When we have inflation, it means the value of the dollar is less. I expect this for two reasons: 1) the dollar keeps getting weaker because of our debt and 2) the government has to inflate the debt. Inflating the debt
means that the dollar and thus the debt is worth less. Deflation, in contrast, would mean that our money is worth more and the debt would be worth more.

Okay, so that's the basic logic behind thinking that inflation is the only possibility. It's well documented, I think, in Safe Strategies for Financial Freedom.

So if we have inflation, it means that things will be worth more compared with money. Here's an example, my late mother was born in 1904. She saw the early silent movies and the first sound movies that came out. She said
that she could remember when it cost 5 cents to go to the movies. Me, I'm not nearly that old, but I can remember when a hamburger was 15 cents and you could see a double feature movie for 50 cents. Now a single movie cost
$8 to $10 and you'll spend that much or more for a snack at the movies. That's inflation.

When I lived in California, I lived in a house that cost $4000 new when it was built in the 1940s. I paid $120,000 for it in 1982. When I divorced and moved away, that house was worth over $500,000 and now it's probably
close to a million. While some of that is people wanting to live in the LA area, some it is also due to inflation. Today, a house that might have cost $4000 in the 1940s will probably cost $120,000 someplace in the Midwest
like Memphis. And that's basically all inflation.

Thus, if we have say 10% inflation....your house will be worth more simple because the dollar is worth less. Everything will cost more and owning things, like commodities will be where the profit lies.