“Take Your Gains,” says Forbes. And once you’re out of stocks, stay out until the bear market is over…probably at around 3,000 – 5,000 on the Dow. When the price of gold equal the price of the Dow, it will be time to switch.

There is never a smooth and orderly increase in prices for every business in the economy and small businesses often suffer the most. If you have big suppliers and/or customers they can tie your hands. Your costs go up, but you are unable to pass along these costs with higher prices. One of the added costs we now have to worry about is increased taxes. This is a real cost to entrepreneurs and cannot be ignored as a part of inflationary costs.

While it is true that the implied inflation has been climbing since it almost hit zero last year, it is not at levels that suggest inflation is going to skyrocket. This means that the Fed should be far more concerned about getting the economy moving again. Any move to tighten up monetary policy by raising interest rates would be a serious mistake.

MERLE HAZARD, an unusually satirical country and western crooner, has captured monetary confusion better than anyone else. “Inflation or deflation,” he warbles, “tell me if you can: will we become Zimbabwe or will we be Japan?”

The government's increased intervention in the economy is likely to slow down economic growth because history shows that every time the private sector shrinks to make way for the government sector, the economy suffers, he said.