested wealth. Fiat money is paper mandated to be wealth by law. The law possesses power. But there&#039;s one thing that trumps fiat law -- reality.&quot;[/QUOTE]</p><p><br /></p>

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