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  • Why Our Credit Crunch Mirrors the Weimar Hyperinflation from 1919-1923  [View article]
    Instead of comparing the present USA economic policies to past Germany lets look at the fundamentals that are here in the United States.
    Textbook definitions and common sense suggest that money supply growth beyond GNP growth is inflationary.
    Our money supply is the (money in circulations) times the velocity of the money. USA has been printing money and the reason it has not shown up yet as inflation is due to two things. 1) Banks and other institutions are hording money and limiting credit so that the velocity is practically zero. 2)The effect of stimulus takes about 12 months to work thru the system. If you take a look at M3 in Shadow Statistics you will see that M3 is climbing and were going to be in deep trouble sooner or later. There is no such thing as a free lunch and Treasuries are now paying zero is a bubble and this too will pop and interest rates will go sky high. Be prepared for super inflations and I said before we do not need to compare ourselves to Germany...OUR INFLATIONS IS GOING TO BE HOME GROWN....MarvinMBA
    Apr 15 19:35 pm |Rating: +1 -5 |Link to Comment
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