Monday, March 21, 2011

Countdown to Hyperinflation

In 2007 it was "Subprime".
In 2008: "Contagion" and "Market Panic".
In 2009 and 2010: "Green Shoots".
2011 is shaping up to be "Black Swan".

Just how long until "Hyperinflation" is the catch phrase used to describe the US economy?

John Williams of ShadowStats is calling for hyperinflation in the US within 6 months. 
While we aren't looking for full fledged hyperinflation for another 12-24 months (about 18-24 months for QE2 to work through the system), the events of the past 10 days have made hyperinflation in the next 3-6 months a serious possibility.  If Japan resorts to selling US Treasuries to raise cash, all bets are off. 
President Wilson may be your son's allowance before the next NFL game is played.



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