National University System Institute for Policy Research




(858) 642-8498 Get Started

Economists examine their own portfolios

U-T ECONOMETER

Roger Showley, SAN DIEGO UNION-TRIBUNE

Sunday, August 21, 2011

View Article

Kelly Cunningham, National University Systems
Answer: Yes

It is surprisingly still a little higher than it was at the beginning of the year, although that may change tomorrow. Given the degradation of the dollar and downgraded U.S. credit rating, investment in precious metals and other inflation hedges seems to be the way to go, although those investments may already be highly speculated. Inasmuch as the federal government is unable or unwilling to significantly reduce deficit spending, and continues to borrow for unproductive purposes, creditors will start reducing lending and be unwilling to further loan without significantly increasing interest rates. Sharply rising inflation is the inevitable outcome.