Skip to comments.Greece Will Experience Hyper Inflation and So Will the Rest of Europe--07.May.2012
Posted on 05/07/2012 2:36:16 PM PDT by appeal2
"Ranting" Andy Hoffman was with us today to review the ever declining and disintegrating world economy and to offer us his weekly insight into the precious metals markets. While gold and silver prices have been under repeated attack, Spain, Portugal and Italy have become complete basket-cases. Add to that, the election of a socialist government over the weekend in France, declining support for Merkel in Germany, and Conservative Party losses in England, and you have the prescription for a hyper-inflationary bust. In Greece, the major parties only received 35 percent of the vote, with the majority being split between minor party candidates with off the wall agenda. All things considered, Andy was less than a breath of fresh air. Andy is never one to sugar coat the truth, especially now, when the pace of the decline is starting to speed up, which leaves only gold and silver for those seeking to protect their wealth.
Listen to the Interview Here
Shades of the Weimar Republic and Zimbabwe.
How to Turn 100 Trillion Dollars Into Five and Feel Good About It
A 100-trillion-dollar bill, it turns out, is worth about $5. That’s the going rate for Zimbabwe’s highest denomination note, the biggest ever produced for legal tenderand a national symbol of monetary policy run amok. At one point in 2009, a hundred-trillion-dollar bill couldn’t buy a bus ticket in the capital of Harare.
But since then the value of the Zimbabwe dollar has soared. Not in Zimbabwe, where the currency has been abandoned, but on eBay.
The notes are a hot commodity among currency collectors and novelty buyers, fetching 15 times what they were officially worth in circulation. In the past decade, President Robert Mugabe and his allies attempted to prop up the economyand their governmentby printing money. Instead, the country’s central bankers sparked hyperinflation by issuing bills with more zeros.
Trade your Euros to British pound sterling or Swiss francs...
It’s coming to America too, and soon.
Just in time for Romney's sacrificial lamb GOP administration, setting the stage for Obama's comeback campaign in 2016. Motto: "We TOLD you so!"
This is possible. One way or the other the Eurozone is going to collapse and the European socialist systems will fall. When the end comes it is going to be a spectacular crash. But I think they can kick the can down the road for a fair bit longer - possibly even a few years. The system can be gamed awhile longer. Using logic and expecting election results like we just saw in Greece and France to kick off the tailspin is misguided. Europeans will do ANYTHING to prop their systems up for as long as possible. They will cook the books even more, they will lie, they will eat even more of the loss on Greece, etc, etc. That’s why when the whole thing really does go belly up, there will be no tools, confidence or trust to at least allow for a soft landing.
It should be apparent that neither of these alternatives is likely in the case of a really large failure in either Europe or the United States. There simply isn't that much hard currency to be had. And so we continue gaming the system and hoping for a soft landing. I can offer no speculation as to how long they'll be able to keep the ball in the air, and I don't like thinking about what will happen when that is no longer possible.
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