Friday, May 01, 2009

Hyper-Inflation: The Cure that Kills

Obama's $2 trillion deficit for the coming fiscal year budget is just the beginning of the exponential growth of deficit spending and a rapid and repetitive doubling of the national debt over a short period of time. Hyper inflation will be hardest on the elderly and others on fixed budgets. Obama had to destroy social security in order to save it -- except nothing is being saved.
With an unprecedented deficit that’s approaching $2 trillion, this budget proposal is a surefire prescription for hyperinflation. So every senator and representative who votes for this monster $3.6 trillion budget will be endorsing a spending spree that could very well turn America into the next Weimar Republic. For those too young to remember, that was the period in Germany in the years between the two world wars when people needed wheelbarrows full of money to buy a loaf of bread.

In a 1993 interview, Harvard University law professor Friedrich Kessler offered a chilling portrait of the Weimar Republic: “It was horrible. Horrible! Like lightning it struck. No one was prepared. The shelves in the grocery store were empty. You could buy nothing with your paper money.”

Thanks to the expanding profligacy on Capitol Hill, a version of such economic hell will likely happen here, according to two prominent economists. Johns Hopkins University professor Steve Hanke notes that the Federal Reserve’s balance sheet “has more than doubled in size since August. Unless the Fed shrinks its balance sheet,” he warns, “... inflation will roar back with a vengeance.” _SFExaminer
Behind the egocentric and narcissistic solipsist, is anyone at home? Hello?

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