muses of the moment

January 13, 2010

Inflation

Filed under: Hyperinflationary Depression, Inflation, The Financial Crisis — totallygroovygirlfriday @ 5:46 am

The price of gas in the United States has gone up an average of $.96 in the last year. But take heart, there is no inflation. In fact according to the government we are practically in negative inflation, after you take out food and energy. For the real rate of inflation, check out John Williams at shadowstats.com.

The government can print money all they want but they can not control where it goes. And there is the problem. This time, after the banks finally start lending or the government starts throwing money directly at the consumption economy, it will create inflation in commodities and precious metals, then hyperinflation and a currency crisis. A hyperinflationary depression is deflation in debt and inflation in prices.

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