22 March 2006
Safe Haven | Previews of Coming Destructions
Safe Haven | Previews of Coming Destructions: "The recent announcement by the Bank of Japan that it will soon end its zero interest rate policy serves to illustrate the main reason why I am a longer term bear on the U.S. economy and dollar. The two principle factors that need to exist in order to cause hyperinflation have been set in motion and it is scheduled to arrive in the middle of the next decade. One is our massive debt and the other is the fiat currency system which will be employed to print the imbalances away. The reason why I believe hyperinflation is the more likely outcome, as opposed to a depression, is that hyperinflation is more palatable from the Government's standpoint. It only insidiously destroys the public's wealth, where as a severe economic downturn would be immediately pernicious for the consumer and not as easily disguised."