http://www.survivalblog.com/2010/01/letter_re_hyperinflation_appea.html
Letter Re: Hyperinflation Appears Certain for the US Dollar
from SurvivalBlog.com by James Wesley, Rawles
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Katrina and Haiti are examples of either predictable events or unpredictable instantaneous events as would be a single nuclear event such as a “suitcase bomb” . Each of these has a number of things in common, but the most significant is the limited geography associated with each. The biggest difference between Hurricane Katrina and the Haitian earthquake is the lack of adjacent unaffected land. In the case of Katrina there was a place to bug out to, on foot or by vehicle, without walking into hostility, and the time to do it. In Haiti, there is no warning and no place to go unless you are a long distance swimmer, but it will be remedied and controlled. There will simply be more deaths and casualties along the way. There will be survivors and they will by and large return to the way things were before the quakes.
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Excellent observation. Geographic disaster zone where help can come from the outside … … eventually. The trick will be to survive until help arrives.
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Our society is so intertwined that any number of small subtle events can build up to and then spark these events. As with Katrina, those signs are out there. You are being warned, and just have to identify what they are and be on the outlook for them. I would compare Haiti to a localized small nuke; no warning, nothing to see coming, it just happens.
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It could be a stock market crash, droughts, government failure to renew its short term debt, political upheaval, increased taxes or something as obvious as hyperinflation caused by continued Fed intervention into the economy. It is likely that all of these things and many others, in their own small way, will collectively be the straw that breaks the camel’s back. There is no way to tell which one or ones and when it is likely to happen. History tells us that it will happen.
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I could ramble on forever about all of these things, but consider that hyperinflation is absolutely in our future. It’s caused by the Federal Reserve Bank and our government. The only way to decrease the value of what we owe is to print more money, or go to war. Printing more money simply dilutes the value of the dollar in this country. We buy oil with those dollars, and the less they are worth, the more dollars it takes to buy it. All things in our world are directly related to oil. The more it costs, the more everything else costs. Most of our goods are imported from foreign countries. The less the dollar is worth, the more dollars it costs to buy them. As the dollar decreases in value and it takes more dollars to buy the same old necessities, your paycheck never increases proportionately, and if the company you work for fails to make a profit, you’ll be unemployed. That $2 gallon of milk may soon cost $5 or even $10 dollars. As in Zimbabwe, $1,000 or more dollars. Sometimes it can’t be had at any price. Our money today has decreased dramatically in value and purchasing power since the Federal Reserve began in 1913. If you are my age, you’ll remember 15 cent per gallon gasoline. At that time minimum wage was $1.25 per hour. I could buy 8.3 gallons of gas for every hour worked. Today, using the same comparison, I could almost buy only 3 gallons for one hour worked at today’s minimum wage. This applies to all commodities. It’s only going to get worse, much worse.
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The government is giving away more money than we provide to it. It’s generating unbelievable debt. Taxes have to be increased. This will decrease how much money you have to buy the more expensive goods and services. Watch the M2 and M3 money funds. They are the gauge of how much money the government is borrowing. Watch the roll-over or default of the short term debt at the end of this year. Where will the money come from to pay the $2 trillion in short term debt? Why would China or anyone else loan us this money when even they can se that they will not get repaid in anything other than de-valued dollars.
You will never see the truth about any of these topics reported in the MSM, and there is a dearth of connecting the dots, even on the Internet. As you read about these things, ask yourself, “what does it really mean” and how does it link the the other current happenings. I can’t list all of the inter-related subjects that have an effect on this, but can only advise you to pay attention. If you don’t, it will sneak up on you and you won’t be ready. – Tom H.
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A very astute set of observations imho.
I’m not so sure now with the elections in VA, NJ, and MA, that disaster might be avoidable.
With gridlock on the horizon, we have a chance to allow the market to correct the economy on its own without “help” from the gooferment.
If the congress critters were serious people, they would recognize the terrible effect of the annual deficit and the national debt. Glenn Beck has been doing yeoman’s work in calling national focus to it.
I’d suggest that each year, we should have a national surcharge on income tax. I’m not for an income tax, property tax, or any kind of tax, but we have to save the ship. I’d rather be a passenger rather than Robinson Crusoe. So let’s start! Someone has to go thru the Federal Budget, line by line, a la that great movie “Dave”, and have a “fire sale”. Department of Education, out. Department of Agriculture, out. Price Supports, out. Foreign Aid, out. You get the idea. After we are pared down to the “bare bones”, it’s time to “fix” the tax code. Identify the poverty line in every zip code. Income minus the poverty amount. And, then take -steal – rob 10%. Then add 1% for the national debt. 1% for the last year’s deficit.
It would be a way back.
No deficit; no need for the surcharge. No debt; no need for a surcharge. That’s paying off the credit card.
Then, we have to look at all the unfunded mandates?
Maybe financial collapse is inevitable?
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