Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

US Inflation Could Hit 200%: Dr. Doom
CNBC ^ | Feb 6, 2009 | None known

Posted on 02/06/2009 6:59:26 AM PST by Lazamataz

The US risks being hit by Zimbabwe-style hyperinflation and there are signs that the world's biggest economy risks turning into a banana republic, Marc Faber, author of the Gloom, Doom & Boom report, told CNBC's "Asia Squawk Box."

"In the US, we have a totally new school, and it’s called the Zimbabwe school," Faber said. "And it’s founded by one of the great leaders of this world, Mr Robert Mugabe, that has managed to totally impoverish his own country. And that is the monetary policy the US is pursuing."

The government's increased intervention in the economy is likely to slow down economic growth because history shows that every time the private sector shrinks to make way for the government sector, the economy suffers, he said.

Asked whether the US risked being faced with 200 percent inflation, Faber answered: "Well, not yet. Not yet. But I think eventually. If I look at government debt in the US, and debt in general, I think the only way they will not default physically on their debt is to inflate."

The Federal Reserve's policy of printing money and the government's intervention in the economy might undermine the US's economic and political clout, Faber warned.

"Well, I wrote two years ago a report entitled 'Is America becoming a banana republic?' And there are some features that characterize banana republics- totalitarian states, very strong government intervention into the economy, and the polarization of wealth," he said.

"And we have all these trends occurring in the US. We are not yet there. And in theory it could be reversed, but I doubt it will be," Faber added.

Because of these factors, US government and corporate bonds, including that of CNBC parent General Electric [GE 11.00 0.15 (+1.38%) ], should be downgraded, he said.

"Yeh, I think GE should be a junk bond. But I also think the US government should be junk," Faber said, adding: "I don’t pay much attention to rating agencies. The rating agencies have totally failed over the last 3-4 years to identify sick companies."


TOPICS: Business/Economy; Extended News; Front Page News; News/Current Events
KEYWORDS: economy; inflation; recession; schifflist
Navigation: use the links below to view more comments.
first 1-2021-4041-52 next last

1 posted on 02/06/2009 6:59:27 AM PST by Lazamataz
[ Post Reply | Private Reply | View Replies]

To: Lazamataz

Don’t do it Laz!

At least not until I have an insurance policy signed and dated on ya, LOL!


2 posted on 02/06/2009 7:04:02 AM PST by Diana in Wisconsin (Save The Earth. It's The Only Planet With Chocolate.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Lazamataz

We are DOOMED!

(c)Lazamataz 2009
3 posted on 02/06/2009 7:04:46 AM PST by BullDog108 (A Smith & Wesson beats four aces)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Lazamataz
Just a few years ago I was saying that some lame-brain was going to propose inflation as a way out of the housing crisis. Juanita can't pay her $2000 mortgage? Well, put her into a fixed-rate mortgage, crank up the inflation, and pretty soon her cost of living raises will give Juanita a $100,000 salary as a barrista at Starbucks. It would make her mortgage much easier to pay. And she'll be living in a $2M house, too!

I just can't believe that we're actually going in that stupid direction.

4 posted on 02/06/2009 7:05:01 AM PST by ClearCase_guy
[ Post Reply | Private Reply | To 1 | View Replies]

To: Lazamataz

Wow! My truck will be worth over $250,000!


5 posted on 02/06/2009 7:05:51 AM PST by Dallas59 ("You know the one with the big ears? He might be yours, but he ain't my president.")
[ Post Reply | Private Reply | To 1 | View Replies]

To: Diana in Wisconsin
Don’t do it Laz!

Too late.


6 posted on 02/06/2009 7:05:55 AM PST by Lazamataz (Illegal Zombies: Just Eating the Brains that Ordinary Americans Won't Eat)
[ Post Reply | Private Reply | To 2 | View Replies]

To: Lazamataz
The Peter Schiff/Redistribution Watch Ping. (Washington Bankrupting our Nation by Spending your past, present and future money!)

You can read past posts by clicking on : schifflist , I try to tag all relevant threads with the keyword : schifflist.

Ping list pinged by sickoflibs.

To join the ping list: FReepmail sickoflibs with the subject line add Schifflist.

(Stop getting pings by sending the subject line drop Schifflist.)

7 posted on 02/06/2009 7:07:03 AM PST by sickoflibs (Pelosi: "Create jobs by teaching kids to use condoms in recovery bill ",condom jobs??)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Lazamataz

Inflation is the A#1 method used by the left to reduce the value of savings and investments to ZERO, thus making everyone equally poor and dependent on the government.
It doesn’t matter if you had a bank account worth $100 or $1,000,000. Both will become equal to a few pennies under hyperinflation.

Leftists’ dream! Eliminate the “haves” and blame it on some mysterious outside force called “inflation.”


8 posted on 02/06/2009 7:08:54 AM PST by Leftism is Mentally Deranged (liberalism = serious mental deficiency)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Harrius Magnus; mojitojoe; Pelham; mom2twinsn2; LongLiveTheRepublic; ConservativeOrBust; ...
The Peter Schiff/Redistribution Watch Ping. (Washington Bankrupting our Nation by Spending your past, present and future money!)
9 posted on 02/06/2009 7:09:22 AM PST by sickoflibs (Pelosi: "Create jobs by teaching kids to use condoms in recovery bill ",condom jobs??)
[ Post Reply | Private Reply | To 7 | View Replies]

To: Lazamataz

No problem. The federal government can just print more money to give to everyone to cover the loss of purchasing power.

See how easy that was?


10 posted on 02/06/2009 7:10:18 AM PST by Mojave (http://click-for.info/unemployment/jobsearch.html)
[ Post Reply | Private Reply | To 1 | View Replies]

To: sickoflibs; Lazamataz
I try to tag all relevant threads with the keyword : schifflist.

So those on yer ping list are a bunch of shiftless bums ?

Ro does the present economy have them all scared sh!tless?

11 posted on 02/06/2009 7:13:24 AM PST by BOBTHENAILER (One by one, in small groups or in whole armies, we don't care how we do it, but we're gonna getcha)
[ Post Reply | Private Reply | To 7 | View Replies]

To: ClearCase_guy; Lazamataz
Just a few years ago I was saying that some lame-brain was going to propose inflation as a way out of the housing crisis.

I'm wondering how long the deflation is going to go on.

The Fed is going to start buying treasuries, in large part because of a declining demand for them from overseas. The Fed and Treasury are printing money like crazy. The govt is committed to trillion dollar deficits for at least the next couple years. Yet we don't have any real inflation right now.

12 posted on 02/06/2009 7:17:39 AM PST by wmfights (If you want change support SenateConservatives.com)
[ Post Reply | Private Reply | To 4 | View Replies]

To: BOBTHENAILER; Lazamataz; rabscuttle385
RE “Ro does the present economy have them all scared sh!tless?

No scared of Washington elected esp Democrats. You trust them with economy? LOL . You got hope?

13 posted on 02/06/2009 7:17:41 AM PST by sickoflibs (Pelosi: "Create jobs by teaching kids to use condoms in recovery bill ",condom jobs??)
[ Post Reply | Private Reply | To 11 | View Replies]

To: Lazamataz

14 posted on 02/06/2009 7:21:14 AM PST by allmendream ("Wealth is EARNED not distributed, so how could it be redistributed?")
[ Post Reply | Private Reply | To 1 | View Replies]

To: PAR35; TigerLikesRooster; AndyJackson; Thane_Banquo; nicksaunt; MadLibDisease; happygrl; ...
*Ping!*
15 posted on 02/06/2009 7:22:05 AM PST by rabscuttle385 ("If this be treason, then make the most of it!" —Patrick Henry)
[ Post Reply | Private Reply | To 1 | View Replies]

To: rabscuttle385

zimbabwe here we come.


16 posted on 02/06/2009 7:24:23 AM PST by Perdogg (Only the hypnotized never lie)
[ Post Reply | Private Reply | To 15 | View Replies]

To: Lazamataz

In another interview today (Feb 6) Faber said that the price of gold could exceed the DJI. It just recently became higher thatn the S&P 500.

When pressed by the interviewer at what price that might be, he said if we pursue Zimbawe-like policies, it could be a trillion for the DJI & a trillion $ per OZ of gold.


17 posted on 02/06/2009 7:25:05 AM PST by preacher (A government which robs from Peter to pay Paul will always have the support of Paul.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: wmfights

“I’m wondering how long the deflation is going to go on.”

The truth is no one knows, not even the so-called gurus on Wall Street. But you can bank on this....Deflation will end at some point and inflation will rear it’s ugly head. And that turn from deflation to inflation will be swift, adrupt, and absolute. It’ll be an eye-popping experience.


18 posted on 02/06/2009 7:32:37 AM PST by Boanarges
[ Post Reply | Private Reply | To 12 | View Replies]

To: sickoflibs
You got hope?

Lot's of hope. Hope that aliens come down in the demonRAT conclave in VA and abduct every friggin' one of them. Beyond that---

NO HOPE---ALL IS LOST

19 posted on 02/06/2009 7:33:49 AM PST by BOBTHENAILER (One by one, in small groups or in whole armies, we don't care how we do it, but we're gonna getcha)
[ Post Reply | Private Reply | To 13 | View Replies]

To: allmendream

Thank you. You saved me the trouble of finding a good pic from an alternate comic universe to post.


20 posted on 02/06/2009 7:36:08 AM PST by Dr. Sivana (There is no salvation in politics.)
[ Post Reply | Private Reply | To 14 | View Replies]


Navigation: use the links below to view more comments.
first 1-2021-4041-52 next last

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson