Hussman’s weekly column is one of the scary-good articles that he puts out once or twice a month. Although I would love to reprint the entire thing, I have chosen the excerpt below as it precisely describes why I have been so tame on committing more money to a US inflation trade. Instead I have made some creatively sound decisions, outlined in my newest piece Surviving The Recession of 2010.
“In my view, deeper loan losses are ahead, and if we deal with the next round the same way that we dealt with the last, we will ultimately succeed in debasing the U.S. dollar. There’s little inflationary pressure at present, and chances are that fresh credit concerns will create enough demand for government liabilities to forestall inflationary pressures for several years more.”
http://www.hussmanfunds.com/wmc/wmc091116.htm
