The issue of inflation-deflation will not go away. Michael Panzner has written an article as to why we will have hyperinflation. His key sentence is
Hyperinflation is a fiscal phenomenon borne out of a bankrupt state that can’t service its debts.
In one simple sentence, Mr. Panzner has described the condition of every previous hyperinflation and provided the reason why the US will end up in hyperinflation.
The sentence explains why most, if not all welfare states, will end in the same fate. To understand the impossibility of meeting government obligations, see Spiraling to Bankruptcy and Welfare States R.I.P..
When a state cannot service its debts, it has two options — default or print money. No state that has the option of the second choice chooses default. Does anyone expect US politicians to dismantle Social Security, Medicare, Welfare Payments, massive government agencies? The promises made and the level of spending is unsustainable without printing (or what is euphemistically called Quantitative Easing).
Brace yourselves for the US version of Weimar Germany.
John Mauldin Opines on Keynesian Nonsense
Sovereign Defaults on the Way
On The President's Speech
Default Now, Not Later
The European Charade
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