Sean’s Rant

Although the below film is outdated and does not reflect the recent swing towards the dollar, it rings true and projects where it will go. I don’t see the other currencies being too successful either though, considering they aren’t gold backed either. That is why I strongly support gold silver and oil (GLD, SLV, USO or BP). I own USO and BP. 

I just talked about this here, but I want to go over one portion of what Buffett said again. He said that there is a guarantee of inflation. There is not a guarantee of the economy turning around soon, although he is betting long term. So here’s my play and why I picked the investment class ratios I did. 

Ok, so I didn’t predict this specifically, but it is definitely in line with what I was saying before about the credit crisis and the government interaction in it. It will be interesting to see what continues to happen. So far this year, publicly, the government has forked out about 1.4 trillion in handouts in an attempt to ‘save’ the economy. About 200 Billion with the economic stimulus, 200 Billion to Bear Stearns, and 1 Trillion with the recent Fannie Mae & Freddie Mac bailout. Where will this end? It doesn’t seem like the US Government is beyond taking over the whole private banking system by the way it is acting. Also we have to consider the financial implications involved here. Where is the money coming from that the US Government/Federal Reserve is using to do things such as the bailout?

See: Inflation Salary Calculator for a nice tool to calculate what you should be getting based on the beginning of the year starting salary. I think this is going to be a huge issue soon, with the rate of inflation where it is now, and if it continues at this pace, which it looks like it will be doing.