Posted by
Andrews on Wednesday, April 08, 2009 3:00:13 PM
Having thought for quite some time I was alone in worrying about
a massive inflationary crisis (though
John Stossel did make some mention of
the same worry), it is nice to finally have
a pundit write on
the same topic. I am not certain I completely agree with Porter Stansberry's predictions, I am not sure the dollar will collapse quite as fast as he predicts (after all, we survived 4 years of Carter with
the dollar intact), but it is nice to have my predictions confirmed by at least one other writer.
POSTSCRIPT
I know I did warn that Obama's spending could cause Weimar-type hyperinflation, and I still see that as a possibility, I just don't think it will lead to a retreat into gold in only three or, at most, four years. Even when Germany was printing trillions of marks a day it only started to price domestic goods in gold in the final days of the inflation. And that was almost 9 years after the inflation started with the beginning of the war. It will take some time for the true damage to be felt from Obama's inflation, so we won't see the massive inflationary spiral for a year or so. Which leaves us only thirty to thirty six months for the full harm to be felt. I just don't think that is long enough for the dollar to fully collapse.
I also think that long before the dollar collapses Congress will revolt,
as I have predicted, which should put a brake on spending and, with luck, prevent us from suffering the worst Obama has planned.
Only time will tell, I suppose.