The post on Obama and inflation in Zimbawe has received 257 hits so far. Well, here are a couple experts who agree with me.
Peter Schiff calls the US economy a “ponzi” economy. He warns that stimulus package suggested by Congress will lead to a “unmitigated disaster”. He warns of hyper inflation (not just double digit inflation) similar to Latin American countries or to the Weimar Republic. He compares the interventionist government with Hoover and Roosevelt which is leading us into a new depression.
George Melloan predicts stagflation in his op-ed for the Wall Street Journal, “Why ‘Stimulus’ will mean inflation.” His reason is that the US government has already borrowed over a trillion dollars back from the Chinese and Japanese the money that they made by selling us their manufactured goods. Now, because we are not buying as much from them, they won’t have any more money to lend to us. So to be able to pay for the 1 trillion dollar deficit planned in the budget before Congress, the Federal Reserve will have to print the money.
Might I add at this point, that with so many people losing their jobs, the US government now faces a new liability of unemployment cheques. These worker will be producing nothing in the economy but they will be constitute a new burden on the government. This means that the US government plans to spend more but take in less.
The only thing I know to do is to make sure a significant portion of your total holdings is in gold, which cannot be printed. But I am no expert.
Now the real question is this: Is Obama stupid when it comes to economics? Or is he intentionally try to take us down the road of economic disaster in order to try to seize power? (The precedent for this would be the economic disaster of the Weimar Republic in Germany, which led to the regime of Adolf Hitler).