Wisdom from Dan Denning - I have followed his advice for 8 profitable years!

Financial’s 5 Minute Forecast posted wisdom from Dan Denning yesterday:

“A great whirlpool of uncertainty now begins to swirl over who is going to pay for what, or whether it can be paid for at all,” notes our colleague Dan Denning.

“That is not good for investors in the short term. But there IS one way in which it's useful. It's preview.

“That is, the Greek problem is also a euro problem. And the euro problem is a paper-money-backed-by-nothing problem coupled with high levels of debt. The only resolution to such a sovereign debt crisis is default or inflation. Because it does not control its own interest rates or money printing (monetary policy), the Greek government is at the mercy of the European Central Bank. And being genetically descended from Germany's Bundesbank, the ECB is not willing to print euros in order to save Greece. Default remains.

“The Federal Reserve, of course, CAN print as much as it would like. And this is why we firmly believe the resolution of America's own sovereign debt problem will be inflation. That's the investment scenario we're preparing for... a world awash in increasingly worthless paper claims on the full faith and credit of the United States government.”

Did you catch that folks? Our resolution will be helicopter money – inflation fears – they are well founded! Inflation and gold, they go hand in hand. In a portfolio, gold coins are the antidote for inflation.