By: André Guimarães - from BRAZIL

André Guimarães - from BRAZIL — Sat, 28 Mar 2009 20:51:26 +0000

Global hyperinflation may happen. Japan and UK are printing money like US. If everybody sell UK and US debt the rest of the world end in domino. Hyperinflation is not 20% per year. Is 20% per day. And this finish with all. Economy recovery don’t occur in this scenario, and so US wouldn’t become a country like Mexico, US would become a country like Congo. Anual inflation limit is less than 8-9%. In this scenario, an inflation upper of this can be the trigger to hyperinflation, that begins overnight. Thus Fed would have to print money forever to government pay what it don’t get because tax revenues end. This occurs because “relative prices” among things end with the disorganization of all. The only book about Brazilian Inflation I wrote in 2000 (The Globalization and 30 years of indexation in Brazil – A Globalização e os 30 anos e indexação no Brasil). Inflation in this level like may be happen in US is like pregnancy. If begin, don’t stop more. Indeed the fear is what is blocking for while the worst. In 21th century and in First World big inflation or hyperinflation is anything as if Hitler resuscitate. Big inflation (for US standard) like 10%-20% per year induces hyperinflation automatically. In this scenario would be “END GAME” like Gerald Celent told. Maximum inflation rate in US must stay less than 6% in a year (real inflation). We may see another 1789 revolution if Geithner’s plan fail, and walk to unknown, to anything ever no seen in the history. G-20 summit must work.

By: Curt

Curt — Wed, 25 Mar 2009 16:44:21 +0000

The US is by far the largest debtor in the world and just last week Ben Bernanke said he was going to print 1.2 trillion dollars to monetize the some of our debt. The world will soon be looking to sell their dollars, and when they do, the inflation will be upon us.

Comments on: US Hyperinflation or Global Hyperinflation?

By: André Guimarães - from BRAZIL

By: Curt