Almighty Dollar

Now Or Never

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The Case for Hyperinflation in the US
— Posted Wednesday, 21 September 2011
By Jeff Berwick, The Dollar Vigilante
 
The bankers (who are all artificial, non-free market entities in this non-free market financial system) would lose everything if the currency goes to zero.
However, that has never stopped them before.  In fact, during many of the hyperinflations of our time, including Weimar and the ongoing hyperinflation in Argentina, the last people to see the causes of the hyperinflation (money printing) are the central bankers and the economists of the banks.
Remember, they’ve all been brainwashed with modern day Keynesian economics, which is witchcraft and delusionary.  They actually believe that inflation is caused by prosperity… and not money printing. 
 
.  .  .  
And, even when the US dollar goes to zero, it does not mean the banks are out of luck.  Not if they were like the French banks in the beginning of the 20th century.  In a book published in 1912, called “Fiat Money Inflation in France”, Andrew White recounts how the government changed the rules and stated that all debts increased along with the issuance of further currency, so that for every so many additional assignats printed, one’s debts increased by 25%. 
The US Government owns all the guns.  It would not be beyond them to state that all debts held in dollars are now held in the New Dollar.  Or, what they will likely name, the “Patriot dollar”.
As Congressman Pete Stark stated, “The Federal Government can do most anything in this country.”
.  .  .   
.  .  .  Gary North states that because of the boom-bust cycle, the US will be forced to stop printing money before entering hyperinflation.  As example, he states how Volcker was forced by rapidly rising prices to slow money printing and allow T-Bill rates to rise to 22% to stop the inflation.
There is only one problem with this.  The US Government debt in 1979 was hardly anything as it had only been 8 years since Nixon delinked the dollar from gold.  Today, however, the US Government (and most western governments, ask Greece) have had plenty of time to build up mountains of debt.
Today, as we showed here, an interest rate of only 11.1% will effectively take all real income of the US Government just to pay for the interest alone.
 
In other words, raising the interest rates to even 11% this time around will destroy the US Government.
That’s why Paul Volcker, who was on a “panel of experts” advising Barack Obama already quit and left town on January 5th of this year.  He took out his calculator, punched in a few numbers, looked around and decided it was time to retire.
Greenspan left on similar premises right before his housing bubble burst.

 
Read more »

The Case for Hyperinflation in the US

— Posted Wednesday, 21 September 2011

By Jeff Berwick, The Dollar Vigilante

The bankers (who are all artificial, non-free market entities in this non-free market financial system) would lose everything if the currency goes to zero.

However, that has never stopped them before.  In fact, during many of the hyperinflations of our time, including Weimar and the ongoing hyperinflation in Argentina, the last people to see the causes of the hyperinflation (money printing) are the central bankers and the economists of the banks.

Remember, they’ve all been brainwashed with modern day Keynesian economics, which is witchcraft and delusionary.  They actually believe that inflation is caused by prosperity… and not money printing. 

.  .  .  

And, even when the US dollar goes to zero, it does not mean the banks are out of luck.  Not if they were like the French banks in the beginning of the 20th century.  In a book published in 1912, called “Fiat Money Inflation in France”, Andrew White recounts how the government changed the rules and stated that all debts increased along with the issuance of further currency, so that for every so many additional assignats printed, one’s debts increased by 25%. 

The US Government owns all the guns.  It would not be beyond them to state that all debts held in dollars are now held in the New Dollar.  Or, what they will likely name, the “Patriot dollar”.

As Congressman Pete Stark stated, “The Federal Government can do most anything in this country.

.  .  .  

.  .  .  Gary North states that because of the boom-bust cycle, the US will be forced to stop printing money before entering hyperinflation.  As example, he states how Volcker was forced by rapidly rising prices to slow money printing and allow T-Bill rates to rise to 22% to stop the inflation.

There is only one problem with this.  The US Government debt in 1979 was hardly anything as it had only been 8 years since Nixon delinked the dollar from gold.  Today, however, the US Government (and most western governments, ask Greece) have had plenty of time to build up mountains of debt.

Today, as we showed here, an interest rate of only 11.1% will effectively take all real income of the US Government just to pay for the interest alone.

In other words, raising the interest rates to even 11% this time around will destroy the US Government.

That’s why Paul Volcker, who was on a “panel of experts” advising Barack Obama already quit and left town on January 5th of this year.  He took out his calculator, punched in a few numbers, looked around and decided it was time to retire.

Greenspan left on similar premises right before his housing bubble burst.

Read more »

Filed under economy economics Keynesian economics hyperinflation US dollar Fed Federal Reserve central bankers debts interest rates Treasury bond interest rates

  1. bankerpigs posted this