Hyperinflation in food and energy and deflation in everything else – the new world economic order – how can you deal with it?
Fred Day
Feb. 11, 2007

The food prices will quadruple in the next five to ten years. The energy prices will also quadruple in the next ten years. The rest of the world economies will suffer severe deflation and depression because of hyperinflation in oil, natural gas and food will drain the economies out. The corn prices have already doubled in the last three months because of its need in producing Ethanol – a gasoline substitute. The sugar and all grain prices are headed higher. The meat complexes like pork, chicken and eggs are also appreciating prices. Orange Juice, Cocoa, Coffee – you name it, they are going higher.

Russia is leading cartel formation that can quadruple natural gas price by end of 2009. That will put enormous pressure on Crude oil and all sources of Ethanol substitutes.

The world is headed for a strange economic scenario. There is hyperinflation in food and energy and the rest of the economy will tilt towards deflation driven depression.

How do you cope up with such scenario? Common people in the main street are not accustomed to deal with such economics. The wealthy ones know very well what to do. The smart investors will use futures contracts and options to hedge against hyperinflation in energy and food. They will also hold their money in short term Tbills.

Hyperinflation in food and energy and deflation in everything else – the new world economic order – how can you deal with it?
Fred Day
The rest of the world economies will suffer severe deflation and depression because of hyperinflation in oil, natural gas and food will drain the economies out.
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