However, I believe we are running to the end of that cycle. I do not see housing being the culprit on the upcoming inflation, but, we will see our cost of goods start to soar as imports become less affordable and surviving corporations become desperate for profits. I believe the demand will still be there, but the ability to pay for the supplies will wane. End result is a lower standard of living for most here. Luxury goods that were within reach, will be nothing more then a fantasy for most.

Stocks go up, but that is certainly because of government intervention via a variety of techniques, including zero interest loans from the FED, the efforts of the plunge protection team, and outright manipulation of economic data.

The population demographics of the U.S. and our precarious nonexistent energy policy along with our bubble economy leave us vulnerable to a succession of economic problems that will preclude digging ourselves out of this hole in the next decade.

Preservation of capital should be our first and foremost goal, accumulating more capital will be difficult and should be approached conservatively – this bear can bite at a moments notice.