Category: HyperInflation
The analysis published under this category are as follows.Monday, November 28, 2011
John Williams Hyperinflation Warning, Preserve Wealth Value with Gold / Commodities / HyperInflation
Among the specters lurking in ShadowStats.com's Editor John Williams' gloomy outlook for the U.S. are the demise of the dollar, hyperinflation and the ongoing lack of political will to take sound corrective measures. Still, as he tells The Gold Report in this exclusive interview, investors have options. Williams contends that turning to gold, silver and strong foreign currencies would protect wealth and position savvy investors to take advantage of extraordinary opportunities likely to flow out of the turmoil ahead.
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Sunday, October 16, 2011
Hyperinflation, Can It Happen Here? / Economics / HyperInflation
"Bankruptcies of governments have, on the whole, done less harm to mankind than their ability to raise loans." - R.H. Tawney, Religion and the Rise of Capitalism, 1926
"By a continuing process of inflation, government can confiscate, secretly and unobserved, an important part of the wealth of their citizens. - John Maynard Keynes, Economic Consequences of Peace
"Unemployed men took one or two rucksacks and went from peasant to peasant. They even took the train to favorable locations to get foodstuffs illegally which they sold afterwards in the town at three or fourfold the prices they had paid themselves. First the peasants were happy about the great amount of paper money which rained into their houses for their eggs and butter… However, when they came to town with their full briefcases to buy goods, they discovered to their chagrin that, whereas they had only asked for a fivefold price for their produce, the prices for scythe, hammer and cauldron, which they wanted to buy, had risen by a factor of 50." - Stefan Zweig, The World of Yesterday, 1944.
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Sunday, October 09, 2011
Warning U.S. HyperInflation Ahead / Economics / HyperInflation
Money Supply M2 has expanded at Warp-9 within the past few months, based on Federal Reserve Data released on Sep.30th. In fact, the ratio of M2 to M1 has set a World Record, exponentially growing to over 5:1 (M2 is near $9.6 Trillion, over 12% growth this year so far, projected to show 15% growth in one year, while M1 has remained constant near $2 Trillion.)
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Wednesday, September 21, 2011
The Case for Hyperinflation in the US / Economics / HyperInflation
Earlier this month, Gary North penned an article on LewRockwell.com entitled, "Mass Inflation, Yes; Hyperinflation, No".
In it he stated the following:
"The United States is not going to get hyperinflation unless Congress nationalizes the Federal Reserve System.
It will get mass inflation at some point: anywhere from 15% per annum to 30%. But it is not going to get 50% or 100% or more.
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Sunday, September 11, 2011
Despite multiple QEs, why the US is yet to be hit by hyperinflation? / Economics / HyperInflation
Inflation is defined as ‘too much money chasing after too few goods’. But how about hyperinflation, how do we know whether an economy is experiencing hyperinflation?
Hyperinflation, normally caused by excessive growth of the money supply, usually through the policies of the central banks to print excessively to meet deficits spending.
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Saturday, September 10, 2011
Ron Paul Has Saved Us From Hyperinflation / Economics / HyperInflation
The United States is not going to get hyperinflation unless Congress nationalizes the Federal Reserve System.
It will get mass inflation at some point: anywhere from 15% per annum to 30%. But it is not going to get 50% or 100% or more.
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Thursday, May 26, 2011
Hyperinflation Nonsense Continues / Economics / HyperInflation
Every time the US dollar ticks lower, commodity prices tick higher, or the CPI rises two tenths of a percent, hyperinflationists come out of the woodwork with nonsensical predictions and silly comparisons to Zimbabwe or Weimar Germany.
Given that the US dollar recently fell to the lower end of its trading range, hyperinflationists once again came forth with their message of impending doom.
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Friday, May 06, 2011
What Hyperinflation Looks Like / Economics / HyperInflation
Sweeping up pengő banknotes. Hungary, 1946.
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Tuesday, May 03, 2011
Hyperinflation and Double-Dip Recession Ahead / Economics / HyperInflation
Economic recovery? What economic recovery? Contrary to popular media reports, government economic reporting specialist and ShadowStats Editor John Williams reads between the government-economic-data lines. "The U.S. is really in the worst condition of any major economy or country in the world," he says. In this exclusive interview with The Gold Report, John concludes the nation is in the midst of a multiple-dip recession and headed for hyperinflation.
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Thursday, April 28, 2011
Rick Ackerman Abandons 30 Years of Deflation Mantra, Defecting to Hyperinflation Camp / Economics / HyperInflation
Every once in a while, some famous defender of a position switches without warning to the rival position. A famous atheist becomes a believer in God (Antony Flew). A famous Protestant becomes a Catholic (Richard John Neuhaus). A famous Chicago School economist becomes a Keynesian (Richard Posner). These events are unexpected, especially by the people who make the switch. When it happens, the former disciples are left high and dry.
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Wednesday, April 27, 2011
Can We Give The Hyperinflation Thing a Rest? / Economics / HyperInflation
The Federal Reserve is not going to push the economy into Zimbabwean hyperinflation. That's pure bunkum. The Fed's plan is to weaken the dollar to boost exports and to force China to let its currency appreciate to its fair-market value. The policy should help to lower the US's bulging current account deficit. By purchasing $600 billion in US Treasuries (QE2), the Fed effectively reduces the supply of risk-free assets, which sends investors into riskier assets like stocks and commodities. Is there an element of class warfare in the policy?
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Thursday, March 24, 2011
Weimer Hyperinflation Angst and the United States Today / Economics / HyperInflation
When Money Dies: The Nightmare of the Weimer Hyperinflation, by Adam Fergusson, was published in 1975 and became a best-seller in 2010. Federal Reserve Chairman Ben S. Bernanke's claim that "inflation expectations are contained" is refuted (once again) by this 35-year, dust-gathering incident, unless the public took a sudden interest in multiplying millions, billions, and trillions - a "delirium of milliards" - the phrase of soon-to-be-assassinated Weimer government minister Walter Rathanau.
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Monday, March 07, 2011
Hyperinflationary Deluge Is Imminent / Economics / HyperInflation
Tyler Durden writes: A deluge of an unprecedented magnitude is both inevitable and imminent. The consequences of the economic and political mismanagement will have a devastating impact on the world for a very long time. And the consequences will touch most corners of the world in so many different areas; economic, financial, social, political and geopolitical. The adjustment that the world will undergo in the next decade or longer, will be of such colossal magnitude that life will be very different for coming generations compared to the current social, financial and moral decadence. But history always gives us lessons and the one that is coming will be necessary and eventually good for the world. But the transition and adjustment will be extremely traumatic for most of us.
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Wednesday, February 16, 2011
America Poised for a Hyperinflationary Event? / Economics / HyperInflation
It is a long standing proposition of many, supported on both theoretical and historical grounds, that one of the surest roads to hyperinflation is one grounded in a government whose answer to every economic and social problem is to borrow and spend the problem away, supported by a central bank able, willing and ready to finance the effort. That support is of course to simply print the money through which to buy the debt so issued by the government – what is euphemistically called monetizing the debt – thereby exploding the supply of money and eventually trashing its value.
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Tuesday, February 01, 2011
Dismantling John Williams’ Hyperinflation Predictions / Economics / HyperInflation
If you look around on the various gold bug web sites, you are likely to see the same crowd posting the same lines of hyperinflation and everything else they can conjure up in order to scare people into loading up on excessive amounts of physical gold. Note the emphasis on “physical gold” rather than gold ETFs.
Never mind that gold has very little utility. Never mind that physical gold is not considered a liquid asset. Never mind that gold hacks are financially tied into rising gold prices and therefore have a financial interest in pumping up the price of gold. You should buy gold and hold it because it’s going to continue to rise in price as the end of the dollar nears, right? Not so fast.
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Tuesday, January 11, 2011
John Williams Eyes Gold as Insurance Against Hyper Inflation Armageddon / Economics / HyperInflation
Stronger corporate balance sheets, tighter reins on costs and better stock performance in 2010 haven't swayed ShadowStats Editor John Williams' assertion that the bottom-bouncing economy is weaker than ever, with specters of hyperinflation and systemic financial collapse on the not-so-distant horizon. As he says in this exclusive Gold Report interview, the yellow metal is his "insurance against Armageddon"—or at least the single best asset that people can use to ride out the storm.
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Tuesday, December 28, 2010
Hyperinflation, Never Say Never / Economics / HyperInflation
In reviewing the charts from the Chart Room over the weekend I came to the conclusion that in terms of timing the markets you don’t want to think in terms of price right now, but in terms of time, where again, we are not looking for a blow-off top in the present intermediate move until sometime in the first quarter next year, with early February the favored target from both historical and cyclical perspectives. How did I come to this conclusion? Answer: As you will see in the charts below, several breakouts and trend blow-offs are in the process of tracing out, meaning more time is needed for this to occur no matter how overbought technical conditions in the market are at this time. And while it’s true that everything from stocks to commodities are intermediate degree overbought, what this means is conditions will become even more overbought, and as a result, it’s possible hyperinflationary conditions in the US could at a minimum be tested.
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Saturday, December 11, 2010
John Williams of ShadowStats Warns Hyperinflation Will Start in the Next Couple Months! / Economics / HyperInflation
John Williams of Shadowstats has repeatedly warned that our economy is not doing as well as some would have you believe. From unemployment to GDP to current and future liabilities, there are fundamental problems that will not be resolved anytime soon - in fact, they’re likely to get worse.
The end result according to Williams?
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Wednesday, December 08, 2010
Fed’s QE2 Ponzi Scheme Sets HyperInflation Trend in Motion / Economics / HyperInflation
In a taped interview with CBS’ “60 Minutes” that aired on December 5th, Federal Reserve chief Ben “Bubbles” Bernanke tried to brainwash the American public, into believing that “Quantitative Easing” (QE), is absolutely necessary in order to prevent further losses of jobs, and tried to assure his listeners that he has the skills to keep inflation under control. The US-jobless rate would have risen far higher, “something like it was in the Depression, at 25%,” -- had the Fed not provided tens of trillions in loans to Wall Street banks and other financial companies, he said.
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Thursday, December 02, 2010
Is Quantitative Easing (QE2) the Road to Zimbabwe Style Hyperinflation? / Economics / HyperInflation
Unlike Zimbabwe, the U.S. can easily get the currency it needs without being beholden to anyone. But wouldn't that dilute the value of the currency? No.
A month ago, the bond vigilantes were screaming that the Fed’s QE2 would be the first step on the road to Zimbabwe-style hundred trillion dollar notes. Zimbabwe (the former Southern Rhodesia) is the poster example of what can go wrong when a government pays its bills by printing money. Zimbabwe’s economy collapsed in 2008, when its currency hyperinflated to the point that it was trading with the U.S. dollar at an exchange rate of 10 trillion to 1. On November 29, Cullen Roche wrote in the Pragmatic Capitalist:
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