Marv Gandall wrote: > May 27 (Bloomberg) -- 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.”
huh? The M2 money supply (the measure that Monetarists see as most related to the inflation rate) grew about 10% since a year ago. It's not growing as quickly as during the 2001 recession. In neither case is this enough to cause hyperinflation. It looks like this guy is trying to boost the demand for gold, so he can sell and make a profit. -- Jim Devine / "Segui il tuo corso, e lascia dir le genti." (Go your own way and let people talk.) -- Karl, paraphrasing Dante. _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
