Sunday, December 21, 2008

Great Depression plus hyperinflation

Terry Coxon, Senior Economist with Casey Research: Hyper inflation will soon replace deflation on consumer goods while the asset class continues down.


jerry said...

Very enlightening point-of-view from the discussion on the video. Worse than the 1970s inflation. That was bad. I was in the antique business then, and was buying out complete stores in extremely depressed Illinois towns and then trucking the contents and selling the entire lot at my own yard sale in Michigan. I never really felt the hard times back then. As a matter of fact, I never made more money in my life!!! when rating it on a dollar per hour ratio.

For many, hard time will be severe. As they stated, the dollar will lose value, but if you have cash, the interest rates you will get may actually balance out the deflated worth of the dollar.

We are entering a time that we have never really experienced. A low level manufacturing and industrial home front, with little to export, the printing of huge amounts of money increasing the money supply, yet it being hoarded by the rich banksters, and foreclosures and bankruptcies mounting up daily, along with rising unemployment.

finallyAwake said...

In your comments, you stated the following...

"but if you have cash, the interest rates you will get may actually balance out the deflated worth of the dollar."

Not sure what interest rate to which you're referring, but the current rates at banks are abysmal and will be even more so, when inflation really kicks in. Holding cash is perhaps the worst decision one could make in the current and impending climate. The smartest decision is to move your "cash" (fiat currencies are not real wealth and they are all destined to fail, since history bears no example to the contrary) into tangibles, such as real money, that being gold and silver. Precious metals stocks also, as many of them will make unprecedented gains. Any asset based in the Dollar is going to lose most or all of its value within the next three years. My suggestion to everyone is to get out of all Dollar denominated assets, including money markets, 401ks, savings accounts, etc. and get into gold and silver bullion (actual physical delivery, not ETFs or Comex). Radical changes are coming for our nation and I fear that a frighteningly small percentage of the population is prepared for the nightmare we soon face.

Food, water, shelter and clothing. If a man cannot provide for himself these four basic necessities, he is in for a very rude awakening of what it means to be human and, even more, what it means to be ignorant.

An enlightening point of view, indeed.

Anonymous said...

Interest rates abysmal???
You think this treasury bubble won't get pricked soon???

I think interest rates go to 18% in 12 months, as the feds have to roll 1.5 trillion in old debt before they go get more. Like 7 trillion more. You don't really think a crappy investment (the US) won't require more return to make the sale?

Just look at the tails being funded.

Anonymous said...

Uncle Sugar can take everyone's 401k's (almost $2 trillion) and force them into "protected" accounts that have only U.S. Treasuries, Argentina style and pay for next year. It's the years after that that will get tough.

Gervase said...
This comment has been removed by a blog administrator.

Think the income inequality is bad today wait until inflation reaches double digits.


The worst of both worlds