When I buy government debt of a country which can do whatever it wants with its monetary base, I am betting that they are prudent and don't do anything stupid and preserve the value of the fiat money. And currently I would be worried about that.
But if you invest in physical plant and resources, you have to worry about the government of that country taking them away from you.
Don't be fooled by the fact that the official American religion is worship of the free market - that's just bullcrap for public consumption. As soon as the wheels hit the rail, the free market goes out of the window if it's inconvenient.
Welcome to ET by the way.
- Jake If you only spend 20 minutes of the rest of your life on economics, go spend them here.
An ex-colleague of mine in Munich had a grandfather who owned a whole street in Munich. During the height of the hyperinflation he sold it for many many millions. They actually found a whole chest full of money after he died tucked away in the basement. Everytime my colleague tells that story he gets really sad because today the rent would suffice to easily pay for anything he could ever dream of. So he is still working and paying off his house...
And those took stuff away from citizens, nevermind furriners who speak funny.
