[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

John 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]

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?

Have you tried taking government out of the equation?

If the government is not creating its own money but instead borrowing it from a banking cartel where exactly does that place the government over time? It is safe to say and actually obvious now to anyone with their eyes open that the highest levels of the government treasury have been infiltrated by the banking cartel for a very long time now. It is a revolving door so there is really no need to seperate them like different entities. It changes the picture rather drastically if this is the case don't ya' think?

Don't you find it odd that planet earth is 50 trillion or so in debt? Who exactly is owed this massive debt? Saturn?

It appears the central banks of planet earth completely control the economy of planet earth by controlling the amount of currency in circulation. Their stated goal is to maintain a stable economy however a few hundred years of history has proven quite the opposite.

Mathematically there will need to be debt forgivness on a massive scale soon since the principle is being consumed by the interest, the only trick is to convince the masses to have this debt transferred to a new carbon based economy they are busy building - sure to arrive just in time to save planet earth from itself.

[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:

In 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.

That's what it comes down to, folks. There is no recovery. All the government has done is to buy a couple years prep time -- time for the rich to get richer and position themselves for the coming storm.

I've thought this for a long time, that hyperinflation is the endgame to get around the looming entitlement insolvency.

[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]

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)

Read the SGS. Not gonna happen.

And Lutz Tavern isn't the only place seeing a boost for the blue-ribbon brand. The beer is up almost 30% in dollar sales in the U.S. for the 52 weeks through October at retailers like supermarkets and drug stores, beating out the beer category's overall 1.1% increase, according to market-research firm Information Resources. Meanwhile, Budweiser and Corona Extra are down about 7% and 8%, respectively.

or this:

Inflationists and deflationists will endlessly debate whether this should be called inflation or deflation, unconsciously emulating the big-endians and little-endians of Jonathan Swifts Gulliver's Travels, who endlessly debated the proper end from which to eat a soft-boiled egg. The citizenry, their nest egg boiled down to the size of a dried pea, will not be particularly vexed by the question of exactly how they should try to eat it, and will regard the question as academic, if not idiotic.-Orlov

[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]

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????

Because the smart money is betting that gold will keep its value, and that they can convince the dummies (or the cash-deprived in this economy) to give up their gold for paper.

[mcgowanjm]

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????

Because the smart money is betting that gold will keep its value, and that they can convince the dummies (or the cash-deprived in this economy) to give up their gold for paper.

From Jesse's Crossroads:

"As a heads up, Gold often gets hit with a bear raid on FOMC day. Since the miners were hit a bit today with possible front-running that might be a good bet. Who can say in these thin markets?"

Is the US Financial Crisis Over? 1:49 PM And After the Bell...

"The COMEX gold margin requirement is going up overnight. New levels are $5403 initial per contract (the old one was $4500), and $4002 maintenance."

Change you can believe in. Vox pecuniae and all that. LOL Why raise the margin requirments now after a ten percent correction?

For 35 years I've watched Gold. Margins crush it every time.

See Bunker Hunt Silver for details.

Why, whenever there is a program for the citizens, does the budget suddenly become hysterically important?

[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.