Bernanke Speaks- *Prepare For Hyperinflation*

Originally posted by Rockpuck
reply to post by wonderworld

 

History has proven that rinting all this money will be very similar he hyperinflation in the Weimar Republic Germany.

Umm .. I will respectfully disagree. There were very specific reasons as to why that specific currency did what it did. Specifically what caused it to rise as fast as it did, is that it was a currency not backed by gold, compared to currencies that were backed by Gold. While trying to pay debt to Gold bearing countries, the currency automatically starts adjusting in a perpetual cycle. It was specifically because the English and French demanded the reparations (London Ultimatum) in either Gold or another currency such as the Sterling Pound, USD, Frank.. that the German currency went to hell so fast. It had absolutely nothing to do with their debt to revenue/gdp or any other economic indicator.. it had everything to do with the fact that Germany escaped the war the looser but with an intact economy, so to destroy the economy they expected Germany to release or sell assets to cover the cost.

But so what if it does go into hyper inflation? Debt gets wiped clean and you toss that currency out the window and start with a new one. Not like it was backed by anything.

Our situation and the hyper inflation experiences of both Zimbabwe and Germany have absolutely nothing in common.

And if we got to that point, honestly I think how much your little dollars are gunna buy should be the least of your worries.

I beg to differ. Yes today’s world is far different , more complex and interrelated, more global. But as nations stagger to their feet, dealing with blows of the global financial crisis, the world’s financial institutions, global corporations and individual people also have learned the same kind of survival behaviors that could tip the scale from contraction to inflation to world staggering hyperinflation.

In Weimar Germany, when hyperinflation started it initially slowed down buying consumer goods because they felt that the prices weren’t normal, and that they should soon fall back to some level of normalcy but instead prices continued to rise. They were forced to pay higher prices. Now this is happening all around us. I know that Ben Bernanke is saying that high prices are due to commodities, and that they will come back down. But I doubt that you can come up with a single time that he’s ever made an accurate prediction. Not only Precious metal prices but we now also have flight of Capitol, a huge Swiss bank is leaving the US and even wrote a book called “Farewell America“, explaining that the new bank regulations that the Obama government are not worth the trouble. We can all assume energy prices will skyrocket.

Actually all it would take is a US bond market crash. I can go on and on about the similarities. Here is something I read recently.

This was also true in Zimbabwe, a dramatic example of runaway inflation. The crisis dated back to 2001, when Zimbabwe defaulted on its loans and the IMF refused to make the usual accommodations, including refinancing and loan forgiveness.

Yesterday, Boston University economics professor Laurence Kotlikoff stated on U.S. television that he believes that the U.S. bond market could crash at “any day now” and warned that the U.S. would see something akin to a Weimar Germany-style hyperinflation if/when it transpires. The reason behind Kotlikoff’s forecast is that the U.S. has too much debt and too many obligations that it cannot realistically payback or meet without having to resort to large-scale money printing, which devalues the U.S. dollar.

prophecyproof.blogspot.com...

Originally posted by Rockpuck


But so what if it does go into hyper inflation? Debt gets wiped clean and you toss that currency out the window and start with a new one. Not like it was backed by anything.

What if you have no debt and do have savings in dollars? Dont you essentially come out a total loser in that situation?

Hasn't Glenn Beck been warning us about this for the past year or so. Stock up on food people.

reply to post by this_is_who_we_are


Glen Beck. If he has only been warning people for a year, he is way behind the times.

Anyone with sense knew that hyperinflation and the dollar plummeting in value was the most likely outcome of the bailout plan.

Originally posted by Illusionsaregrander

Originally posted by Rockpuck


But so what if it does go into hyper inflation? Debt gets wiped clean and you toss that currency out the window and start with a new one. Not like it was backed by anything.

What if you have no debt and do have savings in dollars? Dont you essentially come out a total loser in that situation?

I keep coming back to the same scenario of the guy who cant afford his charge cards, so he illegally maxes them out knowing in advance he will file bankruptcy. This is what our government is doing to clear the slate and watch the donimos fall. It will be catastrophic! Yet easier than paying the debt.

reply to post by Illusionsaregrander


I got that wrong. He's actually been warning us about it for a number of years:

A Guide to Hyperinflation
www.glennbeck.com...

Glenn’s Predictions: Glenn has been saying for years that the country is at risk for hyperinflation. Read the transcripts below:

11/24/10: Glenn and Damon Vickers (www.glennbeck.com...)

8/13/09: Glenn Beck: Where Are the Tough Questions About Health Care Reform? (www.glennbeck.com...)

10/15/08: Glenn warned listeners about hyperinflation two years ago (www.glennbeck.com...)

We’re “BROKE!”

While these articles, videos, and links should get you started in understanding our economic problems and hyperinflation, one of the best ways to educate yourself is to check out Broke: The Plan to Restore Our Trust, Truth and Treasure by Glenn Beck. Packed with great stories from history, chalkboard-style teachable moments, custom illustrations, and Glenn Beck’s trademark combination of entertainment and enlightenment, Broke makes the case that when you’re traveling in the wrong direction, slight course corrections won’t cut it—you need to take drastic action.

Originally posted by this_is_who_we_are
Hasn't Glenn Beck been warning us about this for the past year or so. Stock up on food people.

I stocked up in 2008. To buy that same amount now would be 50% higher. Ive been watching the bulk food prices skyrocket, as well.

Anyone here on ATS or even those non-members who read this knew years ago to stock up and visit the survival forums. Some think it's BS but most know the consequences of sitting back waiting for Uncle Sam to deliever a loaf of bread to your door in an emergency. Something big like this would cause Martial Law. Meaning closes gas stations, grocery stores, etc. Stock up on gas too. It costs the same amount of money to keep your car on full as it is on empty, actually less expensive these days.

reply to post by wonderworld


But, for older people with little or no debt and savings accounts wont this essentially wipe them?

I agree that this may work out great for the most irresponsible, my concern is for those who have been responsible, and who no longer work and so will not be getting paid at a higher rate. (people on fixed incomes or who are living on savings) What would happen to them?

reply to post by this_is_who_we_are


That makes him a little smarter. This is exactly why I was so opposed to the bailouts in the first place. I didnt see how that could end in anything but the dollar becoming essentially worthless. And then watching the government spend like drunks on a binge with someone elses credit card supporting wars that only really benefit multinational corporations with interests in the mid east reinforced my opinion that they knew they were going to collapse the dollar.

I suspected that it was part of a larger plan to strip the US of sovereignty and lock us into a NAU and a new currency when some demons disguised as knights on white horses ride in to "save" us..................for a price.

Originally posted by Illusionsaregrander
reply to post by wonderworld

 

But, for older people with little or no debt and savings accounts wont this essentially wipe them?

I agree that this may work out great for the most irresponsible, my concern is for those who have been responsible, and who no longer work and so will not be getting paid at a higher rate. (people on fixed incomes or who are living on savings) What would happen to them?

Well,,, Yes but we seen half or more the wealth of retirees wiped out in 2008. This would wipe us all out and I assume the G-20 has a back-up plan and one we wont like. I wonder if people actually think Ben Bernanke can stop this. He isnt about to tell the truth. We saw what happened in 2008 with the electronic bank run that almost cleaned us out in less than 1 hour. I wish I had the answers. I'm no expert but I think having silver or gold would be good and using the "bank of mattress" though inflation would use it all up quickly. FDIC does not have enough money to cover all of our money. They had to borrow money a couple years ago. It's scary to think about but some changes are coming soon and I dont know how they will play out.

reply to post by wonderworld


Im just worried about all the old people. Many of them did lose a lot of money when the market dived and a lot of them moved to "safer" things like CDs even though they paid next to nothing.

A lot of us who are younger will struggle, but what about those who are in their late 60's, 70's, 80's? Thats what really has me upset. I mow the grass for some of my older neighbors who cant do it themselves, and I know they are struggling now. One of the reasons I do mow it for them is I know they cant, literally cant, pay someone for that.

These arent lazy people who never worked. They are simple working class people who were responsible and did what they were supposed to, but who for whatever reason just barely made enough to keep their heads above water after retirement.

And there are lots of people like that in the US. Good people. Who did the right things in life, but who just never made the big money. Whats going to happen to them? Im so angry with the money grubbers right now collecting their bonuses while the well being and fate of good Americans is hanging by a frayed thread.

reply to post by Illusionsaregrander


I forgot to add that "no debt" is where we should all be. I think charging things we cant afford is not only living beyond our means but lying to ourselves. We as individuals must help this problem, even when Big Brother has taught us otherwise, to spend, spend, spend.

reply to post by wonderworld


I'm not saying we can't see hyper inflation.

I'm saying there are different reasons why hyper inflation takes place.

Our instance of hyper inflation will be absolutely nothing liek Wiemar .. not that the inflation aspects will be different, but that the how, why and when are completely different. They are nothing alike. It's like saying an apple is an orange because they are both fruit. So please.. everyone .. stop comparing the US/EU/World to Wiemar. It's getting stupid.

reply to post by Illusionsaregrander


....Don't have your savings in Dollars? Real assets like real estate, commodities and commercial assets all retain value. Usually it's only the very, very poor who suffer the most in hyper inflation .. the rich will loose a good portion of their fortune, but it's all relative.

Originally posted by Illusionsaregrander
reply to post by wonderworld

 

Im just worried about all the old people. Many of them did lose a lot of money when the market dived and a lot of them moved to "safer" things like CDs even though they paid next to nothing.

A lot of us who are younger will struggle, but what about those who are in their late 60's, 70's, 80's? Thats what really has me upset. I mow the grass for some of my older neighbors who cant do it themselves, and I know they are struggling now. One of the reasons I do mow it for them is I know they cant, literally cant, pay someone for that.

These arent lazy people who never worked. They are simple working class people who were responsible and did what they were supposed to, but who for whatever reason just barely made enough to keep their heads above water after retirement.

And there are lots of people like that in the US. Good people. Who did the right things in life, but who just never made the big money. Whats going to happen to them? Im so angry with the money grubbers right now collecting their bonuses while the well being and fate of good Americans is hanging by a frayed thread.

I understand how you feel about the older people who worked all their lives and did the right thing. I dont think anyone over the age of 55 will be hurt too badly from the cuts, if that is what you are talking about. All areas will be cut, poor, disabled, imigrant children, college, Medicare, Medicaid,. Those who dont belong in the mentioned group will be affected too I suppose. No it isnt fair at all. I think of sociology and in my case I'd protect any of my older loved ones the beat I could. We may go back from the nuclear family to the extended family. Ass backwards and wrong but might be the only way? What do you think?

Originally posted by Rockpuck
reply to post by wonderworld

 

I'm not saying we can't see hyper inflation.

I'm saying there are different reasons why hyper inflation takes place.

Our instance of hyper inflation will be absolutely nothing liek Wiemar .. not that the inflation aspects will be different, but that the how, why and when are completely different. They are nothing alike. It's like saying an apple is an orange because they are both fruit. So please.. everyone .. stop comparing the US/EU/World to Wiemar. It's getting stupid.

O.K we can just use the term "bring out the wheel barrows full of worthless money to buy a loaf of bread in the United States of America." Do you have any idea of how to get us out of this defecit?

Originally posted by Illusionsaregrander
reply to post by wonderworld

 

But, for older people with little or no debt and savings accounts wont this essentially wipe them?

I agree that this may work out great for the most irresponsible, my concern is for those who have been responsible, and who no longer work and so will not be getting paid at a higher rate. (people on fixed incomes or who are living on savings) What would happen to them?

This is exactly what infuriates me corning this unbelievable mess. The whole situation seems to be engineered to reward the greedy, dishonest and irresponsible. On a personal level, I live frugaly with no debt and am tring to hang on to as much of a modest IRA despite being unemployed as possible. The economy in FL is atrocious and I have begun to encounter age discrimination. I don't and haven't received any government aid. To even qualify for food stamps I's have to bankrupt myself. But, all around me I encounter folks who recieve all sorts of benefits precisely because thet haven't attempted to take responsible care of themselves.

On top of all that Obamacare threatens to bankrupt me by sadling me with paying for health insurance.

One thing I am curious about though concerns timelines...elections aren't t for 19 months. I already believe commodity prices are being artificially controlled and I would think the WH would endeavor to keep a lid on things till then. But I do recall Walmart sending a heads up to price increases that would coincide with the ending of QE2.

Originally posted by Rockpuck
reply to post byRockpuck

 

....Don't have your savings in Dollars? Real assets like real estate, commodities and commercial assets all retain value. Usually it's only the very, very poor who suffer the most in hyper inflation .. the rich will loose a good portion of their fortune, but it's all relative.

In the Great Depression your 100 bucks in the bank was still worth 100 bucks. With Hyperinflation it would cost that same 100 bucks to buy a roll of toilet paper.

Originally posted by wonderworld
We may go back from the nuclear family to the extended family. Ass backwards and wrong but might be the only way? What do you think?

I grew up in rural Hawaii, and that was the norm there. I definitely think its a better way to live. But for those like my neighbors whose children have had to move away for work, it probably wont be an option.

Our whole system is set up to divide people, we probably should go back to a more "natural" state of human organization, but those already old are just going to get lost in the madness Im afraid. And I have always liked older people, probably because I did grow up in Hawaii, and the attitude towards your elders was a lot different than the mainland attitude that if you are not 20 something you are already useless and decrepit.

Old people know stuff. I bet many of them have the knowledge of how to survive a mess like we will be in, but the question is, will the younger people listen to them and provide the manpower to do it. Lots of them know all about growing your own food, canning, etc. One of my 80 year old neighbors was showing me all the edible weeds just last weekend.

I think in the long run a collapse will be good for us, but I really dread the short run. A lot of people are really going to suffer horribly. Many already are.

Originally posted by Illusionsaregrander

Originally posted by wonderworld
We may go back from the nuclear family to the extended family. Ass backwards and wrong but might be the only way? What do you think?

I grew up in rural Hawaii, and that was the norm there. I definitely think its a better way to live. But for those like my neighbors whose children have had to move away for work, it probably wont be an option.

Our whole system is set up to divide people, we probably should go back to a more "natural" state of human organization, but those already old are just going to get lost in the madness Im afraid. And I have always liked older people, probably because I did grow up in Hawaii, and the attitude towards your elders was a lot different than the mainland attitude that if you are not 20 something you are already useless and decrepit.

Old people know stuff. I bet many of them have the knowledge of how to survive a mess like we will be in, but the question is, will the younger people listen to them and provide the manpower to do it. Lots of them know all about growing your own food, canning, etc. One of my 80 year old neighbors was showing me all the edible weeds just last weekend.

I think in the long run a collapse will be good for us, but I really dread the short run. A lot of people are really going to suffer horribly. Many already are.

Yes that is so true! The older people did know how to survive off the land. The skills to acquire food were part of the fabric of life. Picking berries in the summer, gathering nuts in the fall, growing food, processing food, smoking meats, canning vegetables and fruit, making cheese, fishing, and hunting were skills that every kid learned from his parents and grandparents. How many people these days could take a live chicken and make it into a fried chicken? How many kids have no idea how something as simple as butter is made?

Those skills were used to do a lot of work with very little material goods. Clothes were washed by hand, fertilizer was made at home thanks to the cows and horses, not bought, and home shops, wood, and welding were common and always used. Many people today would have no idea how to wash a load of clothes by hand or dry them without the dryer telling them what setting it needed to use.

There are lots of tricks like storing meat in grain silos and things like that.