Think Hyperinflation Ain't Comin'?, Think Again!

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Think Hyperinflation Ain't Comin'?, Think Again!

Post by Admin on Fri Aug 05, 2011 9:26 am

“Well, very simply I have very little respect for a political system that goes to the brink each time the debt has to be raised. They have to raise the debt ceiling because the government already is obligated to spend the money beyond what it can raise in taxes. I would be very surprised if the US actually defaults.

What they are doing now is the type of thing that has happened a number of times before, although there seems to be more of a serious challenge this time around and risk of an outright default on the US debt. This would be disastrous for the financial system. Indeed it likely would trigger very heavy selling of the US dollar, which would accelerate the inflation process and move us towards the hyperinflation scenario.”

“One of the best bets I can give you over time is that the dollar is going to be much weaker than it is today, and you eventually are heading for a dollar collapse. It’s just a matter of when someone very major moves to get out of the dollar, and we already are seeing signs of that happening.

I’m looking for the dollar to collapse in terms of its purchasing power. For people who live in a dollar-denominated world, they need to look at taking some action to preserve their wealth and assets. This primarily involves holding some physical gold and silver and getting some money outside of the dollar, perhaps outside of the United States.

Things can be difficult enough here with a real hyperinflation that you want to be prepared for disruptions to the system. Have a store of basic goods and supplies as you would for any natural disaster, only in this case we are looking at a man-made disaster."



Source/More Here.


Debt level brinkmanship is just showmanship. They HAVE to raise the debt limit because the money has already effectively been spent. The minute they don't raise the debt limit is the minute that people lose faith in our government which is the real basis of hyperinflation.

The cuts being bandied about by congress and the president are for show only. They want to cut 4-5 trillion over ten years, and if you look at the details it is quite back end loaded. So on an annual basis we are only looking at cutting the deficit by 10%. This says nothing about the existing debt at all. It just promises to get us far deeper into debt at a slightly slower pace. I am 100% sure that when it comes time to make the big cuts the pain of it will be so great that they will find some other way to avoid making them. If they fail to do this, the scam will collapse and the con men will have to find real jobs. They do not want to do this as they now have no economically valuable skills. BS artists are not in short supply for industry today and it will be even less so going forward.
The greatest threat of hyperinflation is not triggered by infinite money printing but rather by events which cause loss of credibility of the government. Keep in mind that fiat currency is already worthless. The only thing that stands between it and actual widespread acknowledgement of its worthlessness is some trigger that causes loss of faith. Debt default could easily be that trigger. If you see rapidly rising interest rates on government debt then you know we are making progress toward the hyperinflation state.
No cure has been put in place over the past few years. All that has happened has been a temporary papering over of the problems with more debt, more currency debasement (as in the tripling of the monetary base over the past 3+ years in order to combat deflation) and of course my personal favorite con man tactic which is the suspension of the rule of economic law. The con men like to refer to this as "regulatory forbearance" but in plain terms it just means changing the rules whenever following the rules would threaten the power structure of the ruling elite. Since nothing has been fixed, the problems will come back to haunt us and we will see even worse turbulence over the long run than we would have seen if government had just allowed the free market to clear up the excesses instead of working as hard as it could to prop up the excesses.

Government borrowing is nothing more than theft from the future. It is spending tomorrow's money today, the wealth of tomorrow's people on today's people. It is a total scam.

Greenspan was the primary architect of the debt bubble. He told everyone that real growth could be achieved by taking on debt. He lied to us all. Debt is to the economy like nitrous oxide is to an engine. It causes a short lived increase in power output but if you keep pouring on the debt or the nitrous, the engine of the economy or of the car will eventually explode. The problem with short lived power boosts is that they are addictive whether it be in an economy or in a car. Greenspan told us that debt didn't matter and that debt was good and proper. Greenspan was (and remains) a traitor not only to the US but to all citizens of the world. He thinks he got away with it. I think it will come back to haunt him as everyone else figures out what I have known for years: Greenspan is a criminal.

The solution? Get out of the dollar and into gold and silver. Williams makes it sound like you should make this move rapidly but I think that it should be done over time. Put retirement savings into physical metal that you have physical possession of instead of dumping your long term savings into government controlled accounts like IRA/401k. When you put money into government controlled accounts, they have possession of it, not you. At some point in the con, possession will become 9/10ths of the law. Count on it.
Source/More Here.

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