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If Inflation Hits 

Inflation has become, once again, an issue. The current inflation rate which includes food, energy and insurance costs is hovering somewhere around an annual pace of 7.5 percent. 

And this level doesn't include the skyrocketing cost of oil which U.S. corporations have been swallowing. Soon they will be forced to pass the costs along to customers which will fuel even higher rates of inflation.

What can the government do to stop the new age of stagflation? Almost nothing. If they raise interest rates inflation will fall but the economy will slow and unemployment will explode.

If they reduce interest rates the economy will improve and unemployment will fall. But inflation will skyrocket.

Stagflation is like being painted into a corner. There's no easy way out.

While I don't expect runaway inflation to be a problem anytime soon - you can never tell. Debt fuels inflation and today our economy is wallowing in record levels of debt, including consumer debt which now exceeds 2.7 trillion dollars! In this debt-laden environment if inflation gets started, we might be in very serious trouble.

If inflation does hit - you’ll want to avoid holding cash as much as possible as the purchasing power of any cash you have will steadily decline with each passing day. 

I recently saw a film of what went on in Argentina when runaway inflation hit their economy. Official new price increases were posted by the government in the stores several times each day. As a result, workers there insisted on being paid daily in cash.  

At the end of the work day they would each receive their daily pay packets and run (not walk) to the stores to spend it all before the next official price increase took effect. It was really bizarre to see all those people in a bunch running from the factory to the store each day cash in hand!

In comparison, during deflation your salary will be reduced (if you're lucky enough to have a job). Few people will have cash to spend. Under those conditions paying off a fixed dollar debt will become much more difficult as you’ll have to work harder and longer each month to come up with the same payment.

But during periods of inflation the opposite occurs. With inflation debt is your friend. You can pay off your debts with cheap inflated dollars that will only get cheaper over time. Your salary will be increased much more rapidly than in the past in an effort to keep pace with inflation - but fixed price debts will usually remain constant.

After a few years the bills that used to keep you up at night will become silly little debts that you’ll be able to pay off with mere pocket change.

There are ways to protect yourself from both inflation and deflation - no matter how bad things may get. And, more importantly, there are tactics you can use to make quick and easy money no matter how nasty inflation becomes. Order my guide today and protect yourself.
 

 
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