Five Assets for Hedging Against Dollar Inflation OR Deflation

[Patchze]

I found this page, written just last week:

http://www.dividendtree.net/commentary/five-assets-for-hedging-against-dollar-inflation-or-deflation/

I'd love some people's thoughts on it.  Are index funds really still a safe bet?

[cz]

I personally don't worry that much about whether we're headed for either inflation or deflation, I've heard the arguments for both, but those are based more on *financial market* aspects, and don't take into account PO for the most part.

What scares me more than either (although it will bring massive price inflation, regardless of "money supply") is *scarcity*.  PO/PG will bring lack of fertilizer and transportation - food prices will rise as production costs increase (fertilizer/transportation) and delivery/availability becomes scarce.  Face it, if people are starving, they'll gladly pay $40 for a loaf of bread and a can of spam, right?  The breakdown of the "system" will leave all of those "investments" (other than maybe physical gold in your hands) virtually worthless.