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U.s. Inflation To Approach Zimbabwe Level

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U.S. Inflation to Approach Zimbabwe Level, Faber Says (Update2)

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By Chen Shiyin and Bernard Lo

May 27 (Bloomberg) -- The U.S. economy will enter “hyperinflation” approaching the levels in Zimbabwe because the Federal Reserve will be reluctant to raise interest rates, investor Marc Faber said.

Prices may increase at rates “close to” Zimbabwe’s gains, Faber said in an interview with Bloomberg Television in Hong Kong. Zimbabwe’s inflation rate reached 231 million percent in July, the last annual rate published by the statistics office.

“I am 100 percent sure that the U.S. will go into hyperinflation,” Faber said. “The problem with government debt growing so much is that when the time will come and the Fed should increase interest rates, they will be very reluctant to do so and so inflation will start to accelerate.”

....

Further:

http://www.bloomberg.com/apps/news?pid=206...FA&refer=us

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....

“I am 100 percent sure that the U.S. will go into hyperinflation,” Faber said

Never trust anyone who claims to be 100% sure.

Edited by Modigliani1

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Hyperinflation is a very loose term. I dont think he means 200 million percent inflation, but the fed loosing control of inflation until the problem becomes inflation is highly likely.

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So Faber is 100% convinced on hyperinflation and therefore 100% on the inside regarding what Bernanke & Co. will do (which of course he isn't). Ex-Fed Chairman Paul Volker is on the Obama team and if anybody wants to know where Volker sits on this subject then read his history. In the Carter years they hung effigies of him in Washington because he kept rates so high for so long to stamp out inflation. Therefore Faber is a self-seeking Jim Rogers clone and should be ignored.

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Hyperinflation is a very loose term. I dont think he means 200 million percent inflation, but the fed loosing control of inflation until the problem becomes inflation is highly likely.

Sorry mate but anybody who spells loses with two o's looses my respect.

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Guest มร หล&#3
Gonna be a lot of deflation first...............

Not for long I think.

Manufacturers have been quick to cut production to demand levels. Farming is struggling to get credit for investment which will increase food prices next season.

The big one being bailout money finding it's way to commodity markets to leverage a bubble in human needs to off-set real estate bubble losses.

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So Faber is 100% convinced on hyperinflation and therefore 100% on the inside regarding what Bernanke & Co. will do (which of course he isn't). Ex-Fed Chairman Paul Volker is on the Obama team and if anybody wants to know where Volker sits on this subject then read his history. In the Carter years they hung effigies of him in Washington because he kept rates so high for so long to stamp out inflation. Therefore Faber is a self-seeking Jim Rogers clone and should be ignored.

dream on

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Not for long I think.

Manufacturers have been quick to cut production to demand levels. Farming is struggling to get credit for investment which will increase food prices next season.

The big one being bailout money finding it's way to commodity markets to leverage a bubble in human needs to off-set real estate bubble losses.

Nassim Taleb "the black swan", explained that when you took the average height of 100 americans, or the average weight, you would get a mean figure which couldnt be distorted by "black swans" or individuals from "extremistan" i.e. no one is a 100 metre giant, no one can drastically adjust the mean. However, in wealth terms, you can have a Bill Gates in a line up of 100 Americans and his wealth would be 99.99999% of those 100 people.

he explains that because we live in "extremistan" and that Bill Gates and these other multi billionaires inhabit our financial world, that extreme changes can happen in regards to finance, so based on what happens to the finances of the multi billionaires, extremes can happen.

So its hard to say what will happen to the average person in our world because of the heavy influence of the wealthy that have the capacity to drastically change the world depending on what happens to their wealth.

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Guest มร หล&#3
Nassim Taleb "the black swan", explained that when you took the average height of 100 americans, or the average weight, you would get a mean figure which couldnt be distorted by "black swans" or individuals from "extremistan" i.e. no one is a 100 metre giant, no one can drastically adjust the mean. However, in wealth terms, you can have a Bill Gates in a line up of 100 Americans and his wealth would be 99.99999% of those 100 people.

he explains that because we live in "extremistan" and that Bill Gates and these other multi billionaires inhabit our financial world, that extreme changes can happen in regards to finance, so based on what happens to the finances of the multi billionaires, extremes can happen.

So its hard to say what will happen to the average person in our world because of the heavy influence of the wealthy that have the capacity to drastically change the world depending on what happens to their wealth.

I started that book, then left it on a plane.

We are going to be skint.

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Hyperinflation is a very loose term. I dont think he means 200 million percent inflation, but the fed loosing control of inflation until the problem becomes inflation is highly likely.
U.S. Inflation to Approach Zimbabwe Level, Faber Says

I think he does.

Oh, and...

Faber, who said he’s adding to his gold investments

Let's try changing a few words, shall we....

"U.K. House Price Inflation to Approach Zimbabwe Level, Mrs. Wilson Says. Mrs. Wilson, who said he’s adding to her property investments"

What's good for the goose is good for the gander ;)

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I think he does.

Oh, and...

Let's try changing a few words, shall we....

"U.K. House Price Inflation to Approach Zimbabwe Level, Mrs. Wilson Says. Mrs. Wilson, who said he’s adding to her property investments"

What's good for the goose is good for the gander ;)

wilsons and faber

interesting comparison

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zimbabwe had 10-20% inflation for 15 years, you wont get hyperinflation straight away you will get high inflation for 5 to 10 years first....

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Guest มร หล&#3
Maybe or maybe not

if it happens as those in charge dont come to their senses

it will be fast - caused by a currency crisis not by an uptick in trade

inflation_782970.jpg

Yikes!!!

The rate of acceleration causes a shuddering.

Tangible assets only. Part gold and . . . . houses? :ph34r:

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Yikes!!!

The rate of acceleration causes a shuddering.

Tangible assets only. Part gold and . . . . houses? :ph34r:

yep

seems like britain has not experienced this yet

that was before jonah brown was in charge

United States

During the Revolutionary War, the Continental Congress authorized the printing of paper currency called continental currency. The easily counterfeited notes depreciated rapidly, giving rise to the expression "not worth a continental."

Between January 1861 and April 1865, the Lerner Commodity Price Index of leading cities in the eastern Confederacy states increased from 100 to over 9000.[20] As the U.S. Civil War dragged on the Confederate States of America dollar had less and less value, until it was almost worthless by the last few months of the war.

Yugoslavia

Yugoslavia went through a period of hyperinflation and subsequent currency reforms from 1989 to 1994. The highest denomination in 1988 was 50,000 dinars. By 1989 it was 2,000,000 dinars. In the 1990 currency reform, 1 new dinar was exchanged for 10,000 old dinars. In the 1992 currency reform, 1 new dinar was exchanged for 10 old dinars. The highest denomination in 1992 was 50,000 dinars. By 1993, it was 10,000,000,000 dinars. In the 1993 currency reform, 1 new dinar was exchanged for 1,000,000 old dinars. But before the year was over, the highest denomination was 500,000,000,000 dinars. In the 1994 currency reform, 1 new dinar was exchanged for 1,000,000,000 old dinars. In another currency reform a month later, 1 novi dinar was exchanged for 13 million dinars (1 novi dinar = 1 German mark at the time of exchange). The overall impact of hyperinflation: 1 novi dinar = 1 × 1027~1.3 × 1027 pre 1990 dinars. Yugoslavia's rate of inflation hit 5 × 1015 percent cumalative inflation over the time period 1 October 1993 and 24 January 1994.

Hungary

Hungary went through the worst inflation ever between the end of 1945 and July 1946. In 1944, the highest denomination was 1,000 pengő. By the end of 1945, it was 10,000,000 pengő. The highest denomination in mid-1946 was 100,000,000,000,000,000,000 pengő. A special currency the adópengő - or tax pengő - was created for tax and postal payments [1]. The value of the adópengő was adjusted each day, by radio announcement. On January 1, 1946 one adópengő equaled one pengő. By late July, one adópengő equaled 2,000,000,000,000,000,000,000 or 2×1021pengő. When the pengo was replaced in August 1946 by the forint, the total value of all Hungarian banknotes in circulation amounted to one-thousandth of one US dollar. [15] It is the most severe known incident of inflation recorded, peaking at 1.3 × 1016 percent per month (prices double every 15 hours) [16] . The overall impact of hyperinflation: On 18 August, 1946 400,000,000,000,000,000,000,000,000,000 or 4 × 1029 (four hundred octillion [ short scale ] ) pengő became 1 forint.

One source [2] states that this hyperinflation was purposely started by trained Russian Marxists in order to destroy the Hungarian middle and upper classes. The 1946 currency reform changed the currency to forint. Previously, between 1922 and 1924 inflation in Hungary reached 98%.

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Guest มร หล&#3
yep

seems like britain has not experienced this yet

that was before jonah brown was in charge

Looks like we're going to the 'gowld shop' after all dear. :angry:

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Maybe or maybe not

if it happens as those in charge dont come to their senses

it will be fast - caused by a currency crisis not by an uptick in trade

inflation_782970.jpg

Great chart, fascinating.

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Never trust anyone who claims to be 100% sure.

I'm 100% certain that everyone on this forum is going to die one day. On the other hand I am not convinced this statistic applies to me.

As for hyper inflation, all fiat currencies guarantee this outcome, it is a matter of when, not if. For the US it will be sooner rather than later, that is within most of our lifetimes (and definitely within mine if I am immortal as I believe).

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