Saturday, February 24, 2018

Inflation Concerns? Just Get Yourself Into Debt

April 6, 2010 by  
Filed under Inflation Hedge Strategies, Move

If you’re really worried about inflation, just go out and borrow as much money as you can. Then when you have the cash in hand, buy yourself some gold, or silver, or a nice co-op in Manhattan; whatever you think is going to keep up with inflation.

Then just before things cool down some, you sell whatever it is you bought for a profit. (Okay, it’s an inflation adjusted profit, but it’s still going to be enough to pay back your loan, and then some. The and then some is your profit, that was funded with somebody else’s pre-inflation money.

You think we’re making this up? Marketwire reported on April 6, 2006:

MIAMI, FL, Apr 06, 2010 (MARKETWIRE via COMTEX) — Caribbean Casino and Gaming Corp. (PINKSHEETS: CGAQ), announced today its intentions to complete a Regulation A filing and entertain Debt Funding to hedge the potential inflationary market conditions foreseen

The company’s CEO Steven Swank stated,

“We always entertain financing offers for expansion, however with our shareholders in mind, we never considered making a commitment until now. As the economy recovers, jobs increase and the Federal Reserve dilutes the value of the dollar, it appears that inflation could be a major factor in acquiring affordable capital in the future. Therefore, we are in discussions to raise capital now to hedge this risk while following through with expansion efforts which will offset costs and continue to benefit the stockholders.

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