Obama's Coming Hyper-Inflation: What Will You Use For Money To Feed and Shelter Yourself?
If you are a government employee, with wage increases tied to inflation, you will do better than most. But unless you are paid increased wage paychecks every day, it will be easy to fall behind Obama's coming hyperinflationary expansion. Anyone living on a fixed income, or on savings, will have a very hard time of it.
It is neither too late nor too early to think about items of barter and exchange that might be widely in demand under an Obama hyper-inflationary reich. Old-fashioned barter markets are likely to spring up in towns, cities, and neighborhoods of all sizes. What could you offer in such a market to keep your children and yourself clean, dry, warm, safe, and well-fed?
This is not a theoretical discussion. Obama is doing his part to bring on this scenario. Now you must think about what you need to do about it.
More interesting thoughts here and here. Update: A look at Obama's tax pains.
The hyperinflation meme is rising on the Media-Attention-Meter. A lot of commenters treat hyperinflation as an event horizon, beyond which no information is available. That's not exactly true.If you have a large debt, and have an income linked to inflation rates, you may be able to pay a huge debt off very rapidly, as Zendraken mentions above. Otherwise, you may be in a heap of trouble. What will you use for money when Obama hits the fan?
There is a pattern to hyperinflation, and while it can be really nasty, it is not the end of the world.
It could, however, be the end of your retirement account, assuming it consists of treasuries, mortgage-backed securities, derivatives, or other abstract financial instruments that are not based on anything real. U.S. Dollars fall squarely under that category.
And I've been meaning to post something at least a little positive for once: On the plus side, if you can maintain income increases through the hyperinflation phase, you could possibly pay off your debts really quickly. _Hyperinflation-Watch_via_PowerandControl
It is neither too late nor too early to think about items of barter and exchange that might be widely in demand under an Obama hyper-inflationary reich. Old-fashioned barter markets are likely to spring up in towns, cities, and neighborhoods of all sizes. What could you offer in such a market to keep your children and yourself clean, dry, warm, safe, and well-fed?
This is not a theoretical discussion. Obama is doing his part to bring on this scenario. Now you must think about what you need to do about it.
More interesting thoughts here and here. Update: A look at Obama's tax pains.
posted by al fin at 9:03 am
2 Comments:
The coming hyperinflation may destroy the US power grid. Locally, Arizona Public Service has been on financially shaky ground and has requested a rate hike in order to maintain its credit rating.
I foresee a few possible outcomes for APS, and by extension much of the private electrical grid:
1. Operating on a cash basis, requiring a sudden increase in rates, which may not be approved by the state corporation commission.
2. Temporary blackout lasting less than two weeks.
3. Blackout lasting longer than two weeks, which would cause damage to the generators here in AZ, and would possibly permanently reduce the capacity of the system here in AZ.
4. Failure
5. Some combination of 1-3 while being absorbed by SRP, the public electrical district that serves the eastern half of the metro area. In fact, the Obama depression may make it easier to nationalize businesses that are ailing due to the previous credit bubble and the current downturn. Whole sectors of the economy could be acquired on the cheap.
One thing is certain, since APS owns the grid in the western half of the Phoenix Metro Area, which is poorer and browner, I foresee a massive increase in electrical theft, with such theft protected either by gangs or by payoffs to APS employees. Electrical theft is a tradition in Mexico, and much of Latin America.
Arizona will fare better than California, since we are a net exporter of electricity, while California is a net importer. When the Federal government goes bankrupt all politics will become very local, and AZ may cut off California's supply of imported electricity and maybe even imported water.
I shudder to think what would happen if California had a complete grid collapse, with no power to pump fuel in pipelines, or to run the states extensive irrigation system.
In Germany in 1945 trade was carried out in cigarettes, for small trades & bottles of brandy for large.
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