John Williams has updated his
Hyperinflation Report for 2011.
This is must-read material. Sit down and have something strong to drink at hand before you read it.
His original prediction was for onset of a full-bore hyperinflation sometime between 2010 and 18.
His 2010 update moved that to the next five years.
Since then we've had
- the Fed’s formal monetization of U.S. Treasury debt aimed at debasing the U.S. dollar;
- the sharpest post-World War II annual decline in broad money growth;
- the pronouncement of an official end to the 2007 recession despite no meaningful recovery;
- passage of the hugely expensive Obamacare;
- continuance of 2 acknowledged wars, at least 2 unacknowledged wars, and start of a new unofficial war in Libya
- mid-term elections
- submission of a federal budget that proposes spending $3 for every $2 in revenue
- months where federal spending was over 3 times revenues
- Social Security and SSDI entering permanent deficits, requiring additional funds from the Treasury
- clear and growing signs of a flight from the US dollar as a safe haven by other nations and wealthy individuals
- Gold rising (dollar falling) from $1100 to $1500 per ounce
- Silver rising (dollar falling and non-wealthy people responding) from $34 to well over $50, before being driven back to $38 by manipulating the trading rules
He now anticipates the onset of hyperinflation between March 2011 and one year from now. That's right, it may already be underway.
The U.S. economic and systemic solvency crises of the last two years are just precursors to a Great Collapse: a hyperinflationary great depression. Such will reflect a complete collapse in the purchasing power of the U.S. dollar, a collapse in the normal stream of U.S. commercial and economic activity, a collapse in the U.S. financial system as we know it, and a likely realignment of the U.S. political environment. The current U.S. financial markets, financial system and economy remain highly unstable and vulnerable to unexpected shocks. The Federal Reserve is dedicated to preventing deflation, to debasing the U.S. dollar. The results of those efforts are being seen in tentative selling pressures against the U.S. currency and in the rallying price of gold.
The early stages of the hyperinflation would be marked simply by an accelerating upturn in consumer prices, a pattern that already has begun to unfold in response to QE2.
Physical gold (sovereign coins priced near bullion prices) remains the primary hedge in terms of preserving the purchasing power of current dollars. In like manner, silver is in this category. Also, holding stronger major currencies such as the Swiss franc, Canadian dollar and the Australian dollar, likely are good hedges (see Financial Hedges and Investments. ).
In terms of survival on a day-to-day basis, U.S.-based individuals should be building a store of goods in preparation for a manmade disaster, much as they would for a natural disaster such as an earthquake. Economic activity probably would devolve to a barter system, but such could take months to become fully functional (see Barter System.).
The time for preparation is nearly over. The hall is rented, the orchestra is not only engaged, it's warming up. You can hear the music if you listen. Soon we shall see who can dance.
Peace,
Silver
Author
Topic: This is the way the world ends (Read 211527 times)