This financially-oriented blog has focused on the Pak-ghanistan war(s) because of my belief that escalation there could lead to as much inflation at home as the guns-and-butter strategy of LBJ led to with his escalation in Viet Nam. An informative, interesting and brief post has appeared by John F. Kennedy's closest adviser, Theodore Sorenson, titled America's Next Unwinnable War. I recommend it is a good read from a variety of standpoints.
Mr. Sorenson makes the case that Afghanistan is close to being Barack Obama's equivalent of Lyndon Johnson's Viet Nam.
The U. S. historically has only had significant inflation during major wars or in the aftermath of the few losing ones, such as Viet Nam.
With the entire force of government and its creation the Fed committed to steadily destroying the real purchasing power of the dollar you have in your wallet, gold cannot lose nominal value in the very long run unless they fail miserably in that goal; but gold can be a poor investment nonetheless.
If the U. S. ramps up much further in Afghanistan, and continues to bribe/coerce Pakistan to do the same internally, look for domestic price increases to exceed expectations.
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