Is massive inflation, like the kind we had in the mid-70’s, right ahead of us?
Bad Money author Kevin Phillips believes it is. I might add he is not alone in his thinking.
I won’t go into all his credentials, but they are extensive.
He also broke away from the republicans and is now criticising the democrats. He blames everyone for this current financial crisis to a certain degree.
Here is what he is saying..
“My theory is that if we are in a commodities cycle, what you will get will be more like 1973-74-75 … where as soon as the recovery begins you get rising inflation because you’re going to play havoc with all money supply and liquidity that’s been unleashed ” he added.
Is he right?
I am leaning toward a ‘yes’.
It only makes sense that once all this flood of money is finally unleashed and there has been a lot of dammed up demand for cars, housing, etc., yes, inflation is a very strong reality.
So what about us?
Investing in real estate has always been an excellent hedge on inflation.
Your real estate will increase in value as demand increases, especially if you are in good locations.
So if you’re facing vacant rental units right now, like yours truly here, don’t despair.