Some are saying that hyperinflation, (the likes of which have been seen in third world dictatorships like Mugabe’s fascist Zimbabwe), is just around the corner.
Doug Ross @Journal (always a great place for cheery economic news) reports: The U.S. has no way of avoiding a financial Armageddon:
Bankrupt sovereign states most commonly use the currency printing press as a solution to not having enough money to cover obligations. The alternative would be for the U.S. to renege on its existing debt and obligations, a solution for modern sovereign states rarely seen outside of governments overthrown in revolution, and a solution with no happier ending than simply printing the needed money. With the creation of massive amounts of new fiat dollars (not backed by gold or silver) will come the eventual destruction of the value of the U.S. dollar and related dollar-denominated paper assets.
What lies ahead will be extremely difficult, painful and unhappy times for many in the United States. The functioning and adaptation of the U.S. economy and financial markets to a hyperinflation likely would be particularly disruptive. Trouble could range from turmoil in the food distribution chain to electronic cash and credit systems unable to handle rapidly changing circumstances. The situation quickly would devolve from a deepening depression, to an intensifying hyperinflationary great depression.
American Thinker: 2010 Will Be Worse
The year 2010 is likely to be the pivotal year where pundits stop referring to the recession and begin openly talking about a depression.
Our economic problem is rather simple to describe: There is too much debt relative to income and/or wealth.
Read the whole thing…the unsettling conclusion:
The possibility of losing our form of government is a real risk under any of the alternatives. So is civil unrest and strife. All are probably more likely under alternative 1 because of the corrosive effects of high inflation combined with a depression.
Beware the turn of the calendar. Things are going to get interesting, and probably very quickly.
Scary looking charts at both locations.
And just to remind everyone, once again, Tea Partiers scrambled and began screaming NOOOOOOO! to Obama’s insane spending sprees starting in February 2009. Yes, this problem has been years in the making, (with liberals deserving the brunt of the blame), but Obama made a bad situation worse, cut off escape hatches, and hastened our demise.
Thanks to Retired Geezer for the cartoon!