When I first read about the Federal Reserve printing money and lowering interest rates to an effective -5% interest rate, images of Argentina and the Weimar Republic flooded my head. Rest assured I believed my fears were just that.
Now we have investor Mark Faber saying hyperinflation is guaranteed. Happen here? Well, there are a lot of things, which are stuck on stupid happening in the United States, but with the U.S. as a reserve currency and the number one economy in the world?
The U.S. economy will enter “hyperinflation” approaching the levels in Zimbabwe because the Federal Reserve will be reluctant to raise interest rates, investor Marc Faber said.
Prices may increase at rates “close to” Zimbabwe’s gains, Faber said in an interview with Bloomberg Television in Hong Kong. Zimbabwe’s inflation rate reached 231 million percent in July, the last annual rate published by the statistics office.
“I am 100 percent sure that the U.S. will go into hyperinflation,” Faber said. “The problem with government debt growing so much is that when the time will come and the Fed should increase interest rates, they will be very reluctant to do so and so inflation will start to accelerate.”
Is Faber just promoting Gold or some sort of strategy or can hyperinflation happen?
Naked Capitalism has more on the H word prediction.