FOX NEWS

Tuesday, July 13, 2010

WEIMAR ANYONE?

While we seem to be in a deflationary period at the moment, eventually we are going to return to inflation. This time around we stand a really good chance of hyperinflating because of all the money being produced by the government to try to stimulate the collapsing economy.

I think that we're starting to see the effects already. My wife and I went grocery shopping last weekend and prices are definitely rising on food and other essential items. I've been noticing this for the past couple months. Even though demand is down. Because these items are essential the manufacturers and retailers can pass the increased cost of their devalued dollars along.

Prepare for the inevitable. Our government is showing no signs that it intends to accept fiscal responsibility. It prefers to continue creating more and more debt by printing dollars to create an illusion of economic growth. If we won't take our medicine now we'll have to take it later, when the disease is worse and the cure that much more violent.




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