HYPERINFLATION ALERT!
By Dr. Fred Goldstein
May 18, 2009
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"I lived through the German hyperinflation of
1920-1923 and I can tell you that America is
speeding down the same road to hyperinflation and
bankruptcy. The Federal Reserve is doing the same thing to the money
supply as the Reichsbank did -- increasing it
substantially, though on a smaller scale so far. The
American middle class will be wiped out in a
hyperinflation of the dollar. Your readers may protect themselves
by holding gold, which will survive the destruction of all
paper assets."
-DR. G.C. WEIGAND, Professor of Economics
Emeritus, So. Illinois University as quoted in "The Gold & Silver
Report", Feb. 1987
Consider what the U.S. is presently doing to
create hyperinflation ...
* Within the last year the Fed's balance sheet has
expanded $2.2 trillion
* The Federal government has enacted the TARP
bailout along with the nationalization of Freddie Mac
and Fannie Mae
* The Federal government has funded AIG with over
$160 billion
* The Federal government has added Medicare and
Social Security liabilities
How much longer can the Federal Reserve and
government defy the laws of money?
Ned Schmidt, CFA, CEBS offers his perspective in the
following Financial Sense editorial;
"How will history judge this violation of
the "laws of money"? What will the
ramifications of the Federal Reserve totally abandoning its independent
role, becoming nothing more than the source of financing
for the populism of the Obama regime?"
Ambrose Evans-Pritchard, International Business
Editor for The London Telegraph writes on 5.7.09;
"China has given it's clearest warning to date that emergency
monetary stimulus by Western governments risk setting off worldwide
inflation and undermining global bond markets."
Bob Chapman, Editor of International Forecaster is even more adamant
and specific about this matter on 4.29.09;
"The increase of money and credit, the monetizing and demands by
the Treasury in just 2009 alone will devalue the purchasing power of the
dollar by 85%. A $2.50 loaf of bread could cost $15.00 in just two
years."
The U.S. government, as well as major financial institutions are faced
with many economic challenges in 2009. Our politicians and leaders have
resorted to Keynesian economics in tandem with a "too big to
fail" agenda. Creating more debt to bail out banks, brokerages,
insurance companies and mortgages is at best a temporary fix that
inevitably trickles down to hurt all dollar savers.
We at Swiss America are offering a viable economic solution to our
valued prospective clients. Buy physical gold and silver now with both
personal resources and retirement funds! Do not wait for a price
correction, which may never come.
Editor's Note: Hyperinflation in
the News …
“You know things are
really awful when a nation’s rate of hyperinflation gets into the
territory of Weimar Germany. Between August 1922 and November 1923,
German inflation rose about 10 billion percent, according to a textbook by
Columbia University’s R. Glenn Hubbard. Zimbabwe topped that record
for economic mismanagement last year. The country’s annual rate
peaked at 489 billion percent in September 2008, according to the
International Monetary Fund reported WSJ
.
"Fed Historian sees 1970s-Style Inflation:
Fed Chairman Ben Bernanke is siding with John Maynard Keynes against
Milton Friedman by flooding the financial system with money. If history is
any guide, says Fed historian and professor of political economy at
Carnegie Mellon University Allan Meltzer, the effort will end in tears.
Inflation "will get higher than it was in the 1970s," says
Meltzer reports Real Money Perspectives.
“Up until August 2008,
the portion of the US monetary base that consisted of bank reserves was
between 8% and 12%. In December 2008, however, that proportion had
risen to 47%! The resulting massive expansion to the US monetary base
increases the probability of a complete collapse in the confidence of the
value of the US Dollar. This shift in sentiment would spark a
hyperinflationary fate to the world's de facto reserve currency,”
reports DollarDaze
a>.
“Hyperinflation is never controlled
domestically. It is created by outside forces. If China and other
buyers of our debt view the endlessly increasing American deficit spending
as a threat to the viability of the U.S. dollar they will abandon the
dollar and reduce their purchases of treasury bills. And if they walk away
from the dollar our currency will become junk and hyperinflation will race
through the society like a plague,” reports Triumph.
“Fed experimentation
could send too many dollars coursing through the economy, setting off a
nightmare scenario of rocketing, uncontrolled prices. Yet economist Ed
McKelvey of Goldman Sachs argues that is highly unlikely, and besides, the
U.S. central bank has ways to shut the monetary spigot, too -- for
instance, by shelving plans to buy mortgage-backed and other securities, or
by raising interest rates,” reports Barrons.
“The founders of
America experienced hyperinflation and the collapse of the Continental
dollar. They understood very well the detriments of using paper money
by government officials to pay for government expenditures. Their
experience led them to write into the United States Constitution that under
no circumstances could paper money (bills of credit) ever be used in the
payment of debts; only gold and silver, real commodity money, could be used
for that purpose. If America is to get off the hyperinflation train and
avoid tyranny, America must return to her guiding document, the Constituti
on,” YumaSaun
.
"Paper money eventually
returns to its intrinsic value – zero."
-Voltaire, 1694-1778