Thursday, August 18, 2016

2010′s Perils and Potential

December 31, 2009 by · Leave a Comment 

By Deepcaster, GoldSeek

To see 2010’s Potential we must first consider the Main Perils.

Hyperinflation Nears

The intensifying economic and solvency crises, and the responses to both by the U.S. government and the Federal Reserve in the last two years, have exacerbated the government’s solvency issues and moved forward my timing estimation for the hyperinflation to the next five years, from the 2010 to 2018 timing range estimated in the prior report. The U.S. government and Federal Reserve already have committed the system to this course through the easy politics of a bottomless pocketbook, the servicing of big-moneyed special interests, gross mismanagement, and a deliberate and ongoing effort to debase the U.S. currency. Accordingly, risks are particularly high of the hyperinflation crisis breaking within the next year…

Numerous foreign governments have offered unusually blunt criticism of U.S. fiscal and Federal Reserve policies in the last year. Both private and official demand for U.S. Treasuries increasingly is unenthusiastic. Looming with uncertain timing is a panicked dollar dumping and dumping of dollar-denominated paper assets. Such is the most likely event to trigger the onset of hyperinflation in the year ahead…

The U.S. has no way of avoiding a financial Armageddon…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…”


John Williams, Shadow Government Statistics, December 2, 2009

These Expectations of Hyperinflation (and a contracting Economy) are unfortunately supported by the Realities of Total U.S. Federal Obligations (National Debt plus downstream Unfunded Liabilities).

2009 Total Federal Obligations (TFO per GAAP) are $74.6 Trillion (according to Shadowstats.com), up from $65.5 Trillion in 2008.

The 2009 National Debt Component (of TFO) is $11.9 billion, up from $10 billion in 2008.

Over the long term, these obligations cannot possibly be repaid without a substantial further devaluing of the U.S. Dollar. Unfortunately, when the devaluing picks up steam the denouement could look quite like the Weimar Republic, or Zimbabwe.

Read more….

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