Tuesday, September 14, 2010

More Hyperinflation Fearmongering

John Williams of Shadow Stats is predicting hyperinflation 6 to 9 months from today. There is a link to the Shadow Stats blog in the Zero Hedge post.

From what I understand, Williams has been calling for hyperinflation for the last couple of years, consistently setting it in the late-2010, early-2011 date range. As mentioned in a previous post also from Zero Hedge, hyperinflation is created by a loss of faith the nation's currency, as opposed to the more common type of inflation caused by more dollars chasing fewer goods and escalating wages.

3 comments:

  1. If the stated value, of “Federal” Reserve notes, declines enough with respect to copper and nickel, the 1946-2010 U.S. Mint nickels, composed of cupronickel alloy, could become somewhat rare in mass circulation.

    The September 13th metal value of these nickels is “$0.0574114” or 114.82% of face value, according to the “United States Circulating Coinage Intrinsic Value Table” available at Coinflation.com.

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  2. Thanks for the link.

    And, yes, seriously, I'm collecting nickels. I've got a pretty good stockpile.

    I noticed gold jumped about $25 in one swoop earlier today. Silver looks to still be reasonable and might be a better store for most people at this point.

    I'm also collecting iron, steel, brass, and lead.

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  3. Hyperinflation is, first and foremost, a political event.

    Hyperinflation is so far out there that I don't even worry about it.

    Now, with respect to massive inflation (along the lines of 100% inflation over a brief perid of 6-10 years or so is entirely possible.

    But hyperinfation? No.

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