John Williams – Massive Selling of US Currency Lies Ahead With A Hyperinflation Depression

Posted: December 16, 2010 in Financial Survival

John Williams from is predicting a hyperinflation depression possibly within months.  This is an extremely aggressive prediction however his past predictions have been impressive.  John believes rising inflation will become increasingly broad in early 2011 reflecting a serious problem.  Here is an interesting quote from John regarding the hyperinflation in Zimbabwe

“In the US we  don’t have a backup system. Zimbabwe had the worst hyperinflation anyone’s ever seen. But they survived, they had an ongoing economy. That was because of the black market in US dollars we don’t have a black market in the US. There’s no backup to our system.”

Think about this quote.  If the US sees hyperinflation I believe at some point there will be a “black market” that will likely trade with sound money.  Remember a currency does not need to be worthless paper.  A currency can be anything a merchant accepts for his goods.  The poor man’s gold known as silver will likely play a major role in this type of environment.  Of course other products that could be bartered would play a role. 

I know to many of you this sounds insane.   Ten years ago I would have agreed, this is nuts.  Times are changing, this experiment of fiat currency backed by nothing is only about forty years old.  It is amazing that in forty years we as a society have forgotten about sound money.  Sound money is not fiat currencies backed by nothing, it is gold and silver.  Keep in mind hyperinflation is a confidence issue.  When people in the US realize their dollars are not worth the paper it is printed on, it is over. 

The price of gold and silver in the  future will blow your mind.  If we have an all out currency collapse with hyperinflation there may not be a price as no one will want US Dollars.  There was a point in the Weimar Republic where people would burn their currency to stay warm and with 25 ounces of gold you could buy an entire block.

Listen I know this seems extreme but we need to be prepared with something that seemed impossible five or ten years ago.  The financial crisis did not disappear.  The debts have not disappeared.  The $1.5 quadrillion derivative nuclear bomb has not disappeared. 

 I am becoming more aggressive with this topic because I believe a major currency crisis is a very real possibility next year.  We can prepare and we can come out ahead.  These are the areas that should do well.

1. Sound money – Physical Gold and Silver

2. Energy

3. Agriculture -Agriculture may outperform gold and silver.  People need to eat.

These areas should thrive in this environment.

  1. Mark Herpel says:

    We couldn’t agree more. Protect yourself, protect your family for the long haul. Familiarize yourself with LETS local trading systems, time banks and local currency options. Learn about digital currency and digital gold currency and don’t be surprised at what may happen….

    Mark Herpel

  2. […] oil.  I would not be shocked to see oil at $150 in 10 to 12 months.  The dollar will continue to fall, we have not built a refinery since the 1970′ s and […]

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