T Nation

I Know You Won't Like This...

Its coming. With mathematical certitude, its coming.

"Even with the governmentâ??s spending, debt and obligations running far beyond the ability of the government to cover with taxes or the political willingness of the government to cut entitlement spending, the inevitable inflationary collapse, based solely on these funding needs, possibly could have been pushed well into the next decade. Yet, the printing presses already are running, and the Fed is working actively to debase the U.S. dollar. Actions already taken to contain the systemic solvency crisis and to stimulate the economy, plus the ongoing devastating impact of a severe economic contraction on tax revenues, have set the stage for a much earlier crisis. Risks are high for the hyperinflation beginning to break in the year ahead; it likely cannot be avoided beyond 2014.

It is this environment of rapid fiscal deterioration and related massive funding needs, the U.S. dollar remains open to a rapid and massive decline and to the dumping of U.S. Treasuries. The Federal Reserve would be forced to monetize significant sums of Treasury debt, triggering the early phases of a monetary inflation. Under such circumstance multi-trillion dollar deficits rapidly would feed into a vicious, self-feeding cycle of currency debasement and hyperinflation."

http://www.shadowstats.com/article/hyperinflation-2010

With mathematical certitude? I call bullshit.

http://online.wsj.com/article/SB10001424052702304846504575178280738256348.html?mod=WSJ_WSJ_US_News_5

shadow stats vs. wsj? wsj ftw.

Neither the National Bureau of Economic Research
nor
Business Cycle Dating Committee
can
mend our broken wings…

Just a little poem.

(I absolutely believe that there will be big-time inflation in the coming 5 years)

[quote]archiewhittaker wrote:
Neither the National Bureau of Economic Research
nor
Business Cycle Dating Committee
can
mend our broken wings…

Just a little poem.

(I absolutely believe that there will be big-time inflation in the coming 5 years)[/quote]

It will be much much shorter then that. By the end of obama’s term we will have hyperinflation(if the correct actions are not taken in November I doubt we will get enough good guys in there).

[quote]thefederalist wrote:
With mathematical certitude? I call bullshit.

http://online.wsj.com/article/SB10001424052702304846504575178280738256348.html?mod=WSJ_WSJ_US_News_5

shadow stats vs. wsj? wsj ftw.[/quote]

The reason it is a mathematical certitude is irrelevant of source. If interest rates are zero, what happens to our economy when they rise?

We are past the point of ever even significantly reducing our debt (it may blip downward once in a while) and getting to the point where we have to borrow just to pay the interest. When that happens, which the health care bill guaranteed to happen all the sooner, lenders will shy away from us. The only recourse then is to print money and raise interest rates.

This will lead to chaos as inflation accelerates and interest rates rise even more. And just like with the Zimbabwe Dollar (ZIM) in the pic above, you just might use the US Dollar to wipe your ass (like the Fed has done).

I hope you guys are wrong. Can I see the future? No, but I can see why both sides think the way they do. Can I see inflation, 8-10%, coming sure can, but hyperinflation, grater than 20%, might be a far stretch.

Fed,

Spending your way out of debt doesn’t work. Neither does spending your way to wealth.