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3 Ways to Prepare for Inflation

February 19, 2011 Comments off

In case you haven’t heard,inflation is on its way. Unprecedented levels of government debt and deficits will likely weaken the value of the dollar at some point, thus raising the prices of everything it buys.

But, the Federal Reserve says there’s no significant inflation yet. In fact, it recently said there might be too little inflation and will likely keep interest rates low for the foreseeable future, further increasing the money supply. Meanwhile, commodity prices are going through the roof.

The price of copper has more than tripled since the end of 2008, oil is near $90 a barrel (also near the high since the financial crisis) and prices of several food commodities like corn and wheat are near all time highs. These materials are in turn used to make many consumer goods. It’s only a matter of time before higher input prices come out the other end in the form of higher prices for consumer goods.

In fact, inflation has started to Read more…