wednesday which way, page-17

Hi Meerkat, we had high, although not hyperinflation, through the 70s. after a long upwards period 1949 to 1966, the market averaged sideways for the next 16 year...overall the DOW didn't lose points but inflation ate away at value....

according to kondratieff this should be a deflationary period and not inflationary....but will the actions of the fed cause hyperinflation down the track??? will they just print the dollars to cover their debt ?? that remains to be seen. If that is the case then cash is definately a no no. Too much personal debt would also be a problem because of high interest rates. As you suggested on the other thread you would have to think hard assets would do well....will wages rise in step with inflation ?? that would keep the masses on par whilst still diminishing debt. So real estate and commodities maybe would retain value ??...that is retain value against inflation not necessarily grow in value.

and what happens to the US if they go into hyperinflation but China does not ?? after all the US is very badly placed with debt compared to countries like china. No more cheap imports....does the chinese currency becomes the world standard.....Does the US avoid bankruptcy but hand their superpower status to china ?? I don't think they would willingly do that and sadly a feature of this part of the cycle is war.....lets hope it doesn't come to that.