There isn’t much to look forward to after the election.  After we get by this financial crisis, we’ll have to focus back on the slowing global economy.  We can try to bail out homeowners and lower rates perhaps a couple more times but that’s about it.  I really don’t want to be a pessmist but I’m a realist when I would burst out laughing if you said that the recession will be over by the middle of next year.  We can fix the credit crisis much faster than we can fix a banking crisis.  It’s not the financial system that is really damaged but it is psychology of the investors of the world.  Here we are after tons of us burned by real estate, money markets, bonds, stocks, and businesses (well not quite since the major impacts of the recession didn’t play out yet).  So the human psychology has been damaged servely especially with the baby boomers nearing retirement.  Let’s say we’ll be in a little risk adverse for a while. So most of us will be hording whatever money or credit that we can get out hands on.  The world will probably be doing the same thing.  Cash is even more king now.  Businesses are hording to withstand the recession.  Bank are hording because they need to compensate for their writeoffs and decreased earnings.  People are hording because we just don’t want to starve or be homeless.  Fortunately for one thing, government sure isn’t hording..they are practically giving away money (think AIG, Banks, Automakers, everyone except you and I apparently).  How come we get mad about welfare to the poor and we don’t get mad about welfare to the rich.  What is up with the stigma?  Anyways we have a crisis of banking not credit at this time.  While money is available from governments, we don’t have anyone in main street willing to part with cash.  Well until…massive inflation.

When inflation starts becoming a topic of discussion, we’ll see some of the biggest moves in real assets.  Moves into oil, gold, and everything real.  There is a disconnect at this time because everyone keeps saying the word “deflation.”  Deflation.  Deflation.  Deflation.  Seriously now how long will this deflation last until the money starts chasing.  Keep in mind, inflation may be a little ways off but it is a certainty that I will bet my life on.  We are going to see runs at certain currencies in the near future and the runs will come like the runs at our banks.  And possibility there may be a run at all currencies at the worst case scenario and we may have to figure out a way to develop a global reserve currency.  I wonder what that may be…perhaps something a little more solid.  But the road to all this money printing will lead to the greatest inflationary pressure that this world has ever seen and that is for sure.