I have discussed elsewhere why I am convinced that hyperinflation is in our future. In this piece I will elaborate on what this will mean for Americans, and others.
In his excellent article Hyperinflation Around the Globe, Mike Hewett looks at 40 recent hyperinflations. So far the US has escaped this scenario, because the US dollar is the world’s reserve currency. As these other currencies have collapsed they have purchased US dollars, soaking up many of our excess dollars; and other countries, such as China, India and Japan, have purchased much of our debt and are likewise holding trillions of US dollars. But these nations are clearly becoming increasingly reluctant to continue holding these diminishing pieces of unbacked paper, as the Fed continues to erode their spending power by counterfeiting massive amounts of new paper to finance a central govt whose spending addiction is out of control! As a result, the US dollar is destined to lose its status as the world’s reserve currency, and all of these dollars and others will be dumped, and we will see the grandfather of all hyperinflations right here in this country. And this may happen sooner than you think! It is happening before our eyes, but thus far in a controlled manner.
The Fed creates inflation by keeping interest rates artificially low and increasing the money supply. The only weapon the Fed has against inflation is the interest rate. But raising interest rates will rapidly and most assuredly crush our already hurting economy. The govt will not allow this because they have clearly indicated that they are more concerned about protecting Wall Street than Main Street. In their view, such a “cure” would be far more disastrous than allowing the disease to continue.
Consider the example of the recent hyperinflation in Zimbabwe. Eventually like Zimbabwe, the US govt, as a desperate measure, will establish price controls (like they did during the inflation of the 1970s. ) But price controls always produce shortages, which in turn produce rationing. Guess who will get the rationed goods? In Zimbabwe, the govt printed trillions of new dollars so it could give the military and the police raises while everyone else paid the price through the loss of the spending power of their money. The same will happen here, because the govt will need the military and the police to arrest dissenters (who will be deemed terrorists) and thus keep the people under control. Think this is far-fetched? Well how about this: The govt has recently distributed a booklet on terrorism to many local police departments, containing examples of symbols and flags used by terrorists, and ONE OF THE SO-CALLED TERRORIST FLAGS PICTURED IN THIS BOOKLET IS THE GADSDEN FLAG ADOPTED BY THE TEA PARTY MOVEMENT!
The handwriting is on the wall! There will be much weeping and gnashing of teeth. A national emergency will occur, and the FEMA camps will be used as prisons to hold trouble-makers and dissenters, who will be forced into labor and eventually exterminated.
Consider again the recent Zimbabwe example. In Zimbabwe the people who had bread to sell stopped accepting paper money and demanded to be paid in gold. The only people who ate were the ones who had gold, or who could find it (see video below.) Others starved.
Watch the video on the web page below to get an idea of what the future holds for Americans. I am not talking about a long-term future. Many are predicting that this will happen by 2014, and quite possibly much sooner than that. NOT COINCIDENTALLY, by this time Obamacare will be in full effect, and it will provide the infrastructure needed for the rationing of our health care. Don’t think for a second that they don’t know that this is coming. Watch the video: