Could the Weimar Hyperinflation Happen Again in America?

Better chance of seeing 50 first I think, but current production is believed to be at 95% of possible utilization. Lower oil prices mean less investment in current as well as new production. Existing fields are depleted more rapidly and new capacity lags behind.

i wonder if there is still potential for an inverted supply curve

Extreme Oil Forecasts Are "Ludicrous": Tech Ticker, Yahoo! Finance

posted this in another thread

"the fed printing up some cash is only a small part of the picture in money creation. and that money will never hit the consumer so it doesn't matter. the world is gona be busy paying down (of defaulting on debt) for the next few years which will result in massive deflation across the board, massive usd strength, falling stocks commodities etc. when so much debt is created, there is only one way to service that debt and the intrest, more debt! you cut off the supply of credit and HGUE amounts of money will be leached from the system to service that debt and intrest. hence deflation. when you create new debt you only create the amount for that debt, not the intrest to be paid as well, so without the continued creation of new credit it isnt possible to pay back all the debt AND the intrest. seeing the entire world economy and every currency in the world is based on the creation of debt"

Funny how both Pimco and Warren Buffett came out the same day with concerns over inflation. Warren Buffett's op-ed is an interesting read on the possibilities of inflation. Here's Buffett's piece http://www.nytimes.com/2009/08/19/op...=2&ref=opinion

Anybody know how much in $bn the war in Iraq & Afghanistan has cost the US???

Summary
With enactment of the FY2008 Supplemental/FY2009 Bridge Fund(H.R. 2642/P.L. 110-252) on June 30, 2008, Congress has approved a total of about $864 billion for military operations, base security, reconstruction, foreign aid, embassy costs, and veterans’ health care for the three operations initiated since the 9/11 attacks: Operation Enduring Freedom (OEF) Afghanistan and other counter terror operations; Operation Noble Eagle (ONE), providing enhanced security at military bases; and Operation Iraqi Freedom (OIF). Congress is currently considering the FY2009


http://www.fas.org/sgp/crs/natsec/RL33110.pdf


The US will remain in Iraq until 2011 and Afghan battle rages on. This begs the question where is the Pentagon - NASA and the war chest get their money from if not the senate?

Last I heard the Democrats were objecting to financing another $100bn through senate for the Iraq war. Where has all this money gone and how will the wars be financed. Alternatively where has all this money come from and how on earth did they / are they financing the damn wars???

Sweep it under the carpet no one will notice. Pass a 4 page Fed request for another $700bn through senate and call it the bank protection fund and bobs your uncle...

No transparency - no accountability - no FT - no comment. Mum's the word...


I must have been a parrot in my previous life...

1. Vietnam caused the US to move away from the gold standard.
2. Iraq war will cause the World to move away from the dollar standard.

that was bretton woods, not the actual gold standard

if anything the iraw qar insured that the $ would continue on as the worlds reserve currency, through oil

The Bretton Woods agreement set the USD as the world reserve currency with 35 dollars to 1 ounce of gold. Foreign govts, knowing that the USA were running the printing presses, started asking for payment of debts in gold. Richard Nixon suspended the gold standard in 1971, with the US embroiled in the Vietnam war. It never returned. Inflation took off, leading eventually to 20% or so interest rates in the US to bring it under some sort of control.