(OPINION) ETH – Signs of impending economic doom continue to grow all around us. For years, highly respected experts have been warning about the steady destruction of our standard of living and the death of the U.S. dollar. Perhaps you didn’t listen to those voices at first, and that is understandable.
Most Americans have their hands full making a living and taking care of their families. But then housing prices started to go absolutely nuts, health costs continued to spiral out of control and a trip to the grocery store just kept getting more painful. At this point, nobody can honestly deny that inflation has become a major problem.
But even though the chorus of voices that is warning of a dramatic inflationary collapse is growing by the day, the Federal Reserve just keeps pumping more giant piles of money into the financial system, and the federal government continues to engage in the most reckless spending binge in the entirety of U.S. history.
Despite the utterly insane policies of our “leaders”, the U.S. economy continues to languish in economic purgatory. Trillions upon trillions of dollars have been poured into the economy, and yet the U.S. still has 8.2 million fewer jobs than it did last February.
They had hoped to create an “economic boom”, but instead they are setting the stage for an implosion of epic proportions. In fact, John Williams of shadowstats.com insists that we are “eventually headed into a hyperinflationary economic collapse”…
So, is the choice inflation or implosion? Williams says, “That’s the choice, and I think we are going to have a combination of both of them. I think we are eventually headed into a hyperinflationary economic collapse. It’s not that we haven’t been in an economic collapse already, we are coming back some now. . . .
The Fed has been creating money at a pace that has never been seen before. You are basically up 75% (in money creation) year over year. This is unprecedented. Normally, it might be up 1% or 2% year over year. The exploding money supply will lead to inflation. I am not saying we are going to get to 75% inflation—yet, but you are getting up to the 4% or 5% range, and you are soon going to be seeing 10% range year over year. . . . The Fed has lost control of inflation.”
And remember, when the Fed has to admit the official inflation rate is 10%, John Williams says, “When they have to admit the inflation rate is 10%, my number is going to be up to around 15% or higher. My number rides on top of their number.”
You don’t want to believe Williams? That is fine. He has just been right time after time over the years. But feel free to ignore him if you wish. If you are determined to ignore the truth, you probably will not like what Egon von Greyerz is saying either… As technological developments and markets go parabolic, we observe many market “experts,” even intelligent ones, forecasting that we are now in an exponential economic era. Thus many believe that this will go on forever. This is the typical attitude at market and economic tops and guarantees that THIS WILL NOT END WELL!
It is clearly absolute nonsense to believe that exponential expansion based on deficits, debts, and fake money is the beginning of a new era. Anyone studying the economy and history of markets knows that exponential moves indicate the end of an era and not the beginning. As I have repeatedly said, history is our best teacher, and it both rhymes and repeats itself. And history now gives us dire warnings.
If you wish to reject what these experts are telling us, can you point to another time in history when officials have wildly created new money and everything has turned out just great? “New money” is always such a tempting solution, because every time it always seems to work at the beginning. It is kind of like a tonic that instantly makes you feel better for a few hours but that ultimately kills you in the end as you keep taking it.
Now that we have greatly accelerated our journey toward an inflationary collapse, even Warren Buffett has started to sound the alarm… “We are seeing substantial inflation,” Warren Buffett told attendees at last week’s annual Berkshire Hathaway shareholder meeting. “We are raising prices. People are raising prices to us, and it’s being accepted.” READ MORE