Bolling: Commodity Opportunities Abound

As I answered the question about people buying everything they wanted, something became very clear to me. I said, "Think about it Eric Chase, if God dropped money from the sky, why would anyone want to work? If no one worked, nothing gets produced ... So how could anyone buy food, (and to further drive the point home) or the laptop you keep asking me for?"

"If you were given all the money you need, where is the incentive to get up early in the morning, leave your family and go to work to produce the things we need to live?" I continued: "If everyone had tons of money, why would it have any value at all?" He suggested then that "maybe seaweed would replace money." Maybe. But in the meantime, money is being dropped from the sky and it will eventually become "worth less" if not "worthless." By the way, about my son's seaweed analogy: I think he gets it.

And then, wow, it hit me like an ice cold shower. We are headed for a period of serious inflation with all the stimulus (free money) we are pumping into our economy. The dollar will be dramatically devalued and the reflation of the U.S. economy will happen, in a big way! Watch oil, gold and agricultural commodities soar in the coming years. With cheap and free dollars pumped into the system, the value, or buying power of those dollars, has to drop. The things we buy with dollars will increase in price just to keep up with the devaluing currency that is traded for it. And toss in a recovery and rebound in demand, you have the makings of a serious price recovery.