Inflation is exploding. Warren Buffett is even jumping on the “inflation is inevitable” bandwagon. Bloomberg has Buffett saying the following just a few days ago:
“If you ask me if the U.S. dollar is going to hold its purchasing power fully at the level of 2011, 5 years, 10 years or 20 years from now, I would tell you it will not.”
We all know that inflation is inevitable. It’s just basic economics. Printing trillions of dollars and flooding the market with trillions of dollars has already made gold, silver, oil, food, and plenty of other products to see their prices absolutely explode. The same will now be said for other consumer goods over the next year or so.
A staff writer at Stand Strong Research just wrote an extremely important articled called “The 3 Stages of Inflation“. The article explains what everyone should know about inflation:
Stage 1. Low Inflation.
Low inflation is when prices increase just a little. People will save money and cut spending in order to wait for prices to go back down. This means that sales are relatively low.
Stage 2. High Inflation.
High inflation is when people suddenly realize that prices are probably going to keep increasing over time, so they’ll buy what they need now in order to cut their losses. Waiting to buy what they need will just mean they’ll have to buy more.
Stage 3. Hyperinflation.
This is when things get bad. Prices are exploding so fast the people end up deciding to spend their money as fast as possible because they’re money is quickly becoming worthless — buying stuff is the quickest way for them to fight inflation. All of this causes inflation to get worse, making a vicious monetary crisis cycle — or “hyperinflation”.
We’re in the middle of stage 2. Stage 3 could hit us anytime, and is one reason I’m putting my money in silver and other anti-inflation investments.