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 ...
Hyperinflation, a very ugly concept . . . Gold and silver are looking better and better.
bookmark
Next year? Maybe sooner than most think. Maybe Second Half 2009. But not Housing, yet.
"The dreadful policy proposals will continue until the market rallies."
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.
“So where is the money?”
There’s a run on PVC pipe and caps... get it while you can. ;>)
If the Fed's balance sheet grew by 271%, that doesn't mean the money supply did the same. Sorry, toe-sucker.
substitute iron instead...
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?
borrow lots of money at fixed interest rates
if you have good credit, there are plenty of loans available
exactly my plan...:) am already implementing it...obama’s gonna make me rich...then I’ll 1031 out...
I was going to say the opposite. Doubtful it will happen as soon as next year.
sw
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.
Hyperinflation, a very ugly concept . . . Gold and silver are looking better and better.
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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..
Nothing like planning ahead.
The market will not rally.
Write it on a rock.
Prepare. IMO.
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...
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