it says - industrial produktion against amount of money from 1980 to more or less now. And it means that you are basically right - but that he's not the first - only probably the last.
Posted on 02/18/2010 3:05:18 AM PST by Scanian
Growing demands on the federal government have invited a massive buildup of government debt now and over the next several years. US fiscal policy must focus on reducing this debt buildup and its consequences.
History holds many examples of severe fiscal strains leading to major inflation. It seems inevitable that a government turns to its central bank to bridge budget shortfalls -- with the result being too-rapid money creation and eventually, not immediately, high inflation.
German hyperinflation is one classic and often-cited example, and with good reason. When I was named president of the Federal Reserve Bank of Kansas City in 1991, my 85-year old neighbor gave me a German 500,000 Mark note.
(Excerpt) Read more at nypost.com ...
The US government is broke and in debt up to its eyeballs and still the growth of goobermint and spending continues at record pace.
what is getting ready (has actually started) to happen to the standard of living in the US.
it says - industrial produktion against amount of money from 1980 to more or less now. And it means that you are basically right - but that he's not the first - only probably the last.
"There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as a result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved."
~~Ludwig Von Mises
Mr. Hoenig is right, IMO. There will be deflation, until oil and/or foreign product prices rise unexpectedly (Chinese GDP expected to be around 11% for this year). The following tsunami of inflation won’t look very harmful at first. It will be seen as hyperinflation, after everyone is trapped in it.
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