12 Warning Signs of U.S. Hyperinflation

[Poboy]

12 Warning Signs of U.S. Hyperinflation

National Inflation Association

One of the most frequently asked questions we receive at the National Inflation Association (NIA) is what warning signs will there be when hyperinflation is imminent. In our opinion, the majority of the warning signs that hyperinflation is imminent are already here today, but most Americans are failing to properly recognize them. NIA believes that there is a serious risk of hyperinflation breaking out as soon as the second half of this calendar year and that hyperinflation is almost guaranteed to occur by the end of this decade.

In our estimation, the most likely time frame for a full-fledged outbreak of hyperinflation is between the years 2013 and 2015. Americans who wait until 2013 to prepare, will most likely see the majority of their purchasing power wiped out. It is essential that all Americans begin preparing for hyperinflation immediately.

Here are NIA's top 12 warning signs that hyperinflation is about to occur:

http://www.activistpost.com/2011/03/12-warning-signs-of-us-hyperinflation.html

[orwell]

1. Who cares if we have global structural deflation...

...let's all join together and pump up those prices one...more...time!

Thank the goddess for the casino known as the global commodity markets...where opinion becomes reality every day.

[Davis_X_Machina]

2. As we slide into the second dip..

....of a double-dip recession, and the austerity hawks sharpen their talons for another attack on the budget, in another attempt to beat aggregate demand to death, it's nice to know that people are still worried about hyperinflation.

We're getting a snowstorm Friday. Remind me to wear sunscreen when I go out to shovel.

[dawg]

17. Thank God I'm not the only one who understands this.

The powers that be are afraid of even moderate inflation, because that would erode the value of their holdings. Better to keep the economy in crisis, preserving the value of the almighty dollar.

And as an added benefit, workers are so frightened and desperate, there is literally *no* upward pressure on wages or benefits.

[AKDavy]

3. Why don't we all just stop buying shit we don't need

When you do need something, spend a little more and get something you won't have to replace anytime soon.

Stop spending on all non-essentials. If it isn't food, water, shelter, or other essentials, don't waste money on it. Invest in self-sufficiency. For example, emergency food and medical supplies; pay off secured debt; help family members do the same; stockpile a few things that can be bartered (e.g. whiskey, .22 ammunition, aspirin).

[BonnieJW]

4. Soooooo,

how does one prepare for hyperinflation?? Seriously, I'd like to know.

[Poboy]

5. Something tells me you didn't click the link.

Seriously, I'd like you to know.

[Newsjock]

10. Well, other than GOLD, GOLD, GOLD

... which is what all these websites always seem to be touting.

A more fully-formed question might be: "What happens to average Americans in high inflation, and can anything resonably be done in advance to minimize the effects?" The answer, I fear, is no, we're screwed. Unless we stockpile 10 years' worth of toilet paper and sell it to our excretorily-challenged neighbors.

[BonnieJW]

14. I did click the link.

It sounds like we should dump US Treasuries. That seems like all we can do.

[rucky]

6. hyperventalation?

:shrug:

[earthside]

8. The only thing you can do ...

... is to have trade-able items.

So, the price for a loaf of bread has become $500 in paper money at 10 AM and is expected to be $525 by noon -- and you don't get paid in hyper-inflated dollars until Friday, what are you to do?

If you have a bottle of soap that the baker is willing to trade for, well, you might be able to get the loaf of bread.

Having a store of things worth something to other people is the only way to prepare for hyper-inflation.

[unblock]

13. well, if you really believe hyperinflation is coming, then you should borrow and invest in gold, e.g

if you borrow a lot of money and use it to buy a house or gold or something else that will hopefully increase in price with hyperinflation, then you win big because your debt stays the same while your assets grow.

so for instance, rents will skyrocket so if you rent, you're screwed.
buy if you can buy a $250,000 house with a $200,000 mortgage, hyper inflation means that a few years later the house will be maybe a $500,000 house but your mortgage will still be only $200,000 (actually a tiny amount less).

personally, i think this is a dangerous strategy, because it can really backfire if your guess about hyperinflation is wrong (even if only wrong in the timing). but it is the "standard" way to take advantage of hyperinflation.

[MilesColtrane]

19. I'm glad you asked.

Buy the stocks that the National Inflation Association touts in its newsletter.

It's all very convenient.

[SidDithers]

20. +1...nt

Sid

[Xicano]

28. Don't keep your money tied up in paper money.

It use to be that you could exchange your paper money for some other country's paper money and ride out the inevitable crash of your currency. However, today that is not the case because not only is all the world's currency paper fiat currency, they are pegged to the U.S. dollar.

Therefore, you have to exchange your paper money for hard commodities, with the easiest being the one most historically used throughout history - precious metals. And I don't mean ETF's or other pieces of paper representing your purchase of precious metals because those are fractional reserved out at 100 to 1. No I mean you have to buy and hold physical bullion. Also, if you do that don't store them in a bank safety deposit box. The law stipulates that during time of "financial crisis" the government can (and has on occasions) confiscate all contents in bank vaults including its safety deposit boxes.


P.S. Silver always out performs gold.

[jeff47]

7. The author of your article could use a few courses in basic economics

10 of their 12 warning signs do not show what they claim.

The other 2 are not economic.

[Poboy]

11. Okay, now we are getting somewhere. Thank you for your input and any elaboration

you may find yourself making.

[jeff47]

27. The key feature:

Liquidity trap. We are in one. And so the "normal" intuition about the economy no longer applies. Interest rates should be negative at the moment, which is not possible. So you need inflation to bring rates up to 0.

That's not hyperinflation, and the activities requires (and enumerated as "warning signs!!!!1!!!11") are easily reversed long before hyperinflation. But we don't need to worry about that until we actually have inflation at all.

[denem]

9. Let me guess. Accelerating falling house prices

or maybe choking tight credit?

You've got two things in play at the moment - A debt deflation cycle, as per most financial crashes, and a supply shock - Oil & Food.

Have you ever heard of the liquidity trap - Bond rates so low that investors know the only way is up - and therefore they would take a loss..

Do you know the Fed tightened credit during the Depression, because of fears of Hyperinflation? It was critically important they said to get the nations finances back to a sound footing.

Hyperinflation Now? A few more years?- baloney.

[dawg]

18. +1000

These are the same failed warnings and ideas conservatives pushed in the 1930's. Like Reagan and his trickle-down economic, they have been proven wrong repeatedly, but like zombies, rise from the grave and continue to try and eat our brains.

[denem]

21. Monetarism was all the rage in late '70

This strange phenomenon had occurred call 'stagflation' High unemployment low growth but double digit inflation. It must be we are printing too much money they said.

Yep, control M3 money, the silver bullet.

It could not be, could it, that the price of oil had gone from $3/barrel in 1973 to $30/barrel in 1980 - TEN times, driven by a Cartel that was completely ad odds with their underlying free market theory?

[rucky]

12. Buy Gold!

This message brought to you by the National Inflation Association - a conglomerate of gold and silver dealers.

[denem]

15. Mae West - ' I'm not a gold digger, I take diamonds. We'

way go off the gold standard one day '

[trackfan]

16. True hyperinflation would destroy debt.

Hyperinflation is as unlikely as a jubilee. Those with the economic power don't want debt destroyed.

[mwooldri]

22. It would suit some people fine if there was hyperinflation Zimbabwe style...

It would kill debt that is set at a fixed interest rate very quickly indeed.

If the debt was a variable rate with "prime rate" - if prime rate goes to 200,000% - then it'd be near impossible to pay off your credit cards.

The issue is somehow holding on whilst the hyperinflation ramps up. When you can make e.g. $1M USD in a single transaction then your house, student loans, fixed rate loans are all paid for. If your pay is indexed to inflation and you actually get paid... then it might work. If you can trade then you may get through. Otherwise it would be hard going when the inflation rate goes up and up into the hyperspace area so you can pay your fixed debts off for the same price as a loaf of bread.

But as you stated, the people with the cash right now definitely don't want to see debt destroyed.

[CBGLuthier]

23. Not gonna buy gold from Beck why should I buy it from you?

[marginlized]

24. NIA - shill for Faux News?

You can watch the NIA's Gerard Adams, or is it Gerard Adam's NIA, here:
http://video.foxbusiness.com/v/4416855/nia-president-beware-of-massive-food-inflation/

Registrant data for www.inflation.us
Registrant ID: DB7877501ECDF445
Registrant Name: Gerard Adams
Registrant Organization: National Inflation Association
Registrant Address1: 96 Linwood Plaza #172
Registrant City: Fort Lee
Registrant State/Province: NJ
Registrant Postal Code: 07024
Registrant Country: United States

But don't go to his website. GerardAdams.com is riddled with viruses.

[jtown1123]

25. If you subscribe to Keynes, inflation only happens when demand outpaces supply.

We don't have that problem right now. We have tons of supply but no demand.

[Zynx]

26. Um, there is some bad analysis here.

For instance, saying that the year over year inflation rate has increased 92% is the past three months may be true, but it doesn't mean that's sustainable. For instance, the stock market some times increases 4% in a week. If I said, "Well, if it continues going up 4% per week for 52-weeks, it will go up over 200% (not factoring in compounding) by the end of the year."

One of the worst human traits is to buy into simple linear extrapolation.