Tuesday, May 26, 2009

Inflation

With Obama's rush to inject money into the system, long term, I'm worried about inflation. Inflation is when the cost of goods go up and purchasing power is less. The effects are broad and it leads to a lower standard of living. We forget about inflation because in my lifetime it hasn't been a problem. But like anything, it'll rear it's ugly head once we forget about it. We aren't thinking about it at the moment because the focus is to stop the economic bleeding. And that argument might be the right one. But long term, the only way an individual can protect themselves against inflation is getting into the stock market, whose rising prices will reflect the bump of increased costs of goods.

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