Better Watch Out, Better Not Cry

Click on the hyperlinked title to this post. Former Fed Chief Paul Volker warns the US of inflation. It's great to be retired with gravitas. You can say anything. How seriously would you take it if Geraldo Rivera said the same thing?

Volcker warns that the US is "spending about 6 or 7 % ... more than it is producing." And get this - he thinks that's unsustainable! Egad! You don't say! Now if you or me decided to spend 6 or 7% more than we produce, maybe we also could use the story that we are stimulating demand. And that the rebound effect would generate tax revenues that would more than compensate for whatever shortfalls we were creating short term.

Econo-Girl also thinks we are in for a spate of inflation. Things to do: buy gold and pearls, buy inflation-adjusted bonds, get a government job that is inflation-indexed, get rid of flexible-rate debt in mortgages and credit cards, buy in bulk starting in about six months, get extra staples on sale now that you know you will need in the future but don't need right now like sneakers, learn to make food and freeze it and learn how long it can be safely kept that way.

These are just a few ideas. Econo-Girl likes getting over on the system. She wants you to do it, too.

As a postscript, if you've eaten a chicken and nothing is left but the bones, pull out that old slow-cooker and throw the bones in with a lot of water. Heat it up for six hours. You then have chicken broth for a year. You may not be wanting it now, but when you have the flu you don't want to be scrambling around for enough cash and then go into the cold for soup.