Some are warning that Hyper Inflation is coming

Not sure if I agree with this or not, because I do not believe that we can predict this sort of a thing; but it is a interesting read.

Those who refuse to learn from history are doomed to repeat it, said George Santayana, the philosopher. But this familiar maxim is being ignored this week by President Barack Obama and his fellow Democrats on Capitol Hill this week as they complete action on the chief executive’s proposed 2010 federal budget. With its unprecedented deficit approaching $2 trillion, this budget proposal is a certain prescription for hyper-inflation. So every senator and representative who votes for this monster $3.6 trillion budget will be endorsing actions that will turn America into the next Weimar Republic. For those too young to remember, that was the period in Germany in the years between the two world wars when people needed wheelbarrows full of money to buy a loaf of bread.

In a 1993 interview, Harvard law professor Friedrich Kessler described what living with Weimar hyperinflation was like: “It was horrible. Horrible! Like lightning it struck. No one was prepared….The shelves in the grocery store were empty. You could buy nothing with your paper money.” Thanks to the expanding profligacy on Capitol Hill, a version of such economic hell will likely happen here, according to two prominent economists. Johns Hopkins Professor Steve Hanke notes that the Federal Reserve’s balance sheet “has more than doubled in size since August…Unless the Fed shrinks its balance sheet,” he warns, “…inflation will roar back with a vengeance.”

via www.washingtonexaminer.com – Get ready for Obama’s coming hyperinflation.

Instapundit says that you do see gold prices going up, which might be a sign that the tea leave readers are shoring up, in case of a massive collapse. It is an interesting read. Some would say that this is nothing more than mas hysteria. by the dooms day folk. But it is an interesting fact that Obama has pour massive amounts of money into the system. It should be interesting to watch.

Update: Instapundit comments: “Actually, my point was that gold prices haven’t gone up particularly, as one would expect if hyperinflation were coming. Or, at least, if a lot of people thought it was coming.”

I stand corrected. Wow, The Glenn Reynolds commented on my Blog. I’ll never wash this Blog posting, ever. I guess he does read his incoming links!