Eric Fry wrote Wednesday in The Daily Reckoning that inflation isn't getting the respect it deserves. Here's what he said: The I-word is on the minds of almost no one these days...except for the minds of our colleagues and a smattering or rogue financial market observers. But with each passing day, inflation seems less and less a theoretical fiction, and more and more a genuine threat.
To be sure, no self-respecting economist or self-aggrandizing central banker is acknowledging any inflationary risk whatsoever. But the indifferent data points of real-world prices testify to the contrary.
Agreed! He titled the article: The Underappreciated Threat of Inflation and you can read it on their site here.
Eric continues: If history is any guide, Chris Mayer contends, inflation will likely get much worse. Everyone seems to know the US inflationary story of the 1970s. The official inflation rate hit nearly 14% by 1980. In other countries, it was worse. In the UK, inflation topped out at 27%; in Japan, 30%.
Chris is not expecting 27% inflation rates, nor even 14% inflation rates...at least not yet. But he does believe that 2011 is the year when inflation will play the role of wrecking ball.
Hmmm, the wrecking ball to your portfolio or owning physical gold, numismatic gold and numismatic silver? I'll take the precious metals dealer Lear Capital on that choice any day!