[AlexdeLarge]

at Zero Hedge

Shadowstats' John Williams: Prepare For The Hyperinflationary Great Depression
http://www.zerohedge.com/article/shadowstats-john-williams-prepare-hyperinflationary-great-depression

$this->bbcode_second_pass_quote('', 'J')ohn Williams, who runs the popular counter government data manipulation site Shadowstats, has thrown down the gauntlet to deflationists, and in an extensive report concludes that the probability of a hyperinflationary episode in America over the next year has reached critical levels. While the debate between deflationists and (hyper)inflationists has been a long and painful one, numerous events set off in motion by the Bernanke Fed (as a direct legacy of the Greenspan multi-decade period of cheap and boundless credit) may have well cast America as the unwilling protagonist in the sequel of the failed monetary policy economic experiment better known as Zimbabwe.

[patience]

The bottom line on the 'Flation question has always, IMHO, been a matter of what the FED and the govt choose to do. The FED appears to be committed to inflating to save their bankster buddies, and the govt is incapable of spending restraint. Anybody differ with that?

Yeah, collapsing credit is deflationary, and only a fool would try to print enough money to fill that black hole. But we appear to have more than enough fools to do so.

Oh, I am sure we will get our Deflationary Depression, but I am convinced thus far that it will be AFTER the Central Banks have obliterated currencies all over the world by printing.

If that be true, then how does one cope? Nobody wants to be on the wrong side this. And it looks to me like we will get whipsawed. Dollar can go up relative to other currencies, or down, but what matters to me is what this does to the prices of commodities that I need. That will depend on what currency you hold, I think, at any particular time. Getting the timing wrong means you are just wrong, and get hurt by the movements. I have my doubts that PM's are the best answer. Ultimately, what we need is to be able to satisfy our personal needs, so my money goes in that direction.

I think this guy is right, but if we are both wrong, I still want to be protected from the outcome. CYA time.

[Revi]

I thought that this article was great. He made a good case for hyperinflation. We are sure to experience it sooner or later.

I think 2010 may prove to be a very difficult year.

I have a bill that my uncle gave me from Zimbabwe.

It is a 100 trillion dollar bill. Worth about a dollar now.

[leaflight]

decrease in demand for this or that has kept some things in prices down, its like deflation and inflation are dancing around the famous so called supply and demand.

Commodity markets, currency markets, stock markets in general, expensive metals market and supply and demand hand and hand up and down, up and downing eachother.

Here is a example when paper money is worthless, how many zimb dollars to buy a ounce of gold, and then what is someone going to do with that ounce of soft and cold gold, eat, drink ,or wear it , or use it as medicine.

Precious medicine is worth more than even precious metals

[frankthetank]

I don't know. I think in some ways you are better spending your money on any supplies, toys, tools, or food items that may come i handy. Trying to figure out what happens with currencies, deflation, inflation, reflation, masturbation is just too much for my simple mind to decode. I'll keep a years worth of property tax dollars and let Obama worry about my mortgage

[pablonite]

$this->bbcode_second_pass_quote('patience', 'T')he bottom line on the 'Flation question has always, IMHO, been a matter of what the FED and the govt choose to do. The FED appears to be committed to inflating to save their bankster buddies, and the govt is incapable of spending restraint. Anybody differ with that?

[Sixstrings]

I think I already posted about this shadowstats report like a week or two ago, titled something like "shadowstats founder says hyperinflation within 5 years."

So.. now zerohedge has just noticed it. Well anyway, his comments are a welcome addition to our understanding of what's going on.

This quote from the Zerohedge's piece sums it up:
$this->bbcode_second_pass_quote('', 'I')n other words, the economic cycle will come back with a vengeance. Having pulled America out of the abyss by the last hairs on its Rogaine infused head, the Fed and the Administration have merely purchased one-two years of excess time in which insiders can sell all their holdings (look at recent reports indicating the ratio of insider sellers to buyers) and banks can book one/two years of record bonuses before signing off.

[Revi]

In the Titanic analogy the banksters have already taken off in the lifeboats, while the poor are locked under the deck. Us middle class passengers are being served a nice lunch on the tilting deck while the band plays on.

I don't think there will be any retirement for most of us after all. If hyperinflation hits there won't be any savings left for most people. Jobs will become worthless, since our salaries won't keep up with inflation either.

It will be the sinking of the Titanic.

[Gerben]

I am one of those people that fears high inflation, but I don't expect it will lead to hyperinflation. Hyperinflation is a rare event. Most sensible governments take measures to prevent it. I expect current policies will lead to rising inflation, but that will trigger policies that will counter it. Many countries have experienced double digit inflation and managed to counter it, although at a high price. The US can also prevent hyperinflation - if they want (which I am not entirely certain of).

[rangerone314]

Hyperinflation will prevent default on debt, wipe out the national debt, and the obligations such as social security and medicaire.

So it WILL happen.

[TheDude]

So what? Those poor saps in Weimar Germany had to lug around wheelbarrows of cash, but we have the benefit of 8 decades of technology gains, and can just dump heaps of bills in the trunk of our cars.

For that matter, in this age of plastic digital credit who gives a rat's about cash? I bet the kids nowadays are as clueless about it as they are about Reagan, or TV shows like Cheers.

The font the Zimbabwe bank is using is a tip off:

[Revi]

Those local currencies may come in handy after all. A "cascadia" dollar may hold it's value better than the US fed reserve note.

At least you can trade them for a haircut or a pound of beans.

Here's another article on inflation coming soon:

http://mises.org/daily/3933

[Homesteader]

FWIW, my wife ran into a US ambassador to a small oil exporting middle eastern country the other day. The ambassador's opinion is high inflation is coming next year. He is putting some money into Persian rugs, said the returns would be better than the stock market. (no joke)

[mcgowanjm]

$this->bbcode_second_pass_quote('Homesteader', 'F')WIW, my wife ran into a US ambassador to a small oil exporting middle eastern country the other day. The ambassador's opinion is high inflation is coming next year. He is putting some money into Persian rugs, said the returns would be better than the stock market. (no joke)

[PrestonSturges]

I guess the question that's bothering me is that since gold will be king and the dollar will be worthless, then why are so many people eager to swap their gold for my soon to be worthless dollars????

[rangerone314]

$this->bbcode_second_pass_quote('PrestonSturges', 'I') guess the question that's bothering me is that since gold will be king and the dollar will be worthless, then why are so many people eager to swap their gold for my soon to be worthless dollars????

[mcgowanjm]

$this->bbcode_second_pass_quote('rangerone314', '')$this->bbcode_second_pass_quote('PrestonSturges', 'I') guess the question that's bothering me is that since gold will be king and the dollar will be worthless, then why are so many people eager to swap their gold for my soon to be worthless dollars????

[SeaGypsy]

Nobody would believe what a well crafted kilo of silver and a few hundred grams of cemi precious stones can buy (in certain parts of the world).

[Revi]

If inflation has started it's creeping slowly. Prices were up about 1/2 of one percent last month. It seems like all the things we need to buy are creeping up, while big things, like real estate are still dropping.

[patience]

Revi,

Yeah, statistics can mislead. Housing is cheaper, but how many houses do people buy? Seldom more than one apiece, where we live. But groceries, fuels, and clothing, supplies for everyday living go on and on. THAT'S what is inflating for us. A can of tuna that cost under a buck not so long ago is now $2.38 at Wally World. Many examples like that. Farm gates I bought tonight at $80 each were half that less than 2 years ago. Hardware of many sorts are all up dramatically. It depends on your shopping list.

If your sit on a hot stove and put your bare feet on a block of ice, on the AVERAGE, you're comfortable. So much for averages and statistics. Dad said that figures don't lie, but a lot of liars do the figuring.