|10-13-2009, 12:58 PM||#1|
Ring of Famer
Join Date: May 2001
Is hyperinflation inevitable in America?
I still don’t think it is, but has this administration done one thing to make it less likely? (I put Bush in this group as well.) There are many reasons why this sad scenario will play out sometime (in my opinion) in the next ten years (if not much sooner.)
Oil internationally is traded in the American dollar – when countries de-peg from the dollar what will that mean? It will mean the market will be flooded with more dollars, which of course will be another factor in pushing inflation much higher. Of course we have been spending much more, and more money has been printed to keep up.
The primary reason why I have little hope in dealing with this coming problem is that there is a collective lack of will of the government to address the problem in both parties. By creating a crisis the government benefits as our massive debts can be paid off with significantly deflated dollars. The person who gets screwed will be the little guy, who can no longer buy food.
So what it hits, what will the government’s solution be? It can raise interest rates sky high, and tighten the dollar supply, or it can plan for a “do-over” by looking for an international solution. In fact the international community – will push for this – i.e. those that hold our debt will justifiably be angry, and demand greater controls, which might mean a different currency – if that currency is part of a European style Euro, it will by necessity mean increased foreign entanglements, and less individual liberties. You canb at least bank on that.