by Rick Ackerman
I received an email from a friend on Monday touting a plan featured at ZeroHedge as “the only way to make money this year.” The plan itself, proffered by one Eric Peters, a fund CIO, seems like a good one: “Bet that…the central bankers will continue getting everything wrong, and double down when they do.” It is the hyperinflationary endgame predicted by Peters with which I would disagree. I argued as follows:
I loved this plan until I got to the last paragraph, Mike. Even if hyperinflation were possible — which I seriously doubt, for reasons I’ve been writing about for more than 20 years — it would be over in a matter of days, bringing in its wake a deflation that could conceivably last for generations. In such circumstances, the best hyperinflation “play” would be to pay off one’s mortgage in the blink of time available between hyperinflation’s onset and deflation’s coup de grace; and/or to exchange a fistful of Krugerrands that might very fleetingly spike to $50,000 for some choice farmland owned by an incredibly stupid farmer.