Inflation cometh

Inflation cometh

On Saturday morning at the annual meeting of Berkshire Hathaway shareholders, Warren Buffett warned that the purchasing power of the dollar may fall as policymakers stretch to finance expensive rescue plans. He warned that efforts such as the Treasury's $700 billion Troubled Asset Relief Program and the $787 billion fiscal stimulus plan passed this year by Congress will have to be paid for, one way or another.

While this may seem obvious to most of us, it's not the problem of the moment so the media hasn't bothered talking about it much. As Buffett says, with political leaders showing little inclination to raise taxes, one sure way to pay for excess spending is to inflate the value of the currency. The biggest losers in a surge of inflation, he added, would include holders of bonds and other fixed-income assets. "I haven't had my taxes raised; my guess is the ultimate price will be paid by a shrinkage of the value of the dollar."

And the saga continues, is the end anywhere in sight?

Despite all this Right now is the best time to BUY and or Invest in Real Estate. Texas is one of the nation's strongest markets.

www.TexasHomesAndLoans.com and www.RealEstateMagician.net

Carlos Salinas
"Real Estate Magician"