The Most Dangerous Kind of Inflation

Serious problems continue to brew as America continues on a massive money-printing adventure.

Where will it all end?  Of course we KNOW it won't end well for America.  Remember, America is not mentioned anywhere in the Bible when it speaks of the Last Days.

What we don't know is if the rapture will destroy America when millions of it's most productive citizens simply vanish...OR...if the whole system will simply implode when the confidence in our paper continues to erode.

Back in 1980 Crain Books published my book The Myths of Inflation and Investing. In it, I identified and discussed five distinct species of inflation, concluding that by far the most dangerous and destructive kind of inflation is Monetary Debasement Inflation. This is often referred to as "printing press inflation," or "bushel basket" inflation, and is now euphemized with the term Quantitative Easing (QE). Here is my shorthand description of Monetary Debasement Inflation as it appeared in my book over 30 years ago:

Monetary Debasement Inflation:

This is government printing press inflation. The existing government attempts to keep a troubled economic system functioning by creating a larger supply of money. This is by far the most dangerous kind of inflation because of its snowballing characteristics. It feeds on itself and is very difficult to control, much less stop. Oil cartels eventually break up. Wars end. Business cycles eventually run down. But the printing press does not stop until the economic system is in ruins. Hyperinflation, or bushel basket inflation, leaves very few economic survivors.

 

Today the fat is in the fire here in the U.S. with QE1, QE2, QE3 and all the QEs that will follow. Euroland is tracking Bernanke's printing press footsteps, and even the Swiss have joined the currency devaluation movement. So far, the Germans are reluctantly being swept along.

Here in the U.S., our politicians are, for the most part, still ignoring the destructive economic risks that are snowballing; today, only 60.0% of U.S. Government spending is offset by revenues, while 40.0% is covered by borrowing and creating new currency (often in combination). Do our elected representatives face up to and discuss this critical issue in this election year? Hell no. Most sweep it under the rug and focus only on being reelected.

History is strewn with examples of monetary debasement destruction from ancient Greece and Rome, to France and Germany, from South America to Africa. It is said that those who don't know history are doomed to repeat it. I might add to this that those who know economic history and choose to ignore it are also doomed to repeat it.

.....I keep a 100 billion dollar banknote in my billfold, issued by the Reserve Bank of Zimbabwe. It was issued in July 2008, with an exchange value of only $10.00 U.S. Dollars back then. Today this bill is worthless and no longer legal tender.

 

Here;  http://www.globaleconomicandinvestmentanalytics.com/archiveslist/articles/1405-the-most-dangerous-kind-of-inflation.html

Yep...and those who don't know Biblical history simply have NO WAY of figuring out what is going on in the world.  What's even more sad is that those who don't know Christ will be eternally lost.

We have lots of work to do folks.  Let's keep working before night comes for these lost folks on earth!

Have you told anyone today about Jesus?  Have you asked anyone today about all the strange things going on that are observable to everyone and asked them if they have any idea WHY all these things are happening?

"Where there is a dead body, there the vultures will gather."  Said Jesus.