April, 2009: "Hyperinflationary Great Depression"

"For 20 years I have carried this $20 bill in my wallet. I do this because it is still legal tender and I always have $20 cash on me. Printed in 1914 it represented close to a weeks wages for a working man. In 1914 this was a huge bill. The images on the back of the bill celebrate a strong America with an automobile, a train, a boat and even an airplane. Today the back of our $20 bill celebrates government. Today we celebrate nothing.

Inflation. What cost $20 in 1914 would cost $409.33 in 2007. If you were to buy exactly the same products in 2007 and 1914, they would cost you $20 and $0.99 respectively. With trillion dollar deficits what is todays $20 bill going to be worth in 10 years? If you think recession is bad wait until you meet Mr. Hyperinflation.”

- GeorgiaYank http://2cents.dailyreckoning.com/viewtopic.php?t=42063&highlight=

“By April, the rapidly deteriorating recession will be viewed commonly as the worst downturn since the Great Depression. Fearing same, the incoming Obama Administration is promising stimulus in the form of massive federal spending. Concerns about the government's fiscal condition can wait until the economy recovers, we are being told. A similar pacifying assurance presumably extends to inflation concerns as well. Unfortunately, with the economy in a structural downturn and with the U.S. government effectively bankrupt, there can be no rapid or normal recovery. As inflationary pressures mount anew and the financial markets increasingly shun U.S. Treasuries, an inflationary depression can evolve quickly into a hyperinflationary great depression. Although hyperinflation became inevitable in the last decade, the onset of the process just recently was triggered by Fed and the Treasury actions in addressing the systemic solvency crisis. The process would be accelerated by unfettered and unfunded government spending that appears to loom in early 2009.” - http://www.shadowstats.com/