Bankruptcy

Hyperinflation or Continued Deflation?or one followed by the other?

By mcbride

One of the economists which I read regularly is Marc Faber.  He is not too well known, but always has an interesting ?take? on the US economy, as well as the world?s economy.  I saw an article about his views and I thought that I would reveal to you his thoughts on the US economy:  hyperinflation.  ?The U.S. economy will enter ?hyperinflation? approaching the levels in Zimbabwe [Zimbabwe?s inflation rate reached 231 million percent in July] because the Federal Reserve will be reluctant to raise interest rates, investor Marc Faber said?. ?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.??

Here is a link to this article: http://bloomberg.com/apps/news?pid=20601087&sid=aIeLg1djbBps&refer=home

Michael

Full post as published by Texas Lawyer Blog on May 29, 2009 (boomark / email).