Tuesday, September 28, 2010

How Hyperinflation Will Happen In America..The Government Can't Stop It...

Right now, I?m guessing that sensible people who?ve read this far are dismissing me as being full of shit?or at least victim of my own imagination. These sensible people, if they deign to engage in the scenario I?ve outlined above, will argue that the government?be it the Fed or the Treasury or a combination thereof?will find a way to stem the panic in Treasuries (if there ever is one), and put a stop to hyperinflation (if such a foolish and outlandish notion ever came to pass in America).  Uh-huh: So the Government will save us, is that it? Okay, so then my question is, How? Let?s take the Fed: How could they stop a run on Treasuries? Answer: They can?t. See, the Fed has already been shoring up Treasuries?that was their strategy in 2008??09: Buy up toxic assets from the TBTF banks, and have them turn around and buy Treasuries instead, all the while carefully monitoring Treasuries for signs of weakness. If Treasuries now turn toxic, what?s the Fed supposed to do? Bernanke long ago ran out of ammo: He?s just waving an empty gun around. If there?s a run on Treasuries, and he starts buying them to prop them up, it?ll only give incentive to other Treasury holders to get out now while the getting?s still good. If everyone decides to get out of Treasuries, then Bernanke and the Fed can do absolutely nothing effective. They?re at the mercy of events?in fact, they have been for quite a while already. They just haven?t realized it. Well if the Fed can?t stop this, how about the Federal government?surely they can stop this, right? In a word, no. They certainly lack the means to prevent a run on Treasuries. And as to hyperinflation, what exactly would the Federal government do to stop it? Implement price controls? That will only give rise to a rampant black market. Put soldiers out on the street? America is too big. Squirt out more ?stimulus?? Sure, pump even more currency into a rapidly hyperinflating everyday economy?right . Read more:  Here..

Depressed People Depression Test

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