Is now a better time than ever to invest outside the US or commodities?

SirCrashton answered one month ago …

Neither political party favors any comprehensive tax increases. A crisis in confidence will force the government to borrow money at higher interest rates. Additionally, there is speculation that the Fed may soon cut lending interest rates as much as 75 basis points.The crushing interest payments on the national debt, anticipated increase in demand for Fed funds at a lower rate, as well as the massive financial liability under the Emergency Economic Stabilization Act (bailout), alternatively, must be met by the Fed increasing the money supply; the textbook definition of inflation.

The dollar has experienced a temporary reprieve against foreign currencies only because the European central banks are beginning to feel the damaging effects of loose monetary policy.

The global financial mess must first stabilize in order to overcome the short-term trend of falling commodity prices caused by corporations and consumers cutting expenses, i.e., reduced demand. Therefore, right now may not be the most opportune time to invest in commodities.

However, given the inevitability of inflation, the weak dollar, and the long-term trend of increasing demand vs. decreasing resources I believe that commodities will soar in value within the next 18 months and beyond.