US vs Weimar Republic. Will the USA see Hyperinflation?

Posted: July 10, 2010 in Financial Survival, Markets

Helicopter Ben is determined to create inflation.  Inflation is the hidden tax governments use without an actual “tax increase”.  As most of us can see there are also deflation threats in our economy.  So what will happen to this disaster of an economy?  Well that is the million dollar question.  I suspect for the time being we will continue to see deflation in items such as homes, cars, consumer goods, stocks etc.  However, for goods we need food, energy etc. we will see inflation and ultimately hyperinflation.  We are already seeing US food inflation spiraling out of control with vegetables up 56.1%, fruit up 28.8% and eggs up 33.6%.  Inflation is here! 

Hyperinflation is a currency event not an economic event.  Hyperinflation is a currency event described as loosing confidence in a currency.  Do you have confidence in the dollar?  Does the world have confidence in the dollar?  Unless you live under a rock you are aware that many countries along with the United Nations and IMF are openly discussing moving away from the dollar as a reserve currency. 

My guess is the next financial disaster which could happen any time, people will flock to hard assets like gold and silver not to the US Dollar.  Listen to this great interview by James Turk comparing Weimar Republic to USA.

  1. […] (for obvious reasons) and particularly notes the velocity of money dynamic seen during the WeimarWeimar Republic – Jim Rickards provides some, as usual, very astute observations, in calling Bullard "Son of […]

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