US Inflation Could Hit 200% says Dr. Doom

[custom2006]

CNBC.com
Friday, Feb 6, 2009

The US risks being hit by Zimbabwe-style hyperinflation and there are signs that the world’s biggest economy risks turning into a banana republic, Marc Faber, author of the Gloom, Doom & Boom report, told CNBC’s “Asia Squawk Box.”
“In the US, we have a totally new school, and it’s called the Zimbabwe school,” Faber said. “And it’s founded by one of the great leaders of this world, Mr Robert Mugabe, that has managed to totally impoverish his own country. And that is the monetary policy the US is pursuing.”
The government’s increased intervention in the economy is likely to slow down economic growth because history shows that every time the private sector shrinks to make way for the government sector, the economy suffers, he said.
Asked whether the US risked being faced with 200 percent inflation, Faber answered: “Well, not yet. Not yet. But I think eventually. If I look at government debt in the US, and debt in general, I think the only way they will not default physically on their debt is to inflate.”
The Federal Reserve’s policy of printing money and the government’s intervention in the economy might undermine the US’s economic and political clout, Faber warned.

Full article here


Research related articles:

1. Dr. Doom: US Bailout Plan Will Probably Fail
2. Governments May Have Caused Stocks Selloff: Dr. Doom
3. $700 Billion May Not Be Enough: Dr Doom
4. Stocks Could Drop 20%, No Safe Haven: Dr. Doom
5. Dr. Doom forecasts depression
6. More doom for global economy
7. Fed Acted Like a Liquidity Drug Dealer: Economist
8. Forecast: 2 Years of Deflation, Followed by Raging Inflation
9. Morgan Stanley: Beat Deflation (or Inflation) with Gold
10. Inflation, Deflation or New Nation?
11. Analysts Predict Hyper-Inflation To Push Gold To $2000, Oil to $300 Within Months
12. Bloomberg Analyst: $700 Billion Bailout Could Balloon to $5 Trillion

 

[rolltide]

nah, the federal reserve would never let this happen

(sarcasm)

 

[ATTILAtheBEAST]

We all better start using our worthless paper dollars to buy up silver and gold ladies and gents. It may be the only way to protect our wealth.

 

[HuskerFan1]

im getting 850 back in taxes and as soon as i withdraw those paper dollars from my checking acct....im placing an order on APMEX for more silver and gold...

 

[D2bets]

I don't understand what's so intrinsically valuable about silver and gold? It can't power your home or your car, or feed your family or provide shelter. Can someone explain why gold is so intrinsically valuable?

 

[mamatried]

Of course he's right. We're going to have to pay back the Chinese and the Arabs in devalued dollars. Otherwise, every single thing we produce will go to pay off our debt and we'll be a nation of paupers.

It would have been nice if Bush had some understanding of economics and realized that you build surpluses - you don't run large deficits - when the economy is in good shape. Now, we've got no choice but to run deficits (although the stimulus package is WAY over the top IMO).

On the positive side, unlike the ridiculous tax cuts that Bush funded through borrowing, at least Obama's going to spend money rebuilding infrastructure. So we'll get some long-term benefit from borrowing (relatively) valuable dollars that we'll have to pay back in valueless dollars.

 

[kingbill]

I don't understand what's so intrinsically valuable about silver and gold? It can't power your home or your car, or feed your family or provide shelter. Can someone explain why gold is so intrinsically valuable?

The same reason, paper money is deemed valuable, perception.

But as long as enough people are willing to take gold as payment it's valuable.

 

[eek.]

I don't understand what's so intrinsically valuable about silver and gold? It can't power your home or your car, or feed your family or provide shelter. Can someone explain why gold is so intrinsically valuable?

It's munney which cannot be created or destroyed.

The value also includes the value of the labour and resources spent to extract it.

People could quickly get used to using gold, as well as fiat.

Like paper dollars, it's utterly usless.
However, as a means of trading value, it is globally recognised.

In 1935 an ounce of gold bought a good suit for $35
In 2009 an ounce of gold buys a good suit for $900

 

[tiznow]

obviously gold isn't a long term hold under a fiat system that is over the course of the long haul relatively stable eekster

you'll get killed by fiat inflation as an investment

buy up gold when you forsee doom and gloom and financial turmoil on the horizon

and dump it once you see clearer pastures ahead and that the faith in fiat likely will be restored so we can return to slow moderate fiat inflation raping the little dude just a tiny bit at a time so he don't notice or care.....

under fiat

gold pops prior to and during doom and gloom

gold falls prior to and during good times when the economy is churning along a moderate clip with modest fiat inflation raping the little dude a little bit at a time...

 

[fletchisrhsm]

the value also includes the value of the labour and resources spent to extract it.

bingo

 

[mamatried]

It's munney which cannot be created or destroyed.

The value also includes the value of the labour and resources spent to extract it.

People could quickly get used to using gold, as well as fiat.

Like paper dollars, it's utterly usless.
However, as a means of trading value, it is globally recognised.

In 1935 an ounce of gold bought a good suit for $35
In 2009 an ounce of gold buys a good suit for $900

Not exactly true. There is definitely an intrinsic value to gold (unlike paper), and that's why it became the store for international value. It's uses are industrial, commercial, scientific, etc. etc. And, it's relatively rare.

 

[tiznow]

gold will always be true money in all human based economies...

it will always be the fall back currency

the fiat creators can fool people for 100s of years but all fiat will die at some point just a matter of when

one fiat that recently died was the icelandic krona

i'm guessing there may be a few others to die before this global depression ends....

how many died last great depression worldwide anybody know?

as far as dr. doom above goes

if the USD dollar dies that means the global fiat based economy has died and we will be in a transition to find a new system going forward while we barter near term in pure anarchy....

the USD is the gold standard of fiat currency

like ukraine i read is having a currency crisis...what fiat are they fleeing to for their day to day needs to buy goods?

USD...not euro's...not yen....not gold since you can't easily trade it....USD

 

[tiznow]

that brit boat they found in the english channel eekster with a ton of gold on it

good example of gold withstanding the test of time as well as mother nature and shit like that to boot

gold will never be an "archaic relic" as i've heard several gold haters say over the course of this current bull market in gold

 

[ScottL]

[Marc Faber, author of the Gloom, Doom & Boom report]

Tiznow, after all this razzing I can't believe you're actually a Jew.

 

[eek.]

I'm part jew on my grannys side as well Scotty.

We're everywhere.

 

[eek.]

Most people have let go of their roots and moved on.

Gawd knows where I'm from originally, some long dead culture.

We don't see the African Americans racing back to Africa, or the Irish using US supplied military gear to reclaim Northern Ireland from the Brits.

Only you middle east doods are really obsessed with your happy hunting grounds, and will quite happily kill millions to reclaim a bunch of ancient crumbling ruins sitting on top of a mound of sand.

Both sides will have to throw away their voodoo dolls and their spears before things will quieten down.

Converting everyone to christianity, like they did in Africa, might help.

 

[mamatried]

Most people have let go of their roots and moved on.

Gawd knows where I'm from originally, some long dead culture.

We don't see the African Americans racing back to Africa, or the Irish using US supplied military gear to reclaim Northern Ireland from the Brits.

Only you middle east doods are really obsessed with your happy hunting grounds, and will quite happily kill millions to reclaim a bunch of ancient crumbling ruins sitting on top of a mound of sand.

Both sides will have to throw away their voodoo dolls and their spears before things will quieten down.

Converting everyone to christianity, like they did in Africa, might help.

I agree with the last sentence. But think for a minute... if it weren't for certain types always ranting about "joo bankers" and "joos in the BBC" and "joos" this and "joos" that, maybe there wouldn't be a need for a Jooish state in the first place.

 

[ScottL]

Most people have let go of their roots and moved on.

Gawd knows where I'm from originally, some long dead culture.

We don't see the African Americans racing back to Africa, or the Irish using US supplied military gear to reclaim Northern Ireland from the Brits.

Only you middle east doods are really obsessed with your happy hunting grounds, and will quite happily kill millions to reclaim a bunch of ancient crumbling ruins sitting on top of a mound of sand.

Both sides will have to throw away their voodoo dolls and their spears before things will quieten down.

Converting everyone to christianity, like they did in Africa, might help.

Take your "Both Sides" and shove it up your ass ya drunken moron.