Is U.S. Bound for Hyperinflation?
By Paul Nowak • Jun 8th, 2009 • Category: Market UpdatesIn the last few weeks, more and more attention has been given to the prospect of inflation because of the massive stimulus package pushed through by the U.S. government. The most pessimistic inflation outlook recently came from Marc Faber, the investor who publishes the Gloom, Boom and Doom report.
“I am 100 percent sure that the U.S. will go into hyperinflation,” said Faber in recent Bloomberg article (May 27, 2009). “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’s an interesting graph of the Consumer Price Index (Estimate) dating back to 1800. (Source: ChartingStocks.com)
(click to enlarge)
