Tuesday, June 2, 2009

Why should you pay attention when China laughs at U.S. Treasury Secretary Geithner?

United States Treasury Secretary Geithner recieves a response of laughter by Chinese students. Why do the students laugh you might ask? Well, to put it bluntly....... they are smart. America is going down a scary path by printing/creating massive amounts of money. To understand why this is important, you as the reader need to read and comprehend what "Fiat" currency means. Fiat money can and has in the past become worthless due to hyperinflation. Hyperinflation can occur when massive amounts of fiat money is printed/created. Get the picture? As far as investing goes.......you should be in the U.S. stock market as inflation occurs because it artificially inflates asset values. What does that mean? It means that the market goes up. However, be ready to pull your money out when riding the inflation wave dies down. I hope this explanation helps some people. Here is the article about Treasury Secretary Geithner being laughed at:

http://www.reuters.com/article/marketsNews/idINPEK12423320090601?rpc=44

Questions? Tell us what you think........

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