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Coming Next Year: Obama’s Inflation
newsmax.com ^ | March 5, 2009 | Dick Morris and Eileen McGann

Posted on 03/05/2009 6:17:40 PM PST by Free ThinkerNY

During the past five months, the money supply in the United States has almost tripled, increasing by 271 percent, according to the Federal Reserve Board.

Have car sales tripled? Home purchases? Consumer spending? Corporate investment? Not only have they not tripled, but they have all declined more sharply than they have since at least the recession of 1981-82, and perhaps since the Great Depression.

So where is the money? If it isn't being spent, where is it?

It is being parked, squirreled away. Consumers are using it to pay down their credit-card balances, pay off their mortgages, reduce their student loans, make the payments on the car sitting in the driveway — not the one in the dealer's lot. Businesspeople are buying T-bills, investing the money and saving it. They aren't spending, either.

But one day, this recession, despite Obama's best efforts, will end and things will begin to look up again. Then we can expect all of this money to come out of its parking space and get back on the highway of commerce. All at once. The inevitable result will be double-digit hyperinflation.

Since the spending and borrowing splurge is not confined to Washington but is being mimicked all over the world, the inflation will not strike just one country but will be global in scope.

(Excerpt) Read more at newsmax.com ...


TOPICS: News/Current Events
KEYWORDS: bho44; bhoinflation; dickmorris

1 posted on 03/05/2009 6:17:40 PM PST by Free ThinkerNY
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To: Free ThinkerNY

Hyperinflation, a very ugly concept . . . Gold and silver are looking better and better.


2 posted on 03/05/2009 6:21:17 PM PST by txnativegop (God Bless America! (NRA-Endowment))
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To: Free ThinkerNY

bookmark


3 posted on 03/05/2009 6:21:45 PM PST by webschooner
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To: Free ThinkerNY

Next year? Maybe sooner than most think. Maybe Second Half 2009. But not Housing, yet.


4 posted on 03/05/2009 6:21:48 PM PST by TCats
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To: Free ThinkerNY
Inflation for the U.S. Dollar to soon be at 6.5 quindecillion novemdecillion percent - 65 followed by 107 zeros. “Prices doubling every
24.7 hours.
5 posted on 03/05/2009 6:22:20 PM PST by SandRat (Duty, Honor, Country! What else needs said?)
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To: Free ThinkerNY

"The dreadful policy proposals will continue until the market rallies."

6 posted on 03/05/2009 6:23:46 PM PST by sourcery (Obama Lied. The Economy Died!)
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To: Free ThinkerNY

Government revenue would, at least, increase by maybe half if Democrats had to pay taxes other than when they are appointed to a government position.


7 posted on 03/05/2009 6:25:40 PM PST by arthurus ( H.L. Mencken said, "Every election is a sort of advance auction sale of stolen goods.")
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To: Free ThinkerNY

“So where is the money?”

There’s a run on PVC pipe and caps... get it while you can. ;>)


8 posted on 03/05/2009 6:27:00 PM PST by Gator113 (For America to survive, Obama must fail.....)
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To: Free ThinkerNY
During the past five months, the money supply in the United States has almost tripled, increasing by 271 percent

If the Fed's balance sheet grew by 271%, that doesn't mean the money supply did the same. Sorry, toe-sucker.

9 posted on 03/05/2009 6:29:48 PM PST by Toddsterpatriot (Havoc has been back since September. Or was it April?)
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To: Gator113

substitute iron instead...


10 posted on 03/05/2009 6:43:12 PM PST by stefanbatory (Do you want a President or a King?)
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To: txnativegop

and as for fighting hyperinflation, would it not be wise to not hold cash but rather hard assets? not just gold or silver, but any hard assets...real estate for example...maybe scrap metal? how about dairy cows?


11 posted on 03/05/2009 6:44:30 PM PST by stefanbatory (Do you want a President or a King?)
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To: stefanbatory

borrow lots of money at fixed interest rates
if you have good credit, there are plenty of loans available


12 posted on 03/05/2009 6:46:22 PM PST by nascarnation
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To: nascarnation

exactly my plan...:) am already implementing it...obama’s gonna make me rich...then I’ll 1031 out...


13 posted on 03/05/2009 6:50:19 PM PST by stefanbatory (Do you want a President or a King?)
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To: TCats

I was going to say the opposite. Doubtful it will happen as soon as next year.


14 posted on 03/05/2009 6:53:19 PM PST by Huck ("He that lives on hope will die fasting"- Ben Franklin, Poor Richard's Almanac)
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To: Free ThinkerNY
Creating an impending hyperinflation crises is one way to get the consumer to go out and buy more stuff they don't need.

sw

15 posted on 03/05/2009 6:57:24 PM PST by spectre (sw )(Congress lied...the economy died)
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To: Huck
My basis is the inevitable drop in the Dollar and the enormous Deficits. Too many Dollars chasing too few goods (Although not things dependent upon financing) and higher prices of Imports, something we are addicted to big time.

I think it can happen faster than most would think - The old ‘Stagflation’ thingy. And the Fed will not be able to raise Interest Rates much in response.

16 posted on 03/05/2009 7:00:18 PM PST by TCats
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To: txnativegop

Hyperinflation, a very ugly concept . . . Gold and silver are looking better and better.
*****************************************************
I am looking forward to paying off my mortgage with a box of Chips Ahoy cookies and a half gallon of milk... I might even book a few cruises a year out and lock in the rates now..


17 posted on 03/05/2009 7:05:41 PM PST by Neidermeyer
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To: Neidermeyer

Nothing like planning ahead.


18 posted on 03/05/2009 7:07:14 PM PST by txnativegop (God Bless America! (NRA-Endowment))
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To: sourcery

The market will not rally.

Write it on a rock.

Prepare. IMO.


19 posted on 03/05/2009 7:19:23 PM PST by Hilltop (Control the high ground. Control the battlefield.)
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To: Hilltop
The market will not rally.

And Obama will not stop making dreadful policy proposals. And at least some of them will actually be implemented. That's what the market is telling us...

20 posted on 03/05/2009 7:30:39 PM PST by sourcery (Obama Lied. The Economy Died!)
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To: Hilltop

Inflation is going to skyrocket.

In fact it is unavoidable.

And unless Obambi starts making the RIGHT choices and stop this insane spending spree, youll be able to use the dollar as toilet paper very soon because that will be about all it will be worth.


21 posted on 03/05/2009 7:32:22 PM PST by Ev Reeman
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To: Free ThinkerNY

It wasn’t ever money in the first place!

Like where did all the money from the housing market go? All these people losing, where did the money go?

It never existed!!!

It was the government’s plan to provide minority housing without having to foot the bill. They scammed their way out of paying for it for the past decade or so (since Clinton era’s reconfiguration of CRA), by securitizing the debt and passing the losses off to unsuspecting investors, and now everything has come crashing down.


22 posted on 03/05/2009 7:53:26 PM PST by fuqueue
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To: Free ThinkerNY

Only kooks and crazies worry about money and inflation. It’s not sexy, like war, at all.


23 posted on 03/05/2009 8:21:44 PM PST by MichiganConservative (You are a slave. The government is your owner and master. For many slaves, it is also their god.)
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To: Ev Reeman

“And unless Obambi starts making the RIGHT choices and stop this insane spending spree, youll be able to use the dollar as toilet paper very soon because that will be about all it will be worth.”

looking out 5 years, and assuming no catastrophic scenarios, devaluation of the dollar is my single biggest concern.

I wonder what factors would prevent a rise in gold under that scenario. Excessive central bank selling?


24 posted on 03/05/2009 8:49:56 PM PST by WoofDog123
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To: Free ThinkerNY
Photobucket
25 posted on 03/05/2009 8:59:39 PM PST by Tex Pete (Obama for Change: from our pockets, our piggy banks, and our couch cushions!)
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