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Financial wizards/prognosticators?

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Alas, Mr. Faver's probably right.

In the late 1970s, the U.S. saw inflation rates of some 20%/year as a result of the spendthrift ways of the late Nixon, Ford and Carter administrations as well as the tax increases which were imposed in a futile effort to get more revenue. The U.S. was on the verge of a classic hyperinflationary cycle of the "monetary model" type.

Then Federal Reserve head Paul Volcker responded by dramatically increasing interest rates, which is why we had a 21.5% prime rate in late 1979. All this, of course, doomed the Carter Administratioin to one term status. It was left to the Reagan Administration to pick up the pieces, which it did with its 1982 tax cuts, which more than doubled revenue to the Treasury by 1989, allowing the Fed to ease off on interest rates.

A nice piece on hyperinflation can be found here (and yes, it's substantially accurate).

I believe that hyperinflation is inevitable in the U.S. for one very simple reason: Since July 2008, the Bush and Obama administrations have combined to increase the money supply by almost 300%, and Obama's administration continues the practice of "quantitative easing," which is a fancy term for printing money, even while receipts to the Treasury continue to fall. This fiscal year alone, we will spend $3.6 trillion, while taking in only $1.9 trillion. There's no way that rate of red ink is sustainable. The projected figures tell us that we will add some $8 trillion of debt by October 2012. Add to that the huge tax increase that automatically happens in January 2011 when the Bush tax cuts expire, the additional tax increases that the Administration wants, notably "cap and trade," which will cost every American household at least $1,200/year in increased energy costs and the inevitable increases in oil prices as we produce less oil worldwide, and it's easy to see from where the impetus for inflation will come.

Nevertheless, at some point in time the economy will try to improve. At that point, all that money that's been produced and will continue to be printed will come out of hiding, looking for something to buy - and finding far less to buy that it needs, will spark sharp inflation. Given the fact that the Administration and the Fed are agreed to keep ratcheting up the money supply, hyperinflation, IMO, is the only possible result.

And don't think for a minute that borders will offer any shelter; this plague will quickly spread to Canada as we..

Enjoy the ride!

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RE: this plague will quickly spread to Canada

So, there is a possibility I could be a millionaire?

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There are about 40 million people over 50 in the work force

Unemployment solved...Yes.

13.7 million, presently unemployed, back to work.

Some of the 13.7 probably over 50, so they couldn't go back to work, or if they do, they wouldn't be happy campers.(missed being a millionaire by that much Sad )

Have to find 24.3 million to fill the vacancies.

$40,000,000,000,000 on top of U.S. NATIONAL DEBT CLOCK

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Maybe we could raise the age to 55

Besides there are more than 13.7 million people unemployed and underemployed (don't forget them).

The part-timers would become full-time. Teens could find work and not compete with older workers. Those on welfare who could work could find work. Welfare costs would go down. The illegals would come back. PhDs that are working at McDonalds would be able to find work in their field. The young black men (with a 50% unemployment) would be able to find work besides selling drugs and living with their moms. Parents and grandparents might use some of the money to send their kids and grandkids to college or help pay off student loans. The possibilities are mind-boggling.


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How bout raising it to 70?
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(NT) They probably just don't want to pay the CPP ;-)
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The National Debt Clock is really slow.

It's really, REALLY slow.

Beginning in the 1960's, Congress began raiding the monies set aside in the (nonexistent) "trust funds" intended to fund what I call the "Big Three" entitlements - Social Security, Medicare and Medicaid. In the place of real money (or as real as a fiat currency can be), the "trust funds" get what amount to IOUs in the form of so-called special Treasury bills. Considering that the present administration is continuing the previous one's debasing of the already debased dollar by issuing bonds at a breathtaking rate, you may rest assured that the whole house of cards will soon collapse.

In any event, even that's irrelevant. The hyperinflation will destroy all of our attempts at financial security, leaving those of us who survive the second Civil War effective slaves in the new United Socialist States of America.

Maybe the Mayans will be right and on Dec 21, 2012 the world as we know it will end. Actually, the world I remembered was mortally wounded long ago; all I see now is the final death throes.

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I meant to add that if you include all those IOUs for the Big Three entitlements, the true total U.S. national debt is on the order of $59 trillion - and steadily rising.

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