Though the debate between inflationists and deflationists continues to persist, well known economist and statistician John Williams of Shadow Stats ignores deflationist warnings and reports to clients that a flight from the user dollar will be triggered in a matter of months:
Systemic Turmoil is Unthinkable, Unacceptable but Unavoidable. Pardon the use of the Aerosmith lyrics in the opening headers, but the image of tap-dancing on a land mine pretty much describes what the Federal Reserve and the U.S. Government have been doing in order to prevent a systemic collapse in the last couple of years.Â Now, as business activity sinks anew, much expanded supportive measures will be needed to maintain short-term systemic stability.Â Such official actions, however, in combination with global perceptions of limited U.S. fiscal flexibility, likely will trigger massive flight from the U.S. dollar and force the Federal Reserve into heavy monetization of otherwise unwanted U.S. Treasury debt. When that land mine explodes â€” probably within the next six-to-nine months, the onset of a U.S. hyperinflation will be in place, with severe economic, social and political consequences that will follow. The Hyperinflation Special Report is referenced for broad background.Â The general outlook is not changed.
In previous articles we have commented on John Williams’ hyperinflation warnings, and if Williams is right, we may soon begin to see Disruptions to Food Supplies and Normal Flow of Commerce, as well as a complete economic Armageddon and hyperinflationary depression.
Perhaps it’s time to finally consider hard asset investments, such as a wheelbarrow, with which you can transport not only your soon-to-be-worthless Federal Reserve Notes to grocery stores when a loaf of bread may cost bundles of dollars, but water and sand bags when the system collapses Ã la James Rawles’ Patriots.
Like pretty much everyone else, save the upper echelons of the New World Order conspirators, we really can’t say for certain how serious of a threat hyperinflation is, especially considering that the debate on whether or not inflation or deflation will be the flavor of the day is evenly split at 50/50. It’s anyone’s ball game at this point.
What we can suggest, with some level of confidence however, is that the US economy is about to tank yet again, and there is absolutely nothing that our federal government or the Federal Reserve can do about it – though they will assuredly try. This being the case, we are giving serious consideration to the thoughts John Williams puts forth, because if hyperinflation does set it, it will be disastrous for the majority of American families.
One point of interest is that John Williams does not claim that full-out hyperinflation will set in within the next six to nine months – only that we will experience the “onset” of hyperinflation resulting from a loss in confidence in the US government and US dollar. To better illustrate what we mean, consider that from the onset of hyperinflation in Zimbabwe to the out-and-out rampant hyperinflation where currency value was being destroyed by thousands of percent per day, took several years:
|year||rate of increase in prices|
Thus, while we may experience the onset of hyperinflation, the short-term severity, though painful, may not necessarily lead to a complete breakdown in society.
As self-admitted preppers, however, we cannot simply rule out this possibility.
We’re going to continue to regularly invest a portion of our monthly income into hard commodity assets that include food, self defense, tools (like wheelbarrows), seeds, survival gear, and alternate currencies such as junk silver. We suggest our readers do the same because you never really how far this economic disaster can go.
As the Godfather of Survival James Rawles says in his book How to Survive TEOTWAWKI, “I’d rather be a year early than a day late.” Do you really want to be fighting over Ramen noodles at a grocery store as prices are appreciating exponentially before your eyes?