A year ago I would have bet that we would be seeing at least some signs of inflation now. We aren't simply because there isn't a demand for anything right now (except for gold and ammunition, of course).

One way or another, that's going to change. The financial markets are, somehow, going to have to absorb $4 trillion in debt in just the next six months--while at the same time dealing with the crisis over the euro, and the continuing mess over Fannie Mae and Freddie Mac. It's not at all certain they can do it.

And Bernanke's options at the Fed are pretty limited. If he could lower interest rates below zero, I have little doubt he would have done so already. He has to keep the printing presses running. It's really the only option he has.

I'm buying a little silver, which is cheap in relation to the price of gold, but ammo is still my primary investment. I just don't see how bullets are going to get any cheaper.

Onward and upward,
airforce