12 Warning Signs of Hyperinflation

I don't think SilverCedar's point is that our economy is a zero sum game. Our economic history has proved otherwise since our founding. I agree with the point that deficit spending is a problem in an of itself, and also from the standpoint of opportunity cost. Investment dollars siphoned from the private sector are unavailable to grow the economy.

Government has a role to play in social programs but are clearly overreaching. If one were to run their household budget like our government handles it's fiscal matters, they would no longer to have access to credit and would not have enough income to pay the bills. Is there any level of deficit spending that would cause you concern?

 

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the last time we had a lot of money printing and interest rates held at very low rates for a long period was after 9/11/2001

and starting in 2002 ... the housing bubble started ... went parabolic ... and peaked in late 2006 early 2007
(my house tripled in value during this time)

then we all know what happened ... the great financial crisis and housing crash in 2008/2009

we are just repeating history

 

I am reminded of the boy who cried wolf. Being wrong doesn't mean it can't happen.

 

nice point!

 

I agree, and along the lines of one of your other posts, I don't see how we can continue to spend more while producing less. Excess liquidity helps, but can that really be be done indefinitely? I don't think so. We need to become a producing and fiscally sound nation, but with most corporations now global unlike in the 70's their incentive is with the cheapest labor so we can't rely on them to make us a producing nation (Hooray for the Boeing win though).

Unfortunately I don't see any sign of fiscal responsibility. In looking at the PM charts and the national debt chart, I would consider hyperinflation on its way barring a significant and sustained swing the other way.

 

We are on the same page. Until the USA and the rest of the world governments get their act together, PM's will continue to climb most likely.

 

I have to agree. In 2002 I had somebody tell me, "Boy, I'm glad I'm not just graduating college now!" Somebody else made this exact same statement to me last week.
I keep waiting to see this big turn around that's coming and what that may be but year after year passes and it doesn't come. What do you guys think the real unemployment numbers would be if you took out all city, county, state and federal govt. employees out of the equation? Unemployment would probably be 30-40% right now, just looking at the private sector.

20%. That's 1 in 5 homes (1.6 million) in Florida are sitting vacant. A once booming construction industry down there is gone. Everywhere from major cities to small towns are relying on infrastructure that is 60 to 100+ years old and crumbling! Look around the place!
I look around my town and see roads crumbling to pieces. In some areas, it looks like Detroit. Vacant housing, roofs falling in, junk laying around abandoned. This is all happening gradually. And it's happening everywhere. There's no money out there to really fix anything up in the private or public sectors. There are so many towns that if a natural disaster wiped them out, they wouldn't come back. Nobody would invest the money to re-build. There's no money in it.

My only point here is that things have/can deteriorate pretty badly and nobody will ever claim that we're "done in" as you say. That's not a defined point.

Gradually, we get used to a new normal. After people look at a ghetto for so long, they gradually forget what "nice, new, clean" is and after a while, their neighborhood doesn't seem that bad anymore. The same thing is happening with this nations debt problems. After you look at 14 trillion for so long, 20 trillion doesn't sound so bad. Then 50 trillion won't sound so bad. Eventually, people have been worn down and won't really know what "bad" is at any point. I believe many people on this board have fallen victim to this loss of perspective.

I don't know what will happen but there are many old people that don't regret being old at this period of time. That should tell us something.

 

In this case, the NIA is making a prediction about the future. So they have no points to discredit. Besides, I described above how they never addressed the condition I consider most important in making this type of forecast. All they do is list a few problems in the economic world and claim it supports their position. In this situation, I believe it is better to focus on their track record and past dealings with the SEC to evaluate their credibility.

 

I am very concerned about deficit spending. I am more concerned with permitting government officials to use a little slight of hand to focus the attention on government employee benefits as the cause of the problem and not their own actions. People died to secure collective bargaining rights in this country and it saddens me to see people support the termination of this right out of envy or the misplaced belief that it is the cause of the deficit problem.

 

Just who exactly DIED to "secure collective bargaining rights"?

They are not RIGHTS, they are privileges. Rights are endowed by our creator!

 

Well, he uses the term "rights" very very loosely.

 

http://www.post-gazette.com/pg/11065/1129711-109.stm

You may want to study a little American history. I know it is very popular today, partly due to Fox News, to side with the vast increases in government power that are occurring. Government has no power that was not specifically delegated to it by the people, not the other way around.

 

There is a big difference between "power" and "rights". The founders said that "rights" come from God. Once we start letting our government "give" us our rights, we are in big trouble. That is the kind of mindset that has been forgotten. However, I do see your point of view, we just simply do not agree, and never will. Why cheap shot Foxnews? Because they give a different point of view? I thought that was celebrated in this country?

 

Do you even watch Foxnews? If anything, they lean conservative and do NOT side with the "big government" croud.......

 

Historically, it has been the "God given Rights" aspect that have been used to justify Slavery and lack of Women rights, and many others.

So said as a member, I must also say that we are straying from the topic of the thread. So lets drop this direction and get back to discussing the feasibility or not of hyperinflation. This warning is given to myself as well as any other member.

Jim

 

I have a much better article on inflationl. Have you noticed that potato chip bags have much less stuff in them than before and cost more?

 

I have noticed "King Size" candy bars have gotten a little thinner as well...... That and the potato chips could be the "13th sign" as well.....

 

The IRS and Universal Healthcare are the "vast increases in government power" I believe you are referring to...not Fox News. Fox News specifically fights to uphold the ideal that...(as you so eloquently state) "Government has no power that is not specifically delegated to it by the people". It appears we are in complete agreement!! :cheers:

 

It's nice when people post an opinion article from a liberal professor to provide an unbiased view of the topic. Still no one has died FIGHTING for CB privileges.

Anyways, hyperinflation or not, I am confident that LIFE (i.e. Food and goods) is going to cost A LOT more in the near future. There are a variety of methods to prepare for this and NOT going overboard in any one area of preparation is the key, IMO.

 

I hope in a few years, or heck a decade, we all look back and have a good chuckle about how ugly our painting of the future was........ I doubt it though.