As a general statement our predictions and outlook for hyperinflation remains unchanged. As we just reported, we are seeing significant signs of economic contraction from retails sales and consumer sentiment.
We believe that its a misstatement of fact that the economy actually recovered and that we are now slipping back into recession. We contend the the “recovery” is nothing more than government manipulation and slight of hand from printing, Fed tricks (QE1,2, operation twist), and general government misreporting of key economic figures such as inflation, and unemployment.
The bottom line is that the governments fiscal problems have not been resolved by one dime. The deficit is still running at $5 Trillion (according to GAAP methods), and there is zero sign of any political will from anywhere in Washington.
With the economy weak enough to hide Fed intervention and printing in support of a still-struggling banking system, the next easing by the Fed likely will trigger a massive dollar selling crisis and begin the process of a rapid upturn in domestic consumer inflation.
What should you be doing with your self directed IRA?
First and foremost, check your allocation of precious metals and make sure that your self directed IRA is properly balanced with precious metals. Secondly, start looking for other counter cyclical investments that can do well in an inflationary environment.
The information provided is for educational purposes only and are not a solicitation or offering of an investment, investment advice, or tax advice. You should consult with your tax, legal or financial advisor to determine the suitability of any investments made with a self directed IRA account.