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Old 09-29-2008, 09:45   #36
nmap
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Join Date: Jun 2007
Location: San Antonio, Texas
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Quote:
Originally Posted by GratefulCitizen View Post
Sounds like a recipe for some serious inflation.

A measure of wheat for a penny, and three measures of barley for a penny; and see thou hurt not the oil and the wine.
Of course. There are two ways that I can discern out of the current situation. We can buckle down, have an austere national budget, and cut back on both personal and public spending for a decade or so. Or, we can inflate. Since both politicians and the public seem to prefer short term paliatives, I suspect that you're right about inflation.

On your second point - I strongly suspect food products will increase in price. To that end, I've taken modest positions in DBC and DBA, which are commodity ETFs. DBC is a broad index, whereas DBA focuses on wheat, soybeans, corn, and sugar. The prospectus for each is HERE. Note: Before even considering these, one should read the prospectus. And they will complicate one's taxes, since they generate form K-1 on March 15th.
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