Warning: Inflation is hazardous to your wallet.Financial analyst and money manager for high net worth clients, Stephen Leeb, is telling his clients and newsletter subscribers, "buy gold." According to a October 11, 2007 article in the New York Sun, Mr. Leeb believes the growth in the Third World will create "an uncontrollable inflationary spiral." Pointing to past cycles such as in the 1970s, where a sharp rise in commodity prices led to gold prices increasing 33% per year, Mr. Leeb is recommending that his clients buy gold. "[G]old performs best when inflation is accelerating. The rapid rise in commodities prices in recent years almost surely will lead to increasing inflation as they work through the production process."
Banks to Set Up $80 Bln Fund to Limit Credit Crunch - Just what the United States needs, more liquidity sloshing around (hence, more inflation!).
