Yea, I agree. That makes Williams’ prediction shocking to me. I have no doubt he knows of that which he speaks, in both instances. To me, hyperinflation is the same as a currency collapse. In every single case in history, one leads to the other once faith in the currency is lost.
This time, we will see numerous currencies collapse, IMO. Economic dislocation is coming; some nonessentials will remain linked to the dollar while essentials not produced here, and even some that are will continue to become more expensive.
Speaking of 100% plus inflation, check out the recent increase in the price of farmland! The last time we had farmland increase this much was back in the seventies, not long after Nixon took us off the gold standard.
Gold: 200%, gasoline: 200%, Oil 300%, farmland 400%; the beginning results of QE and of artificially keeping interest rates at zero.
The reason for ZIRP, we can’t afford to pay the interest on the government debt now, much less if interest rates are allowed to adjust via the market demand. Savers and investors are being hit with a MASSIVE stealth tax from practically zero return for the use of their capital.
Russia and China are working hard to destroy the dollar as the world’s currency. Heck, even Brazil is not happy about accepting the dollar in return for their goods. The Arabs are now accepting currencies other than the dollar for their oil. This hasn’t happened since Nixon. Gold is making inroads as a medium of exchange between countries.
Things happen slowly then all at once!
With the state of housing one of collapse, I don’t really see how farmland prices are rising. What is your source for that statement?
I am not familiar with the term ZIRP.
Nor do I believe Russia and/or China has any interest in destroying the dollar since that would wreck the latter’s export policy.
The Arabs are trying to make the Euro the currency to buy oil but, given the problems within the Euro block I do not believe that will be a long term solution. Nor will they accept any other currency than the dollar or Euro.
Gold is in no way becoming money again.
