Inflation Investments Are Getting Interesting

One of the strongest beliefs that our current Federal Reserve Bank Chairman Ben Bernanke believes is that the government should print money when the economy worsens.  This is exactly what has happened through this entire recession.  When President Obama and Bernanke decided that housing would lead us out of the current recession, the government printed huge amounts of money to buy mortgage backed securities.  They also made the home loan modification program Making Home Affordable which once again costs the government great amounts of money.

No one knows if the home loan modification program is working yet, but the economy does not seem to be getting that much better.  If it does get better or not, one thing is for certain; we are going to see massive inflation.  When the Federal Reserve Bank injects TRILLIONS of dollars into circulation, there is no doubt that we are going to see inflation and possibly even hyperinflation.

If this is the case, the best investments to make are in commodities.  If you truly believe we are going to see huge amounts of inflation, it is very wise to get into investments like gold, silver, oil and base metals.  Some of these commodities sold off very hard in the massive panic of 2008 for no real reason.  There was no supply and demand balance created just because the global economy was brought to its knees.  Just because trillions of dollars were lost more gold was found?  I do not think so.  Some could argue that there isn't as high of a demand, but if there is inflation you will see demand for gold like you have never seen before.