Can hyperinflation happen in the U.S.? You bet it can! Will it happen? Depends on what else goes on behind closed doors at the upcoming G20 meeting in London on April 2.
An increasing number of media institutions are reporting on the explicit possibility of hyperinflation in the USA: MSNBC; Global Research; ShadowStats; Economic Populist; Democratic Underground; Daily Markets; and even the Salt Spring News has set up a “Hyperinflation Watch” on the US.
This past month, Chinese Premier Wen Jiabao and Chinese Central Bank Governor Zhou Xiaochuan both took unprecedented steps toward the questioning of their US debt holdings. No other nation on the planet holds as many US dollars as China does (it used to be Japan, but China took the lead in September 2008). Thus, if China gets upset with their US dollar holdings it’s a big deal. Scholars like Niall Ferguson will tell you not to worry too much about this because of the very special, symbiotic relationship that “Chimerica” (a word Ferguson coined) possesses. In other words, China isn’t going to be dumping their US dollar reserves.
It has a better idea.
Zhou Xiaochuan proposed to create a new, alternative global reserve currency which would be administered by the IMF (International Monetary Fund) and allow for more global currency stability.
It’s a great proposal. It was rejected, but leaders have already said that the mere fact China put the proposal on the table has been a game-changer. China doesn’t want the spectre of global hyperinflation any more than Europe or Canada does. But that’s what’s being proposed at the upcoming G20: Geithner is trying to get the rest of the world to “stimulate” their economies along with the U.S.
Since I’m Canadian, and I know that 85% of our trade exports go to the U.S., I’m concerned that US policies and political pressure will also create some degree of hyperinflation in Canada.
Although we may not know how or how fast or when, or what will happen if it does occur, we can still take steps to improve our own “personal economies” and learn to protect our wealth from hyperinflation.
The theories put forth by Peter Schiff, Gerald Celente, Jim Rogers, Marc Faber and others are all being confirmed. We’d like to think that the Obama adminstration in particular is incapable of allowing the US to hyperinflate, but we can’t be so sure. Economically speaking, this is a period of unprecedented measures and decision-making. It’s best to consider all the possibilities.
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{ 2 comments… read them below or add one }
Governments all over the world want all their citizens to become super rich quickly, they shed crocodile tears on seeing their citizens having less purchasing power! They choose the easy way, decide to reduce the interest rate and give their people free credit.
The problem is all people are not same!!
We have lazy dumb idiot people in unproductive environments And we have hardworking intelligent honest and wise people in third world environments! Dumb and lazy people cannot be made rich by governments & its free money! Some one has to pay it back to the hardworking people from whom their Govt. has borrowed this money??
But in my opinion this is the push they are going with towards a one world government, one currency, one central bank.
This “crisis” is the perfect reason because people have to choose and they most definitely will choose the new world order.