Posted on 03/05/2009 6:17:40 PM PST by Free ThinkerNY
During the past five months, the money supply in the United States has almost tripled, increasing by 271 percent, according to the Federal Reserve Board.
Have car sales tripled? Home purchases? Consumer spending? Corporate investment? Not only have they not tripled, but they have all declined more sharply than they have since at least the recession of 1981-82, and perhaps since the Great Depression.
So where is the money? If it isn't being spent, where is it?
It is being parked, squirreled away. Consumers are using it to pay down their credit-card balances, pay off their mortgages, reduce their student loans, make the payments on the car sitting in the driveway — not the one in the dealer's lot. Businesspeople are buying T-bills, investing the money and saving it. They aren't spending, either.
But one day, this recession, despite Obama's best efforts, will end and things will begin to look up again. Then we can expect all of this money to come out of its parking space and get back on the highway of commerce. All at once. The inevitable result will be double-digit hyperinflation.
Since the spending and borrowing splurge is not confined to Washington but is being mimicked all over the world, the inflation will not strike just one country but will be global in scope.
(Excerpt) Read more at newsmax.com ...
Inflation is going to skyrocket.
In fact it is unavoidable.
And unless Obambi starts making the RIGHT choices and stop this insane spending spree, youll be able to use the dollar as toilet paper very soon because that will be about all it will be worth.
It wasn’t ever money in the first place!
Like where did all the money from the housing market go? All these people losing, where did the money go?
It never existed!!!
It was the government’s plan to provide minority housing without having to foot the bill. They scammed their way out of paying for it for the past decade or so (since Clinton era’s reconfiguration of CRA), by securitizing the debt and passing the losses off to unsuspecting investors, and now everything has come crashing down.
Only kooks and crazies worry about money and inflation. It’s not sexy, like war, at all.
“And unless Obambi starts making the RIGHT choices and stop this insane spending spree, youll be able to use the dollar as toilet paper very soon because that will be about all it will be worth.”
looking out 5 years, and assuming no catastrophic scenarios, devaluation of the dollar is my single biggest concern.
I wonder what factors would prevent a rise in gold under that scenario. Excessive central bank selling?
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