To Stagflate or Not to Stagflate?

That is the question.

Platinum is much rarer than gold. It has been through a serious correction and now trades almost at par with gold. Part of me is therefore tempted to buy platinum. This feeling hits me every few weeks, as you can imagine it must with stagflationary in my name.

January 20, 2009
Platinum Gets Set for Rebound

"In the second half, we could see an improving car industry," says Sterling Smith, vice president with Chicago brokerage FuturesOne. The metal is widely used in automobile catalytic converters.

The other part of me is tempted to think...

1. A global economic ponzi scheme was discovered and that maybe, just maybe, billions of low paid global workers won't be all driving gas guzzling cars in the coming decade.

2. A global economic ponzi scheme was discovered but we'll still try to get billions of low paid global workers in cars, only to see the world almost run out of oil yet again.

3. If we do see an improving car industry in the second half, then we could also see monkeys fly out of my bottom.

Do not discount the monkeys! The last time they appeared they had a lot to tell me. They said, and I quote...

Stagflationary Mark, you should remain a long-term stagflationist but it is okay if you want to continue to embrace deflation for a few months or even a few years while you patiently wait.

The monkeys then threw some feces at me. One does not get the expert financial opinions of flying monkeys without paying a price.

I think that deep down they were actually trying to impart two important life lessons on me. First, one must take the good with the bad. Second, toilet paper will continue to be an excellent safe store of wealth. Touché my little monkey friends, touché!