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Marc Faber "U S will default on debt or enter hyperinflation"

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posted on Feb, 9 2009 @ 06:10 PM
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CNBC interview, Marc Faber, said it like it is, he said the U.S. is going Zimbabwe! It shocked the host interviewing him.

He says there are economic schools in different parts of the world, and the U.S. is now under the school of Zimbabwe!





posted on Feb, 9 2009 @ 06:15 PM
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How long would it take for hyperinflation to kick-in? Months? Years?



posted on Feb, 9 2009 @ 06:16 PM
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reply to post by MOFreemason
 


Right after the Obama's bail out get approved, many experts believe that the nations will plunge within he next six months.



posted on Feb, 9 2009 @ 06:23 PM
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Geezus. Isn't this depressing watching the country go under without being able to do anything about it?

My wife told me to stop telling her what is going on today because I was depressing her. She asked why I never had any good news to tell her. My answer? "There isn't any."

She doesn't want to know how bad it is. I think this reflects on the rest of the population as well.



posted on Feb, 9 2009 @ 06:23 PM
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Everywhere I look analysts are saying that hyperinflation is coming.

This is truly frightening. When a box of cereal costs a few hundred bucks, there will be unrest.

If you're siting on cash, I guess it really is time to do something about that.

Any suggestions, anyone?



posted on Feb, 9 2009 @ 06:24 PM
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hyperinflation aint happening........at least it is a very small chance IMO and a long ways off........I believe a new monetary system would be set up before hyperinflation would occur.....perhaps U.S.A defaults on debt but no hyperinflation IMO.....plus NO Nation has ever PAID THERE DEBT BACK IN FULL

there is at least as good a chance they are trying to avoid a deflationary scenario from happening (by pimping inflation) ....not that deflation is WORSE than hyperinflation (it is surely not)from a middle class perspective.....but from a ELITE/INVESTOR class perspective future expectations for inflation must be kept high in order to stoke more demand for stocks and keep asset prices higher!!!!!!!!.....and keep consumer's spending......instead of waiting for better deals....this is B.S IMO........the biggest reason grocery's would be going up would be a cut in supply from lower global trade.....not more money supply CASH IS STILL KING

[edit on 9-2-2009 by cpdaman]

[edit on 9-2-2009 by cpdaman]



posted on Feb, 9 2009 @ 06:25 PM
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Originally posted by MOFreemason
How long would it take for hyperinflation to kick-in? Months? Years?


From other info I have read, it will be about mid summer, from my understanding, before all the printed money really kicks in.

BUT..... in saying that.

The same toliet paper purchased 3 months ago, at $18.00 at Sam's cost the same today..............BUT it is HALF THE QUANITY than 3 months ago.

So, that means it actually DOUBLED IN PRICE IN 3 MONTHS!!

Think about that one.......... I have been noticing huge jumps in prices at the grocery store!



posted on Feb, 9 2009 @ 06:27 PM
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So should be around the Summer/Fall period, leading into Winter so could provide for some seriously detrimental actions taking place. Honestly, I see the U.S. defaulting on it's debt and brokering a few deals with it's debtors. Only reason I even think of this is the other countries are currently worst off and China is as well, it just knows how to keep a tight lid on it. Russia used to but not anymore as you can see more and more protests.

As for why other countries would agree? DC will probably flex it's muscle and as we can all just nuke each other to hell, the Chinese will just say f-it and retreat clean up it's operation and begin it's own repairs. Which is probably what all the other countries would do at that point and everyone returns to the basics. Manufacturing, agriculture etc.

That's to say if TPTB don't decide to move it the other direction in which case the balls really in the air.



posted on Feb, 9 2009 @ 06:27 PM
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reply to post by loam
 


Yeah, what EVERYONE has been saying, protect your money now...........buy metals!!!



posted on Feb, 9 2009 @ 06:27 PM
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reply to post by questioningall
 


My wife and I were going to keep grocery store advertisements from back in October 2008 so we can compare prices in October 2009.

It doesn't seem as though prices have soared, as I expected them to do.



posted on Feb, 9 2009 @ 06:29 PM
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(hyperinflation) Aint happening.........the fed is scared of deflation right now......they are trying to raise inflation expectations


inflation benefits the investor class because they have first access to the printed money....that is why that fear deflation......but the real ploy is the transfer of liability's from the banks balance sheets to the gov'ts/ people's right now in order for bankers to collect full overinflated price (that they still have on there books) for there toxic debt's that private investors would only pay 25 cents on the dollar for.

[edit on 9-2-2009 by cpdaman]



posted on Feb, 9 2009 @ 06:32 PM
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Well hyperinflation is the result of too much money pumped into the system, depending how the Obama stimulus hit the streets that is the worries about hyperinflation.

The phenomena what first observed in Germany.

This is how it works.


Hyperinflations are caused by extremely rapid growth in the supply of “paper” money. They occur when the monetary and fiscal authorities of a nation regularly issue large quantities of money to pay for a large stream of government expenditures. In effect, inflation is a form of taxation in which the government gains at the expense of those who hold money while its value is declining. Hyperinflations are very large taxation schemes.
.

www.econlib.org...

America has the right pieces in place for this to happen in the near future.

Our nation is already spending out of control, money is needed to maintain those expenditures and when that money is starts to be pumped into the nation to pay the nations bills we will be heading for that hyperinflation.



posted on Feb, 9 2009 @ 06:34 PM
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reply to post by cpdaman
 


But aren't most examples of hyperinflation preceded by periods of deflation?

For example, this guy thinks so: Link.




Deflation can create Hyperinflation

It is no accident that many of the worst periods of hyperinflation are preceded by deflation. In fiat currencies with high levels of government debt, severe cases of deflation cause a loss of confidence in the nation's currency by shrinking the economy and making the government's debt appear increasingly unsustainable. The loss of confidence then causes the flow of money to speed up as individuals become desperate to exchange cash for real goods as fast as possible, producing hyperinflation.

As an example of deflation leading to hyperinflation, consider the case of the Weimar Republic. In 1920, Germany experienced a deflationary collapse, with the average citizen finding it harder and harder to get enough money for necessities. Banks, short of money, could not honor checks, and businesses were strapped for cash to buy materials and meet payroll. Fearing a collapse that would throw millions of workers out on the street, the German government desperately printed money in an attempt to re-inflate the economy. During this period, despite the government's money printing, the mark actually gained in value against foreign currencies, so that prices of imported goods fell by some 50%.

Eventually, as a result of the money supply's rapid expansion, the nation's massive foreign debt, and the shrinking economy, German citizens lost all confidence in their currency, and the Weimar Republic experienced one of the worst cases of hyperinflation in modern economic history. Billions of hoarded marks came out of hiding and entered the marketplace. The chart below tells the rest of the story.





[edit on 9-2-2009 by loam]



posted on Feb, 9 2009 @ 06:42 PM
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did you know what the unemployment rate was in germany that allowed hyperinflation to be an "acceptable social occurence" it was under 3% in the midst of hyperinflation. UNIONS had the leverage to get higher wages which allowed the velocity of money to increase so fast......

unions are dead and wage pressures are down in the U.S.......house prices are going down for the next 2 years at least.........and they are not hyperinflating back up.........95% of our money supply is CREDIT not paper fiat..........the same auther i believe (Eric D?) says that monetary supply is not the cause of hyperinflation but a loss of confidence in the Gov't ability to repay debt causes people to LOSE CONFIDENCE in the dollar............The U.S is a great POWER.......no matter what sort of recession /depression we go thu we will likely still have the World's biggest economy (because the rest are hurting as well) ......Hyperinflation is not in the cards for the next couple years AT ALL. mild inflation possibly by 2010..............the issue is not hyperinflation it Is Class Warfare

The outstand debt level dwarfs any measure of m3 it seems Helli ben would have to "print up" much much more money (steven keen says 25X) to make inflation a threat , otherwise people will be paying down there debt (debt to gdp ratio's are very high!) .......

[edit on 9-2-2009 by cpdaman]



posted on Feb, 9 2009 @ 06:43 PM
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Bingo!!!!loam we were already in the deflation during the holidays right after the first bail out to the financial institutions, right now still banks are leaching more money as they still can not deal with their debt that is up to trillions of dollars.

Now our own government can not deal with their own government spending without borrowing more money.

States are also running out money.



posted on Feb, 9 2009 @ 06:43 PM
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reply to post by loam
 


Besides that, the deflation period, we are in, the govt. is counting oil, vehicles, and large ticket items that have gone down.

BUT - they equate food in it too, BUT, food had increased at the beginning of Jan. up 18% from Sept. That is huge jump.



posted on Feb, 9 2009 @ 06:46 PM
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reply to post by cpdaman
 



Okay, I want you to come back here in mid July, and say that, I believe you may be shocked at what prices have become for our daily needs, in the way of food etc.

I know every single "honest" economist is saying we are going Zimbabwe with the current track we are on! It won't wait either- it will be this year.



posted on Feb, 9 2009 @ 06:52 PM
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posted on Feb, 9 2009 @ 06:52 PM
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We are definately heading that direction.



posted on Feb, 9 2009 @ 06:52 PM
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Sorry, hit the darn button by mistake ...

to continue that post ...


As the unemployment rate climes to a 26-year high, our government is seeking to replace the private sector's role in providing market based employment with mandates from Washington.




[edit on 9-2-2009 by cnichols]



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