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| I just can't seem to get my hands around how the guy in the interview could use our current situation and compare it to the Weimar Republic. When I review history of that time I see a country that lost a very expensive war and was then saddled with the cost of rebuilding everything that they destroyed. On top of that everyone else in the world said we hate you guys so we are not going to deal with you. Those events all happened at once and thus sent the currency into a hyper-inflationary death roll. We don't have any of those things happening right now. I just don't see how we could have an event that could cause every dollar demoniated asset in the world to become nearly worthless in 24 hours. I'm not saying it can't happen, but please show me how that is possible.
Then I look at the Iceland situation. That looks like the perfect case for hyper-inflation to destroy a country. They only have fish to export and import everything else. They let their debt get all the way to 850 times GDP before their top 3 banks crashed and burned. Their currency has been devalued by 70% in the last year, but it is still there. Iceland could have fallen off the world map and not many people would have noticed, but yet they have a bankrupt banking system and their currency still has value. I know it is rough there right now, but they never did experience true hyper-inflation. They did have a run on the supermarkets, but I think that the shelves are restocked now and there are no news of bread lines that I could find while researching.
Then you can read this site:
http://www.iceland.org/info
Where they believe everything will be OK in another 2 years. HOW CAN THAT BE?!? I don't believe it, but if the predictions do come true how could we have hyper-inflation in the US when Iceland was in the worst possible shape and not have hyper-inflation and be OK after 3-4 years?
My head hurts.
Andy | |
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Hyper-inflation scenario
