There is no doubt that inflation has been hitting every sector of the United States economy. This means basic commodity prices are going up at an alarming level. Food inflation for example is particularly debilitating for most Americans. As the common folks see their money lose value due to hyperinflation, more and more commodities become out of reach which could lead to hunger, malnutrition, and more crisis. You can survive this crisis by sharing in the growth of agriculture and looking for alternative real currencies such as silver or gold. Â
Food inflation means higher prices of agricultural products. This spells trouble for non-agricultural producers but signals unprecedented growth for the ordinary American farmer. Agricultural products, like silver and gold, have intrinsic natural values. That is because people will not stop to eat no matter if the inflation goes hyper. People around the world will keep on eating food even if there is a global crisis. So if you can shift your focus to agricultural production, you can ensure a steady food supply in your home and you can enjoy the windfall of food inflation. Because agricultural products have high prices, you can certainly enjoy big profits from them.Â
The Federal government therefore should not focus on providing bailout money to irresponsible financial institutions and the money market. In the first place, these banks, fund managements, and lending companies are responsible for the current mess created by the financial crisis. These institutions abused the money market by speculating on high leveraged finance investments. Because the paper money economy in itself does not produce value, it is bound to collapse once it reached a saturation point. The onset of the financial crisis is a reversal that seeks to correct the abuses created by banks. However, instead of letting market forces correct itself, the Federal Reserve and the US Treasury Department started exposing the economy to hyperinflationary threats by buying back unsupported assets and toxic debts.Â
There is a growing penchant today to print more money to fund bailout initiatives and propel stimulus packages. Such economic direction is practically a suicide path as the infusion of more money in the economy tends to hyper inflate the prices of commodities and services. What the Federal government should do is to go back to basics. This means focusing on agricultural production and increasing productivity and food security. The Fed should also refrain from arbitrarily printing fiat currency as this could further weaken the dollar which could lead to its collapse as the international reserve standard. Currencies therefore should be backed by silver and gold again in order to reflect the real value of paper money.Â
There is no end in sight for the current crisis because authorities are taking the wrong economic medication. The only way out to curb hyperinflation is to focus on agricultural production to drastically stop food inflation. Governments as well as individual investors should also heavily invest on silver and gold in order to create real value for the economy which could arrest the spiraling inflation.