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What's the best defense against a major deflationary sinkhole?

jmski52jmski52 Posts: 22,856 ✭✭✭✭✭
in Precious Metals
Suppose that we really are spiraling into a major deflationary sinkhole, and that asset valuations are about to be crushed.

What's the best antidote for this trend, on a personal level?

1) Take out more debt and then pay it off with cheaper dollars?

2) Pay off all debt now even though the dollar is going up quickly?

3) Hold paper dollars until values are done being crushed?

4) Buy more gold?
Q: Are You Printing Money? Bernanke: Not Literally

I knew it would happen.

Comments

  • cohodkcohodk Posts: 19,130 ✭✭✭✭✭
    Cash is King.
    Excuses are tools of the ignorant

    Knowledge is the enemy of fear

  • derrybderryb Posts: 36,824 ✭✭✭✭✭
    #3

    "Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey

  • secondrepublicsecondrepublic Posts: 2,619 ✭✭✭
    No debt helps. Having dollars is also a big plus.
    "Men who had never shown any ability to make or increase fortunes for themselves abounded in brilliant plans for creating and increasing wealth for the country at large." Fiat Money Inflation in France, Andrew Dickson White (1912)
  • BaleyBaley Posts: 22,660 ✭✭✭✭✭
    Diversify

    Liberty: Parent of Science & Industry

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