Could the Weimar Hyperinflation Happen Again in America?

[montmorencyt2w]

My son sent me this link. Of particular interest to those of a historical leaning:

Could the Weimar Hyperinflation Happen Again in America? :: The Market Oracle :: Financial Markets Analysis & Forecasting Free Website

 

[George Soreass]

My son sent me this link. Of particular interest to those of a historical leaning:

Could the Weimar Hyperinflation Happen Again in America? :: The Market Oracle :: Financial Markets Analysis & Forecasting Free Website

Well this is why gold is held up so highly right now.... I don't rule the possibility out - yet I have only 2% of my assets in gold, 98% is in cash, I don't even own property despite having enough cash to pay for one - it's a troubling prospect

 

[WallStreetHero]

the saying right now is that we are going towards it.

one of the best investors and economists marc faber is talking about zimbabwe style hyperinflation coming.
while other great economists who have had the pridictions bang on like jim rogers and peter schiff allready warned about hyperinflation few years ago.

 

[Martinghoul]

Anything is possible, including Weimar Republic hyperinflation...

 

[WallStreetHero]

hyperinflation right now is inevitable due to huge devaluation of the currencies in last few years and the big crash is yet to come, but only time will tell if its weimar type, zimbabwe type, or even worse but one thing is for sure, things are looking terrible ahead we may go through one of the worst times ever in the next few years.

 

[tripleogstar]

I don't believe there will be hyperinflation at all. I think there is a possibilty that inflation will overshoot central bank targets slightly, but no way will you see 'hyperinflation'. One thing you need to remember is that 75% of GDP is from consumer spending, which is subdued as unemployment is so high. You also have to consider that the british/american public are likely to have learnt a lesson from this crisis, and that lesson is the control of spending. To save money and to spend more cautiously. I think this will be a lesson that will stay with consumers for at least the next 3-5yrs. Hence, keeping inflation under control. It will be a similar time frame before wage inflation starts creaping up.
Then you come to the point of quantitative easing. Central banks have pumped money into the banking sector, however, there has not been a significant increasing in lending to the public. Even more so, people are reluctant to borrow money from the bank. So the money stays in the banks capital reserves. Not actually reaching consumers, but when it does, it will slowly seap into the system, keeping inflation under control.

 

[tripleogstar]

I think the biggest issue will not be hyperinflation but the budget deficit of the british and american government. That will also be a drag on inflation as governments' realise that they have to cut public spending to reduce their deficit.

 

[N Rothschild]

no no and no again

 

[arabianights]

Of course it could. Why couldn't it?

 

[N Rothschild]

coz i said so

 

[arabianights]

ah, fair enough. sorry.

 

[N Rothschild]

apology accepted

 

[N Rothschild]

Ssssshhh.... Its D-D-D-D-.... - The Market Ticker

 

[Stewenson133]

leverage is dead, money velocity is dead. wait for they to resuscitate and you'll have inflation, may be not hyper. imo.

 

[squall321]

devastating deep deflationary death dance due.

 

[poborsky]

I believe that hyperinflation is a near certainty in the UK and USA. Massive trade and budget deficits and falling tax revenues make it very difficult to pay debts back with anything but devalued currency. Both countries have been purchasing their own govt bonds to keep interest rates artificially low and create a market for the debt. In other words electronically printing money. This is Zimbabwe style economics. The debt to gdp figures that are used disguise the fact that the economic activity is being created not by useful productivity, but by borrowing and printing more money used to bail out bankrupt institutions and companies. Deflation will be a short term symptom of this crisis, followed by currency collapse and runaway inflation.

 

[arabianights]

fwiw poborsky, I agree

I also think that it will be extraordinarily quick and catch us all off guard.

 

[N Rothschild]

I believe that hyperinflation is a near certainty in the UK and USA. Massive trade and budget deficits and falling tax revenues make it very difficult to pay debts back with anything but devalued currency. Both countries have been purchasing their own govt bonds to keep interest rates artificially low and create a market for the debt. In other words electronically printing money. This is Zimbabwe style economics. The debt to gdp figures that are used disguise the fact that the economic activity is being created not by useful productivity, but by borrowing and printing more money used to bail out bankrupt institutions and companies. Deflation will be a short term symptom of this crisis, followed by currency collapse and runaway inflation.

i think some of you underestimate the era of inflation and credit creation that has come to an end..the fed buying government notes is just a small aprt of money creation..

 

[N Rothschild]

for one, if such mega hyper world destorying inflation is coming, why is gold not even trading above last years highs?

imo the entire fiat monetary system is slowly failing..

 

[squall321]

why do gold dealers advertize on the all conspiracy radio shows/websites

if they were so sure hyperinflation was coming it makes no sense to swap their gold, for joe tinfoilhat's worthless paper money

instead of making 20-30% on each ounce (whatever their profit margin is, i don't know) which will be destroyed by the h.i anyway
they could just sit on all their gold and make a 200-300% or MORE return when the hyperinflation comes

the dealers couldn't be swindling joe public could they :O