Hyper-Inflation Has Arrived

Zero Hedge reports:

One of the benefits of America finally seeing what Zimbabwe went through as it entered hyperinflation, ignoring for a second that the Zimbabwe stock market was the best performing market, putting Bernanke's liquidity pump to shame, is that very soon everyone will be naked, once companies finally realize they have no choice but to pass through surging input costs. And while some may be ecstatic by the S&P's modest rise YTD, it is nothing compared to what virtually every single agricultural product has done in the first month of 2011. To wit: Corn spot up 7.76%, wheat up 5.63%, Rice up 10.08%, Hogs up 10.16%, Sugar up 5.64%, Orange Juice up 3.33%, and cotton.... up 17.08%. That's in one month!

A monthly increase of 2.2% in prices equates to a 26% annual increase in prices.

Annual inflation >26% over a period of three years is considered hyper-inflation by the International Accounting Standards Board. This trend in accelerating inflation rates in commodities has been on going for the past several months now.

It shouldn't be too much longer now.

The real unrest will start to unfold when food prices rise out of reach for the average consumer.

America is about to go on a much needed diet plan, courtesy of the Federal Reserve and our criminal government.

Oh, speaking of food:

400K increase in food stamp participation during November, putting the grand total at 43.6 million people out of 310 million receiving food stamps.

You should all be maxing out your credit cards right now to buy up bulk food, silver, gold, ammunition, and firearms.

*disclaimer:

I am not a professional investor and the advice I offer is my opinion only. With any investment comes risk, as well as the possibility of reward. Accept or ignore my advice at your own peril.

reply to post by mnemeth1


Ahh the irony...www.abovetopsecret.com...

reply to post by mnemeth1


Also concerning: ytd, adjusted for inflation the major indicies have NOT gained.

Adjusted for inflation consumer spending is DOWN .. we bought less for more..

Adjusted for inflation average falling house price suffered even worse losses..

And average wages increased .3%, which adjusted for inflation is a 5-10% (depending on what inflation measure you use) decrease in purchase power..

Which of course leads to deflation.

In zimbabwe the people had massive spikes in income.. granted it was nowhere near the increase in goods..

We are seeing negative wage growth in all areas but the poor (autto minimum wage increase gave us the .3% increase) and the super rich (not included in such a report) so the dollars in our accounts are stagnet and the prices of goods are shooting through the roof, giving us a deflatesd buying power..

Which will lead to credit defaults..
Which lead to foreclosure..
Which lead to loss of wealth..
Which hurt the banks..

Which.. wtf.. is this 2007 again?

reply to post by mnemeth1


I bet this winter storm sure won't help things come down! A deep freeze is hitting Texas. I'm sure heating oils and crude will be up greatly after this. I'm sure this is damaging plenty of food crops to make for even higher costs as supply dwindles. I'm sure this is keeping many people from going to work or travelling for a few days, so that is going to hurt.

February looks to be even more dramatic than January was.

How right you are. I've been saying this for sometime now... even tried to post some warnings here. And we've only just begun.

At my farm supply store...whole corn just went up another .20 cents to $9.19 per 50lb bag. One year ago, whole corn was $6.49 a bag...that's almost $3.00 in less than a year. All of our feeds have gone up equally...on the high end, some of our name brands that were about 12.00 a bag are now pushing 18.00 per 50lb.

Further, all of our steel products...fencing, gates, feeders, etc continue a monthly increase.

All of our pet foods, dog and cat foods are not showing an increase on the label, but they are retooling and packaging from 50lb bags to 40 lb bags.

My wife and I are sitting down tonight and ordering seed for our upcoming garden. We have a hobby farm and have tried to make enough off of it to feed ourselves and pay for the feed we use for our animals.... this year, we will try to actually make some money and also start growing our own feed...corn, beans, sugar beets, sillage. It's getting so expensive that if we don't grow our own feed, we simply won't be able to afford it...

the Hobby Farm is now a Full Time Farm...lol.

My suggestion to all of you is to grow your own food...get heirloom seed as you can save seed this year for next year... go ahead and start cutting back DEEP... find any means legal to make some extra money... I sell firewood, eggs, goats, and pigs. what talent do you have that will make money?

Learn to preserve food, start putting food in the pantry, freezing, canning, etc.

When something goes on sale...shoes, pants, everyday items you can't make...buy double and put the extra away... that way, next year you can get the extra pair of shoes out of the back of the closet.. or give the extra coat to one of your kids...etc.

If you want to know whats coming...find someone that made it through the Depression and listen.

I really hope I am wrong... if i am, what to do with all of those size 11 shoes?...lol

I have to contribute to this thread as I see food prices increasing as we speak.
The 'dribble down' economics of this is just starting.
First, the price goes up in the markets...
Then the price of feed goes up, for cows, pigs and horses,etc...
Thirdly, the price of market foods goes up to accommodate the price spike in farming...
Lastly the overbearing price to manufacture the processed foods spikes...

Then all out food riots.
Really don't want to see that happen.
But it seems inevitable.

It's too bad this seems to be occurring, the markets are fluctuating higher and higher:
Source
I've watched wheat, corn and soy rise a few percent these past few market days alone.

If possible, grow your own food, but from first-hand experience, don't waste.
The hardest thing to do, in my opinion, is long-term storage.

this is scary stuff because wages are going down, we have so many people out of work, the employer knows he can find somebody to take your place fast... i am a master mechanic been doing it for over 20 years now i got a job 4 years ago applyed at 40 places and had 35 offers many making more than i was before by 4 dollars a hour, well i have allways been able to find a job and quit one day out of the blue... bad idea i applyed at over 200 places and got 8 job offers making 1/2 what i was before... talk about a real wake up call and that was 1 and 1/2 years ago before it really got ugly... i would hate to be looking for work right now. i always say if you cant beat them join them...

reply to post by grrrrrrr


This is what happens when people feel entitled to take other peoples property at gun point.

Fiat currency laws require guns.

Central banking regulations require guns.

Taxes requires guns.

Bailouts of failed financial institutions and favored industry requires guns to first take from those who work for a living.

etc.. etc.. etc..

Now we shall reap what we have sown.

what do you guys think is going to happen? is it going to be like end of the world stuff, people fighting other people for food, or is it going to be a harder dip where we get out and everyhing will get back to normal?

I see a mass printing of money to kill the EURO and USD to make a one world Currency. Its the only logic to the madness. Its controled and they know the end result. This is being done on perpose. Im scared and its growing everyday. im getting ready for it but there is only so much you can do in such a short time.

Originally posted by camaro68ss
what do you guys think is going to happen? is it going to be like end of the world stuff, people fighting other people for food, or is it going to be a harder dip where we get out and everyhing will get back to normal?

I see a mass printing of money to kill the EURO and USD to make a one world Currency. Its the only logic to the madness. Its controled and they know the end result. This is being done on perpose. Im scared and its growing everyday. im getting ready for it but there is only so much you can do in such a short time.

edit on 1-2-2011 by camaro68ss because: (no reason given)

A complete break down in the ability for people to intermediate trade.

That means society will be reduced to a state of barter - like the middle ages.

Swapping chickens for pickles as Dr. Block likes to say:


I recently watched a video on the state of peasants in Zimbabwe.

They pan for gold flakes in muddy water in order to find enough gold to buy some bread to eat.

reply to post by camaro68ss


More than likely the PTB will use the coming events as a way to implement a one-world-currency to level international trading, as international trading, ie Globalism, is impeded by the myriad of currencies. This of course will result in the impoverishing of the US, or i should say, most of the US.. For international corporations to make any further headway, the global economy will need to be completely leveled with borders falling down and international standards in regulation.

At least, that's what I think the Globalist will push for. Whether it succeeds, I don't know, but I am certain there are many that want this.

At the very least a total international debt restructuring will be needed within the next few years.. if countries don't work together, isolationist, nationalism and plain fear could give rise to an increase in global conflicts. that's not to mention the wide spread disorder throughout the world caused by food shortages. The US I doubt will ever see food shortages.. we still throw away more food than many countries consume in a year.. our Government still routinely destroys crops.. and our diet of fast food doesn't consume much high quality food anyways. Americans are like goats, we can live off garbage.

i see it it already..2 dollars a dutch? wtf!!!!!!!!!

I think Jim Sinclair coined the phrase, "OE to infinity" as the Fed's only viable strategy, and he was one of the first to speak candidly about the very real potential for a hyperinflation in this country.

This criminal cabal refused to allow the system to clear & settle in 08, favoring taxpayer funded bailouts for their banker-buddies instead. Now they have to keep the $ flowing or the wheels fall off, which they eventually will anyway. Any of this QE showing up in your bank account ? Me either.

Where's the money going ?

Fed's Hoenig says QE3 "may get discussed"

Feb 1 (Reuters) - The Federal Reserve could debate extending its bond-buying program beyond June if U.S. economic data prove weaker than policymakers expect, Kansas City Fed President Thomas Hoenig said.

Another round of bond buying "may get discussed" if the numbers look "disappointing," Hoenig told Market News International in an interview published on Tuesday. - Source

Got Gold ?

Well whether you do or not, lets hope we never see $5000 an ounce. That's a world nobody wants to live in.

the hyper inflation will continue to be hid by the false statistics at the BLS and by the re-packaging
of product

this is noticable in the food stuffs i see on the grocery shelves, the weights of products that
used to be 16 oz are now 12 oz or even 10 oz for the same price...

even chicken breasts are being repackaged to include some of the backbone & rib---to make
the cut larger & weigh more...but what your getting is inedible bone and extra skin which was
once sent to the pet food processers...

one thing overlooked was the rollback of Dividends by almost 100% of the dividend paying
companies on the stock exchange...they used the financial crisis of 2008 to reduce
dividends ...in many cases up to 80% less and are only slowly increasing dividends by
1% increments, to always be ahead in retaining their profits, to the distress of the shareholders.

reply to post by St Udio


The first I noticed the food size difference, I bought a redbaron pizza for a night in, I get home and take it out of the box.. the "new look" was a 1/3rd smaller pizza for the same price.

But I've noticed this with other goods as well. Just like at christmas I noticed even after "50%" off the prices of things are still crazy high.

Its just insane that we appear to be repeating to a T the years 2006-2008 .. when we saw $120 oil, worst food crises, and severe inflation with wage stagnation.

Meanwhile, back at the ranch...

Has anyone noticed that we have become fully entrenched in Orwellian doublethink since the beginning of 2011? Package sizes haven't decreased... people claimed to have purchsed a lb of coffee for $10 years ago, but they were mistaken as it has always been sold in 12 oz packages (for $10, no less)... A dozen eggs was always $3.00, it was just that overproduction caused stores to dramatically cut prices to $2.00 a dzn a few years ago in hopes of not wasting the eggs, and now thanks to more conscientious production methods that wanton waste is no longer a concern... and the real kicker, Hosni Mubarak is a bloodthirsty dictator who has always been at odds with "America's Ideals" and has always been considered such by all Americans. For proof of that last one, check the history of the 'dictators' list on wikipedia. Shortly after the US government did a 180 on their opinion of Mubarak, he was added to the list. Curious, seeing as how the media and politicians in DC are speaking of him as if he were the second coming of Idi Amin.

We are at war with Eurasia, we have always been at war with Eurasia and have always been allied with Eastasia.
some days pass
We are at war with Eastasia, as we always have been and our lifelong allies Eurasia are by our side. Anyone who remembers otherwise is wrong and an enemy of the state.

Originally posted by burdman30ott6
Meanwhile, back at the ranch...

Has anyone noticed that we have become fully entrenched in Orwellian doublethink since the beginning of 2011? Package sizes haven't decreased...

This is NOT a 2011 thing.

Actually, packaging sizes have decreased for years now.
So has the size of the products in the same packages...i.e., a bar of soap.
Dial Soap has shrunk
That's from 2007!
Same price, by the way, smaller size.

Look at cereals:
Here is a great .pdf file that was written in 2007 about the drastic cut to the size of packaging...
You should really read that .pdf file.


So I either have to think you are being sarcastic, or oblivious...
Either way, the price of food is increasing and 'they' are hiding the hyperinflation?
Sounds to me like a lose/lose situation for consumers.

reply to post by havok


You completely misunderstood my point, havok. The 2011 reference was in regards to the dramatic shift the media has taken in reporting things, not inflation itself. This topic, when discussed, prior to this year, generally had acknowledgement that "yes, packages are shrinking" albeit in some bizarre "the package is smaller, but the quantity of foodstuffs inside is the same" manner. What I'm talking about is that just in the past couple of months and especially apparent since Egypt fell to chaos, is that the media is actually presenting negative changes in a manner which buries the change part entirely. They are 100% compliant with the powers that be to do everything they can to not acknowledge the tough times we're in.

reply to post by havok


This is also proof that the economic hard times were already in progress prior to 2008. The entire economic system was bloated and over-inflated. The stock market and real estate bubbles were just the easiest to spot. It is a little more difficult to spot things such as shrinking package sizes. Soft drinks have been shrinking as well, bottles and cans are getting smaller.

Look how things have changed in 55 years. Wages have gone up about 700%, but other things have gone up by 1000% to 30,000% !! No wonder it takes two incomes to barely make ends meet these days!

Comments made in the year 1955!

I'll tell you one thing, if things
keep going the way they are,
it's going to be impossible to
buy a week's groceries for $10.00.

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'Have you seen the new cars
coming out next year' It won't
be long before $1, 000.00 will
only buy a used one.'


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'If cigarettes keep going up in
price, I'm going to quit; 20 cents
a pack is ridiculous. '


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'Did you hear the post office is
thinking about charging 7 cents
just to mail a letter.'


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'If they raise the minimum wage
to $1.00, nobody will be able to
hire outside help at the store.'


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'When I first started driving, who
would have thought gas would
someday cost 25 cents a gallon.
Guess we'd be better off leaving
the car in the garage.'


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'I'm afraid to send my kids to the
movies any more. Ever since they
let Clark Gable get by with saying
DAMN in 'GONE WITH THE WIND',
it seems every new movie has
either HELL or DAMN in it.'


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'I read the other day where some
scientist thinks it's possible to put
a man on the moon by the end of
the century. They even have some
fellows they call astronauts
preparing for it down in Texas.'


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'Did you see where some baseball
player just signed a contract for
$50,000 a year just to play ball'
It wouldn't surprise me if someday
they'll be making more than the
President. '


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'I never thought I'd see the day
all our kitchen appliances would
be electric. They are even making
electric typewriters now. '


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'It's too bad things are so tough
nowadays. I see where a few
married women are having to
work to make ends meet. '


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'It won't be long before young
couples are going to have to hire
someone to watch their kids so
they can both work.'


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'I'm afraid the Volkswagen car
is going to open the door to a
whole lot of foreign business.'


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'Thank goodness I won't live to
see the day when the Government
takes half our income in taxes. I
sometimes wonder if we are
electing the best people to
government.'

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'The drive-in restaurant is
convenient in nice weather,
but I seriously doubt they
will ever catch on.'


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'There is no sense going on short
trips anymore for a weekend. It
costs nearly $2.00 a night to stay
in a hotel.'


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'No one can afford to be sick
anymore. At $15.00 a day in
the hospital, it's too rich for
my blood.'

'If they think I'll pay 30 cents
for a hair cut, forget it.'

meh I dunno much about this stuff with inflation, but i know this much 5 years ago i paid 89 cents for a dozen eggs, about 2 bucks for gas about a buck for bread, and like 2 bucks for a gallon of milk. Staples.

Now i am paying this week considering the prices change each week, by the way about 2 bucks for a dozen eggs 3 bucks for gas and i heard by the summer it will be 5 here in the states and that is a gallon by the way. About 2 bucks for good wheat bread or more and about 3 bucks for a gallon of milk.

now here is the truth and i guarantee it these prices will keep rising.

So i agree with the thread title. Also the thread is kinda trollish but its ok. I replied to it, anyone who would argue this is a naive person.