10 yrs of Growth in 1 yr = Hyper Inflation?

http://research.stlouisfed.org/fred2/series/BASENS?cid=124 What’s the best way to protect oneself from hyperinflation? TIPS ETF? Commodity ETF?

whiskey and cigarettes. TIPS?. only if you believe BLSh1t

In high inflation, TIPS and commodities are expected to be the best performers, although if what is inflating is labor costs, then you need to get something that is closer to the production end, rather than the raw materials end. TIPS has never been truly tested in hyperinflationary times. If we are printing money and causing hyperinflation, then we are likely to be printing even more money to pay off TIPS. This means that people owning TIPS will be better off, but the payments will also be bad for everyone. Also the way the government calculates the TIPS inflation rate might be manipulated or simply unrepresentative of inflation in general. I seem to remember something about how the fall in home prices counteracted the inflation in food and energy prices earlier this year, so people felt inflation at the check-out counter, but TIPS did not pay more. Note also that TIPS coupons and principal appreciation are taxable. So about 1/3 of your inflation protection disappears in taxes. Also note that the TIP ETF has a duration of around 6-7y. That means that any attempt to reign in inflation rates through raising interest rates is likely to whack the price in a big way. If hyperinflation becomes a problem, I’m sure some manager will create a low-duration TIPS etf. There might be futures based on the CPI index or other inflation sensitive numbers. The trick there would be finding people to take the other side of the trade when you need it.

It’s going to be deflation at best and hyperinflation at worst. If you were a banker, what would you prefer? The answer is what we will have. Epic tough times are ahead. One’s job security should be their #1 concern.

Wheelbarrows, duh