What do you think? "Prepare For The Hyperinflationary Great Depression"
zerohedge.com
zerohedge.com
What does he think the US Dollar is going to be debased in comparison to? The Euro? Europe has pretty severe structural problems of its own, and Britain is both tiny and worse off again. Russia and Japan are stable but rather moribund, and while Brazil is a bright star int he world economy these days it's tin in comparison to the US economy. Which leaves the Yuan, and China is going to leave its currency pegged to the dollar for as long as they feel like it, both because it keeps the trade balance stable and because they have no intention of letting us inflate away our debt.
Oh yeah. Gold. Riiiiiight. Look, we still have tremendous amounts of wealth in the US, though you might not feel that way if you're in Detroit or some other towns. If the Chinese ever grow anxious about having too many dollars on the books, they're not going to start demanding they be paid in gold ingots, they're going to do what the Japanese did and just come over here and start buying blocks of Manhattan or Downtown LA or whatever prime real estate they can pick up for a song (which will be most of it, in the next year or two - commercial RE is in a slump of its own).
Hyperinflation makes no sense for the US because there is no harder currency that can easily displace the dollar, and there are vast numbers of valuable assets which are most easily purchased in dollars here in the US as far as our external creditors are concerned. Internally our debt-to-GDP ratio is rising but not that bad in context, and the administration has already expressed interest in deficit reduction so it's not like they're oblivious to the issue (unlike the previous administration with their proclamations that 'deficits don't matter').
I think that it is impossible to predict when this will occur and whether it will be rapid (hope not!) or gradual (my hope).
Both W. Bush and Obama spent way too much money on credit. If you as an individual are going to to buy a car for $20K and pay for it over a 5 year period, you should not say "this car cost me $20K," rather, it is really more accurate to say "this car is costing me about $28K with interest." It would be nice, but unexpected, if instead of the government saying "we are going to spend $500 billion on defense this year" they would be more honest and say "defense spending this year, including interest on the money spent, is estimated to be between $1 trillion and $1.5 trillion."
Doesn't that sound a bit more honest?
The country might break apart. The sign is, when the Mexicans seize California, as they have been saying they will do for a while, America is through.
And when I say Mexicans, I don't mean the ones in Mexico - I mean the ones in the USA illegally right now.
The price of oil will go through the ceiling - in terms of USD - and America will stop.
Then - there's gonna be a war.
Not one of the TV wars like Vietnam, but one of those everyone-is-invited wars like WWII. After that, who knows whats gonna happen.
History will record three 'Inexplicable American Madnesses' that caused all this.
1 - The USA removed it's trade barriers to China thereby destroying it's own industrial base even though they knew it would happen.
2 - America bankrupted itself fighting Israel's enemies for it just when it needed everything it had to fend off the results of the first mistake.
3 - America permitted 20 million illegal immigrants into it's territory, even though they said they'd seize California - and they did.
We are living in interesting times.