With the recent weakness in the economy, we can now expect the Federal Reserve to reinstate their quantitative easing (money printing) program. Most pundits now expect the Fed to print another $2-3 trillion to prevent deflation at all cost. With this level of money printing, we are likely to enter hyperinflation some time in the future (3-5 years). The deflationists will disagree, but let's face it: History tells us that large amounts of money printing will eventually lead to hyperinflation (defined as more than 50% a year). But the deflationists will deny this with Japan as an example and claim that money printing does not lead to inflation. My answer to them is pretty simple: Look at all of the countries throughout history that have printed money and see what occurred. Every such country except Japan has experienced high inflation, if not hyperinflation. So knowing that the US will suffer this fate, what can you do to protect yourself?
