John Williams of Imperial Death March
John Williams of "Inflation" Death March
Posted on 09/14/2010 7:23:11 AM PDT by TigerLikesRooster
John Williams Sees The Onset Of Hyperinflation In As Little As 6 To 9 Months As Fed "Tap Dances On A Land Mine"
09/14/2010 08:22 -0500
John Williams, arguably one of the best trackers of real, unmanipulated government data via his Shadow Stats blog, has just released a note to clients in which he warns that hyperinflation may hit as soon as 6 to 9 months from today. With so many established economists and pundits seeing nothing but deflation as far as the eye can see, and the Fed doing all in its power to halt the deleveraging cycle, both in the open and shadow economies, what is Williams' argument? Read on. Incidentally, even if some fellow bloggers disagree with Mr. Williams' assesment, we believe it is in our readers' best interest to have them make up their own mind on this most critical economic development.
Systemic Turmoil is Unthinkable, Unacceptable but Unavoidable. Pardon the use of the Aerosmith lyrics in the opening headers, but the image of tap-dancing on a land mine pretty much describes what the Federal Reserve and the U.S. Government have been doing in order to prevent a systemic collapse in the last couple of years. Now, as business activity sinks anew, much expanded supportive measures will be needed to maintain short-term systemic stability. Such official actions, however, in combination with global perceptions of limited U.S. fiscal flexibility, likely will trigger massive flight from the U.S. dollar and force the Federal Reserve into heavy monetization of otherwise unwanted U.S. Treasury debt. When that land mine explodes — probably within the next six-to-nine months, the onset of a U.S. hyperinflation will be in place, with severe economic, social and political consequences that will follow. The Hyperinflation Special Report is referenced for broad background.
(Excerpt) Read more at zerohedge.com ...
P!
Didn’t John Williams compose “The Imperial Death March”?
“Hyper-inflation”? Doubt it.
Run-away inflation? Oh, yes.
Get seeds for your vegetable garden early. They may be short supply next spring.
Is this the first time he’s predicted this? Has he been wrong all the other times?
Agreed. The dollar will lose maybe 5/6 of its buying power by 2012 - and that’s terrible, but it isn’t hyperinflation.
The dollar could come back from a 5/6 loss, assuming a change in government in 2012. And I think we can assume that.
ping
The exact opposite of what Warren Buffet (and Obama) says.
Williams has constantly predicted hyperinflation for at least the past two years. He has consistently pegged late 2010 - early 2011 as the most likely dates for its onset.
“’Hyper-inflation’? Doubt it.
Run-away inflation? Oh, yes.”
Hyperinflation is runaway inflation. They are what the english language calls synonyms.
Interesting article...thank you for posting.
However - if by hyperinflation he simply means a situation where people suddenly run away from the dollar and buy commodities like there’s no tomorrow - then he’s right.
Its the Zimbabwean or Weimar republic version of hyperinflation which won’t happen. Not to America anyway.
I think the dollar will 'inflect' - a sudden devaluation that will wipe out unprepared members of the middle class - but then the dollar value will remain more or less stable.
'Hyperinflation' is usually used for an absurd level of runaway inflation, in the sense of "an extra zero on the currency every week". Whereas 12 to 20% inflation would be what most people think of as runaway inflation.
Hyperinflation is also used by some commentators for the sudden drop-then-stop devaluation I've described above. We probably need a different term for this though.
We could use 'PEMEX-ification', because something very similar happened to the Mexican currency when the state's assets in the form of PEMEX lost most of its value. But that's never going to catch on. Because, hey, Mexico.
John Williams? I really loved his Star Wars soundtrack....NOT!
.
My take is the cost of things we buy will go waaaay up and the cost of labor will sink. If you need a 'thing' get it now - if you need 'work done', put it off.
I pulled out all my home equity and refi’d below 5% fixed.
I hope to pay it back with Baraqqi minibucks.
Inflation is here, now. You can see it everyday, IF you look for it Time to pay attention again folks.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.