U.S. Inflation to Approach Zimbabwe Level, Faber Says

U.S. Inflation to Approach Zimbabwe Level, Faber Says

bloomberg.com

The U.S. economy will enter “hyperinflation” approaching the levels in Zimbabwe because the Federal Reserve will be reluctant to raise interest rates, investor Marc Faber said. Prices may increase at rates “close to” Zimbabwe’s gains, Faber said in an interview with Bloomberg Television in Hong Kong. Zimbabwe’s inflation rate reached 231 million percent in July, the last annual rate published by the statistics office. “I am 100 percent sure that the U.S. will go into hyperinflation,” Faber said.

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[edit on 5/28/2009 by Erasurehead]

It is simple common sense that if the government prints huge amounts of money with nothing backing it that hyperinflation will happen. The mainstream media will continue to paint a rosey picture of the US economy. Everyone is being fooled into thinking that we are in recovery now. All they did was postpose the collapse with the bailout. They have inflated the "bailout bubble". When it bursts that will be it. There will be no more bubbles to inflate. The dollar is going to be worthless.

Faber has been right on the mark with most of his predictions on the economy. For him to say we might see inflation levels close to Zimbabwe sends shivers down my spine.

Will we end up having to bring a hefty bag full of cash to go grocery shopping in the near future? I'm putting my money in metals while it is still worth something. Good luck everyone. Hold on, it's going to be a rough ride.

bloomberg.com
(visit the link for the full news article)

Important topic needs a bump...

Zimbabwe’s inflation rate reached 231 million percent because they printed money with nothing backing it. Marc Faber is talking about hyperinflation approaching Zimbabwe levels here in the USA. I don't think it will quite be as bad as 231 million percent but even a fraction of that would be real bad. Any comments?