Could the Weimar Hyperinflation Happen Again in America?

Spending, Spending .... Borrowing, Borrowing ... Happy Days ... !

It is very clear to anyone who is even half interested, that the USA does NOT intend to repay its debts. For starters, they do not know how to even begin, and no one is keeping account of who is getting what, and who is repaying what.

China is correct to be fearful that they are devaluing the US Dollar. Chinese refusal to participate any further in the Bond Auctions, hastening instead in their active pursuance of the B.R.I.C. group currencies to establish SDR's (Special Drawing Rights) is an ominous signal that within a few years they intend to replace the USD with the Renminbi as World Reserve Currency.

Why else do you think the Chinese are refusing to allow the Renminbi to appreciate? They have the best exporting deal on the planet, based on a solid currency, and the backing of Brazil, Russia, India and themselves. There is no reason to pander to US debt any longer than is necessary - thus the shunning of the Bond Sales.

People who think there will be no hyperinflation are delusional - still locked into pre-2007 economic thinking. The only way the USA will be able to survive when external borrowing fails, is to print up money a la Zimbabwe-style. The argument that the USA is too big to fail, and that we need the participation of the UA to continue to run the world markets is the furtive bleating of a sacrificial lamb, about to be savaged by the Eastern Bloc Cartels.

I do not have to be right about this. Under any economic plan, Hyperinflation is now inevitable. The question should instead: "How can Weimar-Style Hyperinflation be AVOIDED?"

I just have to be an observer. The USA has lost it big time. They simply have no clue ... images of a headless chook spring to mind. Unemployment still rising, and they speak of the green shoots of a recovery. I sincerely hope they are correct - but when you purchase your own bonds, and then use the cash you just printed to support the S&P 500, you create an illusion that all is well - that investors are rushing back into the markets.

Since March 2009 to September 2009, the USD has been devalued almost 13.5% - from an Index of 88.5 to 76.6 at the close this week.

Gold is rising, Silver is rising faster, and any person who is doing the wekly shopping is well aware that we do NOT have deflation of prices - we have an almost weekly INFLATION of the prices of our food.

Our petrol is almost back to the level we were paying when Crude was USD$1.46/bbl yet Crude is still priced at only USD$70/bbl.

Higher energy prices were what precipitated the defaults, as people simply had their spare $$ sucked up by the greedy Oil Cartels, and speculators and hedgies pushed the price to dizzy heights, caring little of the destruction this was causing in the world economy.

Consumers and producers alike had to endure ever-increasing energy costs, which simply fed through to the retail end, inflating all along the price chain as it went.

Few people will discuss the role of high energy prices in the collapse and the WFC, but in my mind it is a simple equation. When next oil breaks USD$110/bbl (here insert your own arbitrary figure - who really knows) we will again see a spectacular collapse, but this time, there will be rapid capitulation of many markets.

The recent painful memories of the past 2 years will rapidly return to haunt even the smallest and most optimistic investor.

If you think I'm nuts about this ... think again.

Look at this - I rest my case.

YouTube - Alan Grayson: Is Anyone Minding the Store at the Federal Reserve?
 
It will not be long until energy demand from the emerging Asian economies rises to take up the slack and then the crunch will occur. The truth is that supply can no longer be increased to keep up. The subsequent rise in energy costs will be catastrophic for western economies in particular. The game is up. There is no plan b.
 
Ingot54 said:
Higher energy prices were what precipitated the defaults, as people simply had their spare $$ sucked up by the greedy Oil Cartels, and speculators and hedgies pushed the price to dizzy heights, caring little of the destruction this was causing in the world economy.
Click to expand...
.

Speculators - like you and me, you mean? :)


I do agree with your posting however.
Unfortunately.

Alan Grayson clip: That has been posted here before, and is still painful to watch.
"We do not have the authority to audit the Federal Reserve ..." (or similar wording).
If not, then who?
If no-one, then to whom are they accountable?

Beggars belief.
 
Last edited:
" In the absence of the gold standard, there is no way to protect savings from confiscation through inflation"

Alan Greenspan.
 
poborsky said:
I havent seen the Bob Prechter interview on you tube but its available here under sept 5th;

Financial Sense Newshour with Jim Puplava
Click to expand...

Thanks for that; fascinating. Curiously, I don't think Prechter and Schiff are quite so diametrically opposed in some ways, as it might seem; at least that's the way I interpret it.

Another good interview on that site:

Marc Chandler, Author of "Making Sense of the Dollar: Exposing Dangerous Myths About Trade and Foreign Exchange"

Edit: Also: 21st August 2009: Jack D. Schwager
 
Last edited:
N Rothschild said:
fkin retard
Click to expand...

Good God, is Schiff still going on and on about fooking gold? The tw@t's been saying the same stuff for 5 years...whatever...:whistling

P.S. I've got Krugs, Pandas & sovs, only 'cos they're; nice, shiney, portable and v. easy to convet to useless cash at the drop of a hat. :)
 
Ingot54 said:
It is very clear to anyone who is even half interested, that the USA does NOT intend to repay its debts. For starters, they do not know how to even begin, and no one is keeping account of who is getting what, and who is repaying what.

China is correct to be fearful that they are devaluing the US Dollar. Chinese refusal to participate any further in the Bond Auctions, hastening instead in their active pursuance of the B.R.I.C. group currencies to establish SDR's (Special Drawing Rights) is an ominous signal that within a few years they intend to replace the USD with the Renminbi as World Reserve Currency.

Why else do you think the Chinese are refusing to allow the Renminbi to appreciate? They have the best exporting deal on the planet, based on a solid currency, and the backing of Brazil, Russia, India and themselves. There is no reason to pander to US debt any longer than is necessary - thus the shunning of the Bond Sales.

People who think there will be no hyperinflation are delusional - still locked into pre-2007 economic thinking. The only way the USA will be able to survive when external borrowing fails, is to print up money a la Zimbabwe-style. The argument that the USA is too big to fail, and that we need the participation of the UA to continue to run the world markets is the furtive bleating of a sacrificial lamb, about to be savaged by the Eastern Bloc Cartels.

I do not have to be right about this. Under any economic plan, Hyperinflation is now inevitable. The question should instead: "How can Weimar-Style Hyperinflation be AVOIDED?"

I just have to be an observer. The USA has lost it big time. They simply have no clue ... images of a headless chook spring to mind. Unemployment still rising, and they speak of the green shoots of a recovery. I sincerely hope they are correct - but when you purchase your own bonds, and then use the cash you just printed to support the S&P 500, you create an illusion that all is well - that investors are rushing back into the markets.

Since March 2009 to September 2009, the USD has been devalued almost 13.5% - from an Index of 88.5 to 76.6 at the close this week.

Gold is rising, Silver is rising faster, and any person who is doing the wekly shopping is well aware that we do NOT have deflation of prices - we have an almost weekly INFLATION of the prices of our food.

Our petrol is almost back to the level we were paying when Crude was USD$1.46/bbl yet Crude is still priced at only USD$70/bbl.

Higher energy prices were what precipitated the defaults, as people simply had their spare $$ sucked up by the greedy Oil Cartels, and speculators and hedgies pushed the price to dizzy heights, caring little of the destruction this was causing in the world economy.

Consumers and producers alike had to endure ever-increasing energy costs, which simply fed through to the retail end, inflating all along the price chain as it went.

Few people will discuss the role of high energy prices in the collapse and the WFC, but in my mind it is a simple equation. When next oil breaks USD$110/bbl (here insert your own arbitrary figure - who really knows) we will again see a spectacular collapse, but this time, there will be rapid capitulation of many markets.

The recent painful memories of the past 2 years will rapidly return to haunt even the smallest and most optimistic investor.

If you think I'm nuts about this ... think again.

Look at this - I rest my case.

YouTube - Alan Grayson: Is Anyone Minding the Store at the Federal Reserve?
Click to expand...

Quality posting there bud, enjoyed reading that. :)
 
Leverage

montmorencyt2w said:
.

Speculators - like you and me, you mean? :)


I do agree with your posting however.
Unfortunately.

Alan Grayson clip: That has been posted here before, and is still painful to watch.
"We do not have the authority to audit the Federal Reserve ..." (or similar wording).
If not, then who?
If no-one, then to whom are they accountable?

Beggars belief.
Click to expand...

Yes - I saved the lnk for the Vid - just forgot where I snatched it from.

But as I see this, the speculators (we are not in the same class - we follow them) are driving up the cost of Crude, hoping to make $20 million or so. But the roll-out effect on the Global economy of their making that $20 million, may be several trillions of dollars.

My question to the economists of the USA: "Is it worth allowing a few hedge funds to make $20 - $100 million dollars (name a figure), while leveraging that across the planet to cost people hundreds of billions?"

The next moon shot in oil will be the proverbial last straw!
 
poborsky said:
It will not be long until energy demand from the emerging Asian economies rises to take up the slack and then the crunch will occur. The truth is that supply can no longer be increased to keep up. The subsequent rise in energy costs will be catastrophic for western economies in particular. The game is up. There is no plan b.
Click to expand...

Everyone seems to think that the emerging economies of China and India will save the world, but the consensus are almost always wrong.

There was a huge oversupply in the world economy which created the credit bubble. This is now starting to unwind. The flood of cheap, paper money has also created bubbles in Chinese property and stocks. Chinese manufacturing, industry and production of goods has also boomed off the back of a credit-binged U.S. and global economy.

The stimulus money- which came from either reserves (creamed from the oversupply) or printed money (in the case of debtor nations such as U.S. and U.K.) has helped to reflate the economies in the hope that the economies will be ignited and can get back to where they were.

Since the relaxing of the gold standard in 1971, the U.S. has printed trillions of free money, which has allowed us to live beyond our means, which we also now foolishly see as our god-given 'standard-of-living'.

If you look beyond the stock rally and the business/consumer confidence rallies (confidence instilled by the stock rally) you will see that the outlook for the global economy is rotten. High levels of unemployment, credit de-leveraging, banks failing to lend to small/medium business, foreclosures etc.

In my opinion, the rally from the March lows is false and has been created using the stimulus money and P.R. exercises such as the 'stress tests' and the lip service that we receive from G20 leaders and the corporate-owned news outlets, who have said on record before that they give us the news that THEY want us to have.

Bernanke and co coming out from the stress tests and predicting another Lehman would’ve been financial suicide and would’ve immediately caused bank runs and further meltdown.

And so we are continuing this game. The creators of our flawed fiscal policy and failed regulation are scrambling around, injecting billions into markets and telling us that we have emerged from the crisis safe and sound.

If you look beyond the smoke and mirrors, you will see articles that should at least give a conservative approach to the bull run- moodys this week predicting 100bn of further UK bank losses, Central Banks such as Brazil saying that they are using IMF stimulus money to sell US dollars, the U.S. money balances collapsing, the derivatives timebomb, commercial property etc.

The entire global economy has been built beyond its means to accommodate a US economy, whose GDP is a mind-boggling 70% consumer-led.

To summarize, the game is up for the global economy built on fiat money and once the sugar-rush of the stimulus wears off; THEN we will see where we stand.
 
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