Be Very Afraid: the looming threat of hyperinflation

by Harris Sherline, CPA

EXCERPT
The scene is being set for hyperinflation, with panic efforts to “stimulate” the economy and “save” financial institutions and industries that are considered too big or too important to fail. Obama’s plans to spend upwards of another trillion dollars on a second “stimulus package” and as much as an additional trillion dollars for new programs (as yet undefined) will soon cause inflation to begin anew. It’s difficult to predict exactly when hyperinflation is likely to occur, but unless we stop creating fiat money and borrowing as if there is no tomorrow, it’s sure to happen.

If and when the Chinese, the Japanese, and the oil rich Arabs decide that it’s no longer safe to hold their wealth in American dollars and start selling U.S. bonds, there will be a sudden drop in the value of our currency with a corresponding increase in inflation.

The American public seems to instinctively understand that what’s going on is wrong, but the economically ignorant, bone-headed politicians who are in charge simply don’t get it.

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5 Responses to Be Very Afraid: the looming threat of hyperinflation

  1. andeeroo says:

    But what will plastic surgeons do for a bailout?

    Discover why Boob jobs and the economy are sagging together:
    andeeroo.wordpress.com

  2. stimulus says:

    I’ve been telling people for a while, that the value of the dollar and the price we see here in America is tied to how the dollar trades vs other currencies.

    take a look at the $4/gallon gas last summer. the US dollar was trading very poorly against everything in the world, as a result, gas was costly. the worlds economies began to slide thanks to our credit sub prime problems, and we stayed the same, but since now the dollar was trading better against them, gas got cheaper. its a miracle, it makes it look like the Government knows what it is doing.

    Once we hit the tipping point with all this new money we are printing, the US dollar is going to fall, and fall hard. everything will cost more, and we’ll be wishing gas was ONLY $4/gallon.

  3. Editor says:

    This week we are seeing the first indications that European politicians are starting to comment on the exploding national debts in public. But Mr. Obama is not there yet. It is time for our political leaders to start explaining us where they see the exit.

    Or, as the FT puts it: “To calm investors’ nerves, finance ministers must make plain how they intend to keep paying creditors without resorting to debasing their currencies. Those who have not already credibly done so are living on borrowed time.”

    I’ve read some interesting related articles on Crunchreport.com.

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