Bernanke Speaks- *Prepare For Hyperinflation*

reply to post by Arcade425


Depends on what you call "hyper" inflation. Technically high inflation is anything over 5% .. we are officially under that. But.. unofficially.. we've been over it for the past 12 years straight minus 2009.

So then would "hyper" inflation be above the unofficial rates? Which would be somewhere around 10%/y?

I just paid $4.05/g for gas, the highest I've ever paid, we are looking at a 30+% increase in the span of just a few months on the core commodities, which will in turn increase the shipping, trucking, production and manufacturing of goods. Meaning, if oil holds a sustained increase over the past 6 months averages, by June the core consumer items will start increasing. But it won't effect CPI, because the index is also regulated by purchase, which people won't do because they can't..

In other words, if you want to be technical, we are already seeing severe inflation of nearly every good that .. surprise.. isn't counted in inflation reports like CPI. Because of these number games there will never be "hyper" inflation.

IMO .. what the past 3 months shows to me is the Fed has lost control over it's policies direction, and while I believe they won't ever loose full control, the momentum has turned toward inflation, which will deflate the economy.. But.. stuck between a rock and a hard place, to use anti-inflationary methods would result in the defunding the government, which couldn't operate without the QE of the Fed.

Saw it, am somewhat hopeful, this is the start of things to come. I am downloading it just in case it "dissapears".

www.youtube.com...

Originally posted by alchemist2012
I agree but those jack wagons on wall street are getting major gains wtf is goin on.

The DOW and S&P are rising to quickly and will come crashing down this fall. It wont be good for any of us.

reply to post by Rockpuck


History has proven that rinting all this money will be very similar he hyperinflation in the Weimar Republic Germany. The inflation was caused by the government issuing a flood of new money, causing prices to rise.

One day everything was fine.The next day hell was unleashed.

The correlation between deficits and inflation is astounding,, deficits lead to inflation and uncontrolled deficits lead to uncontrolled inflation, rather Hyperinflation where it takes a days wage or more to buy a loaf of bread. Gold will be the only hedge but it's too high to buy now, for many.

Hey I think we been hoodwinked,bamboozled,run amuk.had the wool pulled over our eyes,The dollar is doing a double gainer right now.73.1 last check.didnt some one say that 72 is the critical support level.

can anyone chime in on this.

Originally posted by alchemist2012
Hey I think we been hoodwinked,bamboozled,run amuk.had the wool pulled over our eyes,The dollar is doing a double gainer right now.73.1 last check.didnt some one say that 72 is the critical support level.

can anyone chime in on this.

Yeah just noticed that. Sure is taking a dive. I hear 72 is the support yes.

reply to post by mayabong


Say u still in the 7th ward...and yes it is but i hear 70 is support/freefall pm me let me know where u at.

reply to post by Rockpuck


When gas reaches 6 bucks a gallon I'm interested in learning if electric scooters are street legal or you can trick them out somehow. In Britain it's already over 7.00 a gallon I heard. We are catching up with them.

Originally posted by Fiberx
It's the plan and it's working. Exports are soaring thanks to a weak dollar. The relative value of dollar denominated debts is falling. I've outlined the "secret" plan (which isn't hidden at all, just not specified) for over a year now, in various threads.

Jobs are being created at an accelerating pace as well.

The plan is brilliant, if you are a banker or corporated executive.

Of course the middle and lower class won't see a benefit at the end of the tunnel. Wages continue to rise below the rate of inflation, while Wallstreet sees the benefits of recored corporate profits thanks to unprecedented tax breaks, inflated prices at home and increased export potential in foreign markets.

It's the last part of that equation that has and continues to be, the fatal flaw in American social and economic principles.

Same songs, just a different album cover.

I gave you a star because I think you are seeing things that many others are missing. However, there are also benefits for the Middle Class or perhaps it would be better termed the Ownership Society. Anyone who has a loan with a fixed rate for a car or a house or a college education will benefit from the inflation on those items. The hope is that for your average middle class family they will save enough on those items to at least break even and possibly even pull ahead. As the mortgages become more affordable in the new normal there will be fewer defaults. Those who own houses that depreciated will be better able to pay off the difference and trade up to a larger better house when their family is ready. All of those combine to help stop the housing crisis which was so tied to the meltdown itself.

It's not good for people who don't own. They get no sudden appreciation of assests. Their rent will probably go up so that their inflation adjusted salary still won't be enough to cover all their needs given the climb in price for every day commodities.We suffer the consequences so they can create and then KEEP more wealth.


And, the people doing that know it. But, I really don't think they are doing it to be mean.
I think a society where we make and export very little is doomed to fail. The comparative advantage of labor cost in the rest of the world can only we countered by a weakened dollar. Yes, everything that is imported will cost more. So eventually we will import less. Export more and employee more Americans.

The transition will be the rought part. In addition to survival food, an even more realistic hedge for the future (imho) is to buy or set terms for loans for real items now before the inflation kicks into high gear.

Good thread though. And, yeah, China....
I think they have reasons to let us get a way with it but man we sure are pushing our luck....

reply to post by wonderworld


Yes it is well over 6 GBP a gallon but thats not what bothers me I'm on a low income and have noticed in the last 18 months my food bill has increased by over 50% and that is with me being more frugal in what I buy. So excuse me if I listen to what the government say inflation is running at and say surely you jest Mr Cameron for your breath has the distinct aroma of bovine faeces.

Usually when Benanke speaks the stock market falls sharply but not lately. Not like when Hank Paulson and Benanke spoke. They are immune somewhat. I see a pattern developing in the VIX similar to 2008 crash. I still know it will happen this fall, unless something sets gravity in motion sooner. This isnt a typical business cycle, cant they see that?

reply to post by alchemist2012


The critical support level has already been breached. Increasing the debt limit doent enlarge the nation's financial commitments it allows the government to fund obligations already legislated by Congress. Hitting the debt ceiling would hamstring the government's ability to finance its operations, like providing for the national defense or funding entitlements such as Medicare or Social Security.

I think theyve already cut organ transplants. Does anyone know if this will be attached to raising the debt ceiling? It will come with lots of nasties.

reply to post by wearewatchingyouman


nah he aint raising interest rates for a while

first step would be to stop re-investing maturing treasury bonds and actually reduce the size of fed balance sheet

this would = stocks dropping

the big question everyone seems most concerned about and bernanke hinted at with ....."making sure investors inflation "expectations" stay anchored. is who will pick up the slack and buy treasury's when the fed steps back june 30 and then only has the reinvesting maturing security's which = aprrox purchases say 25b/ month instead of 100/B like they are now.

I think foreign Central banks may step in for the good of the whole system to try and make some purchases of treasury bonds. EVERYONE IS HOPING this SH*T SHOW of corruption ends soon but wait ....why would foreign central banks step in and fill the slack....? b/c the world is based on the dollar as reserve currency and this is crucial for stability and the treasury bond market backs the dollar and this is in the best interest of several foreign central banks

Originally posted by Rockpuck
reply to post by Arcade425

 

I just paid $4.05/g for gas, the highest I've ever paid, we are looking at a 30+% increase in the span of just a few months on the core commodities, which will in turn increase the shipping, trucking, production and manufacturing of goods. Meaning, if oil holds a sustained increase over the past 6 months averages, by June the core consumer items will start increasing. But it won't effect CPI, because the index is also regulated by purchase, which people won't do because they can't..
.

IMO .. what the past 3 months shows to me is the Fed has lost control over it's policies direction, and while I believe they won't ever loose full control, the momentum has turned toward inflation, which will deflate the economy.. But.. stuck between a rock and a hard place, to use anti-inflationary methods would result in the defunding the government, which couldn't operate without the QE of the Fed.

fed insists inflation will be transitory lol. they must believe/imply that commidity's will reverse when qe 2 ends

I think FCBanks step in to fill the void by the fed RE; treasury purchases for the most part

Originally posted by JustXeno
reply to post by wonderworld

 

Yes it is well over 6 GBP a gallon but thats not what bothers me I'm on a low income and have noticed in the last 18 months my food bill has increased by over 50% and that is with me being more frugal in what I buy. So excuse me if I listen to what the government say inflation is running at and say surely you jest Mr Cameron for your breath has the distinct aroma of bovine faeces.

edit on 27-4-2011 by JustXeno because: (no reason given)

Food costs should never be more than 25% of a persons wages. A 50% increase in food? Wow! I noticed at least a 20% increase on milk and other things. Transportation is a problem when the gas gets that high. Everything goes up.

reply to post by Arcade425


I do not believe the fall of the dollar will come in one single day. It would rather be a continuous process, making it hard for the prepared people to know when it is the right time to put your guard up. One shock could happen somewhere in June this year,but I rather see a slow death of the $... bit like a continuation of the last 2 months!

reply to post by wonderworld

History has proven that rinting all this money will be very similar he hyperinflation in the Weimar Republic Germany.

Umm .. I will respectfully disagree. There were very specific reasons as to why that specific currency did what it did. Specifically what caused it to rise as fast as it did, is that it was a currency not backed by gold, compared to currencies that were backed by Gold. While trying to pay debt to Gold bearing countries, the currency automatically starts adjusting in a perpetual cycle. It was specifically because the English and French demanded the reparations (London Ultimatum) in either Gold or another currency such as the Sterling Pound, USD, Frank.. that the German currency went to hell so fast. It had absolutely nothing to do with their debt to revenue/gdp or any other economic indicator.. it had everything to do with the fact that Germany escaped the war the looser but with an intact economy, so to destroy the economy they expected Germany to release or sell assets to cover the cost.

But so what if it does go into hyper inflation? Debt gets wiped clean and you toss that currency out the window and start with a new one. Not like it was backed by anything.

Our situation and the hyper inflation experiences of both Zimbabwe and Germany have absolutely nothing in common.

And if we got to that point, honestly I think how much your little dollars are gunna buy should be the least of your worries.

Dollar falling fast this evening 72.88 last time i checked.

reply to post by mayabong


I dont feel sorry for him. He is a scoundrel. He wrecked our economy to protect the banksters and Wall Street. He privatized, in essence the losses of private firms and socialized their bad decision making.

Many people knew at the time that the price for bailing them out could well be the destruction of our dollar, and he did it anyway. Corporations, Bankers and Wall Street arent bailing America out, at all. Many of them are paying NOTHING in taxes while making record profits.

He screwed us the people and America the nation and he is lucky he hasnt been hung.