PostHeaderIcon Hyperiinflation Unavoidable by 2014

That is a sobering thought, isn’t it? Reading Jerome Corsi’s latest article entitled, “True U.S. debt exceeds world GDP by $14 trillion,” led me to economist Walter (John) Williams Shadowstats website, where I noticed a “Hyperinflation Special Report for 2011” was available. It contained the following bullet points:

• United States Nears Hyperinflationary Great Depression
• Federal Reserve and Government Have Exploded the U.S. Fiscal Crisis, Shattered Global Confidence in the U.S. Dollar but Not Resolved Ongoing Economic and Systemic-Solvency Crises
• High Risk of Ultimate Dollar Disaster Beginning to Unfold in Months Ahead, 2014 Remains the Outside Timing for Same
• Contracting Money Supply Can Be Inflationary When Real Economy Contracts Even Faster
• Major Economic Series Suggest Formal Depression in Place

Unfortunately, the report itself is currently only available to paid subscribers of his newsletter. Last year’s 2010 report is accessible, however, and it is some fascinating reading. One paragraph was sobering indeed:

The government’s finances not only are out of control, but the actual deficit is not containable. Put into perspective, if the government were to raise taxes so as to seize 100% of all wages, salaries and corporate profits, it still would be showing an annual deficit using GAAP accounting on a consistent basis. In like manner, given current revenues, if it stopped spending every penny (including defense and homeland security) other than for Social Security and Medicare obligations, the government still would be showing an annual deficit. Further, the U.S. has no potential way to grow out of this shortfall.

Unfortunately, Williams backs up those assertions with compelling facts, figures, and graphs. He expects the triggering event will be foreign dumping of dollars and dollar valued assets, when foreign investors eventually get nervous about our insolvency, and notes this could happen at any time. I would love to read the updated 2011 version, but the bullet points above show that he now predicts it must happen by 2014 at the latest.

Take the time to read it; he offers some sobering thoughts on what the aftermath will look like… and plan accordingly. For instance, thinking about survival in the chaos that will follow, I think I will exchange a fair amount of my gold for silver coins, so I will have smaller denominations for barter. I won’t want any rapidly depreciating greenbacks, and how many sellers will be able to make silver change for an ounce of gold? â—„Daveâ–º

One Response to “Hyperiinflation Unavoidable by 2014”

  • Troy says:

    Buying silver rather than gold makes a lot of sense if you think you can ride out the collapse here in the current U.S.A. Gold makes more sense if you are looking for a more compact form of wealth that you can take with you if you plan to flee the U.S.A. I think I will use a strategy of having what I can afford of both gold AND silver since I do not yet know whether fleeing or staying is the best option.

    I consider it highly likely that, once martial law is in place, they will try to confiscate our precious metals at the same time they try to confiscate our weapons so it may not matter one way or the other.

    The situation in the U.S. is far, far more serious that most of the sheeple realize and there seems no way to get many of them to listen. The very idea that our representatives continue to spend so much time focusing on abortion, gay marriage and global climate change while our economy and our liberty both collapse is, to me, a clear sign that the situation is hopeless.


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