The Federal Reserve has been printing money by the truck load. When no one wants to buy our bonds, the Fed prints money to buy them. Ordinarily this would signal inflation. But for some reason there has been little inflation. Why?
I think the inflationary pressures have been held down by the deflation in the housing market. As the Fed prints money, dollars are disappearing just as quickly as housing prices continue their decline.
Once the housing market reaches its low point and the decline in prices ends,k inflation will become a real problem. What to do? In the past hard assets have been where the smart money goes during inflationary periods. Gold, art,
silver, and even housing are shelters from inflation.
When will housing prices level off and even start rising again? There are so many factors involved in this that not even the housing experts are daring to make a guess.