Peter Schiff: The Beginning of the End - "our economy will now face death by hyperinflation", page 1
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Topic started on 11-10-2008 @ 04:44 AM by Phazon

Peter Schiff: The Beginning of the End - "our economy will now face death by hyperinflation"


www.newmogul.com
In the end, by refusing to allow market forces to work their cure, our economy will inevitably die from the disease. Our economy will now face death by hyperinflation, which will cause a complete loss of confidence in the dollar and result in prices and interest rates skyrocketing out of sight. The evaporation of our national wealth will lead to civil unrest, food and energy shortages, and the possible imposition of martial law.
(visit the link for the full news article)


reply posted on 11-10-2008 @ 05:00 AM by Rinorino2
reply to post by Phazon


the way I see it the bailout is an attempt to buy time-basically keep blowing up the bubble rather than let it pop while the Govt thinks of what to do next.


reply posted on 11-10-2008 @ 11:51 AM by whiteraven
Hyper Inflation, if Schiff is correct( he has a good track record), would be very scary to live through.

Germany did go through Hyper Inflation pre WW2.

I recently connected a old folks home in Southern Saskatchewan to the internet. One lady stands out in that she was from Germany and had been part of the Hitler Youth.


As I set up her cable modem we struck up a conversation concerning where she had farmed with her husband, how she came to Canada from Germany and how long she had had her little apartment since her husband had died.

As I got her PC on line she had mentioned how she missed many things about Germany so I went to the ATS sight as I knew of a thread that had some pictures of the mountains of Germany.

Also, in the thread their was pictures of Hitler looking through a telescope at a certain mountain.

Anyways, as I taught her some basics concerning the internet she told me that she had been part of Hitlers youth.

She said that Hitler had been viewed as a saviour by the many of the adults of Germany since he had brought prosperity after a period of Hyper Inflation.

She said that things had gotten so out of control before Hitler took power that many many had lost farms, property, factories had closed etc...and that the German currancy became worthless until Hitler began to take control.

Here is a PBS look at Germany during Hyper Inflation

Before World War I Germany was a prosperous country, with a gold-backed currency, expanding industry, and world leadership in optics, chemicals, and machinery. The German Mark, the British shilling, the French franc, and the Italian lira all had about equal value, and all were exchanged four or five to the dollar. That was in 1914. In 1923, at the most fevered moment of the German hyperinflation, the exchange rate between the dollar and the Mark was one trillion Marks to one dollar, and a wheelbarrow full of money would not even buy a newspaper. Most Germans were taken by surprise by the financial tornado.




But the bourgeois habits were very strong. Ordinary citizens worked at their jobs, sent their children to school and worried about their grades, maneuvered for promotions and rejoiced when they got them, and generally expected things to get better. But the prices that had doubled from 1914 to 1919 doubled again during just five months in 1922. Milk went from 7 Marks per liter to 16; beer from 5.6 to 18. There were complaints about the high cost of living. Professors and civil servants complained of getting squeezed. Factory workers pressed for wage increases. An underground economy developed, aided by a desire to beat the tax collector.




The publisher Leopold Ullstein wrote: "People just didn't understand what was happening. All the economic theory they had been taught didn't provide for the phenomenon. There was a feeling of utter dependence on anonymous powers -- almost as a primitive people believed in magic -- that somebody must be in the know, and that this small group of 'somebodies' must be a conspiracy."
www.pbs.org...


If we face the monster of Hyper Inflation it may pave a road to a Hitler again.

.....THE thing that struck me concerning the old lady was the fact that she did not hate Hitler in the way I was taught too....she still looked up to him somewhat it seemed.

Being someone who does not fully understand economics some questions I have would be...

1. Would the whole of the Western World undergo Hyper Inflation or just the US

2. I am sure that the Fed and the Executive Branch are aware of this. Will they take measures to stop Hyper Inflation or will they fan the flames of Hyper Inflation?



[edit on 11-10-2008 by whiteraven]


reply posted on 11-10-2008 @ 12:18 PM by whiteraven
reply to post by Gateway



My two questions are answered in the interview you posted....

1. Would the whole of the Western World undergo Hyper Inflation or just the US

2. I am sure that the Fed and the Executive Branch are aware of this. Will they take measures to stop Hyper Inflation or will they fan the flames of Hyper Inflation?




Listen to the posted podcast. Schiff, who works with Ron Paul, paints a realistic picture of the near future.
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