One factor that goes along with an increase in the money supply to cause inflation is something called the "velocity" of the money supply, which is to say how quickly people spend that increase. If you have reason to believe that your 401k money is going to be worth vastly less, in real terms, in the future, you have every economic incentive to cash it in, pay taxes and penalties, and buy SOMETHING that will retain its value in the future. Krugerands, real estate (if you can pay cash, or can find a lender), Registered Magnums, fine artworks (but I repeat myself). There's also been some squeaking by the Chinese, who hold well over a trilliion of our debt, about their concern that we might monetize the debt.
There was an article by a doom-'n-gloom economist on Bloomberg earlier this week that was predicting "Zimbabwean" inflation here within a few years. As for myself, I don't think we could sustain low double-digit inflation for long. I think the flood of money exiting other markets and seeking assets, goods, whatever, in this country would quickly blow by the double-digit stage.
Trade goods, durable goods, non-perishable food, precious metals. Like the Shakespearean "wars and lechery", these hold fashion.
