Friday, February 11, 2011

America, poised for a hyperinflationary event?

I hope not, but it is concerning:

America, poised for a hyperinflationary event? - Michael Pollaro - The Contrarian Take - Forbes: "It is a long standing proposition of many, supported on both theoretical and historical grounds, that one of the surest roads to hyperinflation is one grounded in a government whose answer to every economic and social problem is to borrow and spend the problem away, supported by central bank able, willing and ready to finance the effort. That support is of course to simply print the money through which to buy the debt so issued by the government – what is euphemistically called monetizing the debt – thereby exploding the supply of money and eventually trashing its value."

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