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Wakum Mata!
Politcally Incorrect Musings
Standup Comedy 
2nd-Jun-2009 10:43 am
Money
Tim Geithner is woefully inadequate in his job performance. The man is in way over his head. However, he may have a second job as a standup comedian.

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Geithner backs strong dlr, says China's assets safe
Sun May 31, 2009 11:57pm EDT

BEIJING, June 1 (Reuters) - U.S. Treasury Secretary Timothy Geithner on Monday reaffirmed his faith in a strong dollar and reassured the Chinese government that its huge holdings of dollar-denominated assets are safe.

[...]

"Chinese financial assets are very safe," Geithner said. His response drew laughter from the audience. (Reporting by Glenn Somerville; Editing by Alan Wheatley)

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emphasis mine

"Okay, Robomarkov, we get it. You don't like this administration! What is the point of telling me this?"

The point is to tell you where to put your money. China is getting out of long term US debt. When that happens, the government will have to finance its debts with more debt: i.e. it will start to print more money. Inflation is coming and it will likely be BAD when China pulls out. That means that you ALSO need to stop investing in typical US debt instruments. Follow the money.

US debt is not going to be a good place to invest. Get into hard assets and foreign currencies. There are, however, inflation protected Treasury bonds called TIPS and I-Bonds. However, if things continue to be deflationary, you'll get killed on the interest rate. But if you invest in regular bonds and notes and we go inflationary, you'll be screwed then, too.

Hard assets: gold and silver are not really good investments over long terms. However, over short terms they can perform miraculously. Other items are foods, mining, fuel (oil and gas).

In short, invest in things that people ALWAYS need. Go to the basics. Look at the supply chain. For example, you need bread. What is bread made from? Wheat. What do farmers need? Fertilizers and seeds. We need energy. Who supplies it? Where do the energy providers get their fuel? Capital equipment is needed for all that drilling and digging. Who makes it? What do they need? Metal!

Get it? Now, go cover your assets!
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