Is Hyperinflation Real?
I spend most of my day chatting online with an investor group of friends and speaking over VOIP. One of the colleagues in my little investor group scoffs at the idea of hyperinflation. He is positive that hyperinflation is a fairytale of the Brothers Grimm variety. Yet a few western countries have gone through hyperinflation, so his notion that the U.S. could never go into hyperinflation is not based on any facts. The facts are: we have overspent; congress is continually borrowing for the Fed; the Fed is flooding the U.S. with more dollars; we are reaching record deficits on all fronts month after month. This notion that the U.S. is somehow impervious to hyperinflation is ridiculous.
The real financial experts, the non-Keynesian spendaholics, agree that hyperinflation is a real and viable circumstance that is definately coming. They all predict that more spending is to come, resulting in the inevitable end of hyperinflation.
Marc Faber on Hyperinflation
Marc Faber said in a recent interview “going forward, I had some concerns, because basically the stimulus will wane, the impact will wane over time. And, sounder footing thereafter, so i think more quantities and more stimulus packages will be necessary. And, that may boost asset prices and it may lead to high inflation rates at some points. But, it may not make much difference to the typical household in the western world, who’s standard of living is going down.”
Peter Schiff on Hyperinflation
Peter Schiff recently said [we have not accepted the fact we’ve overspent] “not at all. All we’ve done is set ourselves up for a much worse economic fall than the one we had. Because, the Fed has created a currency crisis that’s coming. It might even hit in 2010, but it might hit in 2011. When the dollar collapses, and it’s not just going to go down 10%. I’m talking 50%, 60%, 70% or more in the decline of the value of the dollar. And, its going to send prices ballistic in the United States for consumer goods. It’s going to send interest rates into the stratosphere. And, if people think the economy is bad now, imagine how much worse it is when all the unemployed people, when you can’t even buy anything with your unemployment checks, because prices are so high. The worst place you can invest money, you don’t want to be in any retailers in the United States. You don’t want to be in the financials. You don’t want to be in any areas of housing. Americans are going to stop shopping. We’re broke! We’re done! Americans have to start saving. Unfortunately they’re not doing that yet, because interest rates are still too low. Eventually they are going to be a lot higher and Americans are going to start saving. That’s what you have to understand we’ve already spent too much money.”
Gerald Celente on Hyperinflation
Gerald Celente “you can’t print phantom money out of thin air, backed by nothing and producing practically nothing without destroying the economy. The devaluation will be a dollar that is 40% less.”