Ok, i believe we are heading toward hyperinflation and I know some of you dont believe it. Its funny that this is getting talked about as much as housing was in early 2005. http://www.elitetrader.com/vb/showthread.php?s=&threadid=43224&perpage=6&highlight=housing rolling&pagenumber=1 I mean the conversations are almost exactly the same. People saying things like houses are an asset and they wont drop in value because people "have to have a place to live" and things like that. Here is a quote from SteveD back in 2005. "Most owner-occupied homes are sold for reasons such as: job loss, divorce, job transfer or desire to "move up". NOT because of some drop in "value". Think about it?? Nice home, two kids in neighborhood school, church nearby, neighbors, etc. You come one day and say "gee, honey" I heard the people down the street sold for $15,000 less than their asking price!!! Get the kids in the car, we're getting the hell out of here right now. Doesn't happen that way, boys and girls. Sorry to be bad news to you housing bears. Anyway...i just think that the difference bewteen housing & hyperinflation is the same thing....instead of talking about people spending more on housing than they can afford, we are talking about the government spending more on bailouts than the taxpayer can afford.
Marc Faber has been talking about hyperinflation for a while now, and his opinion is probably worth something, his timing my be off sometimes, but he's quite good at general trends.
The Iranian situation is interesting. They have been big in counterfeiting USD for decades. They might see the current crisis as an opportunity to flood the world with counterfeit dollars and exacerbate the liquidity crisis.... I wonder how much control the US has over dollars that never visit our shores?
Counterfeiting sort of explains why these mice can roar and walk wide between the knees the way they do..
The counterfeiters are in Washington DC, guarding the henhouse, if you haven't noticed. 5 to 10 yrs out he will be correct. This year not, but longer term there is no alternative.
Incidentally, that is the timeframe he mentions. Also said he think inflation will shoot up to 20-25%? That does not sound like hyperinflation, but borderline close.
Inflation will remain low, or negative (deflation) Banks "print" more money than the Fed (fractional lending), and now banks are just not overlending.