What is the Likelihood of Hyperinflation in 2010, 2011 or 2012? Part 3: How to Break the Cycle before Getting to Hyperinflation
The U.S. economy is just beginning to spiral out of control as each injection of new money has to be much larger than the previous.
The path we are on leads to hyperinflation and is only a few years away. We are perhaps only one or two more injections of new money away from seeing inflation that is out of control.
The round of inflation created by Bush-Greenspan created the housing bubble that pushed housing prices up by 100-200% until they started collapsing in 2006. That injection of trillions of dollars of new money pushed up the GDP for nearly eight years, creating the illusion of wealth and fooling a lot of people into spend money that they didn't really have. The bankruptcies are still being counted.
This time the Obama-Bernanke round of inflation is likely push up the GDP for a much shorter period of time and they are already claiming their policies saved the economy from a depression. Bernanke recently said that the worst U.S. recession since the Great Depression was probably over. He is crasy to say that, because he has only succeeded in creating a much larger recession down the road.
Each time that new money has been injected into the economy it has created even bigger problems down the road and this time is not going to be any different. The foreign borrowers are starting to realize that we are not going to be able to pay them back in real dollars. The dollar is sinking as noted by the prices of gold that has already been over $1200/ounce.
Link:
http://www.pennyjobs.com/pp/public/Articles.aspx?aid=480
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