Sherline: Be Very Afraid

**Terri** · #1 01-12-2009, 09:22 AM

By Harris Sherline
January 12, 2009

Unless our political leaders wake up and change course, we are headed for hyperinflation. We're not there yet, but I believe we are on the cusp, and when it happens, we will no longer recognize America as we know it.

The cause of this calamity was launched many years ago and has been continued by successive administrations, adopting policies of deficit spending.

Wikipedia defines hyperinflation as "...inflation that is 'out of control', a condition in which prices increase rapidly as a currency loses its value...A vicious cycle is created in which more and more inflation is created with each iteration of the cycle...(I)t becomes visible when there is an unchecked increase in the money supply (or drastic debasement of coinage) usually accompanied by a widespread unwillingness to hold the money for more than the time needed to trade it for something tangible to avoid further loss.

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social-isms · #2 01-12-2009, 11:19 AM

This is very scary.

My parents lived through hyperinflation. They were getting paid 3 times a day in cash and immediately using the money to buy food and goods. They would literally take time from their work day to do it.

There were 100 million dollar bills be printed. I saw one when I was a kid.

There isn't one American who knows what to do right now. If they say they do, they are full of it.

Inflation and hyperinflation will wipe out savings - which is at an ALL TIME high right now. The stock market is so topsy-turvy that people are having a tough time investing. Retirement plans have dropped 30-50% in value, seriously hurting the elderly and retired. Gold and other metals are an iffy investment.

The only good news is gas is down - but that is temporary also.

But therein lies the problem. There is not faith in anything and people do not know what to do. Every option seems to have a significant downside. So we are in wait mode.

I am sure Obama will save us all - yes that was sarcasm.

notoObama · #3 01-12-2009, 11:54 AM

"but the economically ignorant, bone-headed politicians who are in charge simply don't get it."

No truer words were ever spoken.

The American people are going to get the the government they deserve by voting in 'anger'. The Bush-haters of the world will finally see how just voting for a "new pretty face" who gives a good speech is going to ruin their lives instead of make it better.

Maybe they will mature enough to KNOW that someone who talks well but is cloaked in underhanded schemes and associates throughout his life is not someone you can trust to run the most powerful country in the world. Of course by the time they realize it, we may no longer be allowed to vote anyone else in.

FlaJim · #4 01-12-2009, 12:02 PM

These 'stimulus' and bailout packages will only serve to devalue the dollar and wreck the economy.

Much of what is taking place is a direct result of the real estate bubble that finally burst - a long overdue market correction. Easy credit, insisted upon by the feds, ran up the the prices of real estate to a point where no honest person could possibly justify them and keep a straight face. The mortgages were then packaged as securites that became worthless as debtors discovered they'd paid a lot for very little and began to default.

As for those who purchased homes and whose sob stories we're treated to ad nauseum in the news, no amount of government intervention is going to disguise the fact that they borrowed far more than they could ever hope to repay. The bailout of these people has already proved to be a failure as over 50% of them go into default again within six months.

State and local governments, dependent on property taxes, are all in favor of propping up the inflated real estate values in order to maintain the bloated tax levies they've come to enjoy.

No more bailouts and no more 'stimulus' packages. Let the free market work. It'll be painful for some but the pain will last a much shorter time than digging out of a mountain of new government debt and regulation.

oldjules · #5 01-12-2009, 12:15 PM

Quote:

But therein lies the problem. There is not faith in anything and people do not know what to do. Every option seems to have a significant downside. So we are in wait mode.

We can thank the Democrats and news media for people having no confidence in the economy.

It has to get a whole lot worse to come close to what it was in the early 40's. I was the youngest in my family and my sisters said it was much worse in the 30's and I know it was.

I have what I think is a 5 million mark bill from 1923 Germany and a 3 million mark from 1923. I am not sure if I am reading the numbers right ,but the million marks is clear enough.
Maybe I should take them to the bank and find out. If we keep printing money with nothing behind it we will have the same problem.

I was reading a article in the Wyoming Business newspaper that said the worlds wealth increased from 35 trillion in 2000 to 70 trillion in 2006.This was used as an example of what caused the global economic problems today. This is over my head, because I still think a dollar is worth what you can buy with it.

Dingbat36 · #6 01-12-2009, 12:18 PM

Quote:

"but the economically ignorant, bone-headed politicians who are in charge simply don't get it."

I beg to differ.........those in charge now know very well what they are doing. They want the ignorant "masses" afraid and dependent. It cements their control.

Obama has said that only government can "fix" what is wrong with the economy. That's like saying that an alcoholic can drink his way out of his problem! What crap!

ddrinsp · #7 01-12-2009, 02:27 PM

I am not an economist but certainly know enough to realize that unless 'the powers-that-be' stop policies of deficit spending, we are heading for a currency which has little or no value and out-of-control inflation. Americans are already struggling with rising costs of fuel, food and necessary consumer goods. Further bailouts and stimulus plans will only compound the problem. And as for 'Green Jobs' ... I'm too much of a lady to say what I feel about that!

Obama's statement that only government can "fix" the present problems with our economy is Socialist B.S. -- Marxist rhetoric.
PEBO and the liberals in charge want U.S. citizens to be ignorant, afraid and dependent -- it's called C-O-N-T-R-O-L .......

oldjules · #8 01-12-2009, 10:03 PM

Quote:

Obama's statement that only government can "fix" the present problems with our economy is Socialist B.S. -- Marxist rhetoric.
PEBO and the liberals in charge want U.S. citizens to be ignorant, afraid and dependent -- it's called C-O-N-T-R-O-L .......

Well said. A truer statement I have yet to see.

utexas · #9 01-12-2009, 10:16 PM

This is the third article I have read today in which I was told to ‘be afraid, be very afraid.’ It is as if the world is coming to an end, and sooner rather than later, if all these doomsday scenarios pan out. We seem to be heading for the brink and unable to stop or step away.

denisethemenace · #10 01-12-2009, 10:24 PM

Some of us are already there. My husband has a relatively well-paying job, but we have no credit at all and live on what he earns. My daughter noticed a couple of weeks ago that, when I go to the grocery store, I do not "shop" any more. I make a list, go and buy what's on the list, and come home. I can no longer afford to buy "name brands" of anything. And, with gas prices rising again, it's only going to get worse. We're in for a rude awakening, folks.