So, I contacted them to see if they would admit it and stop beating this dead horse. If you still think otherwise, please reread the data in the previous paragraphs and get back to me.
This means only one thing: Faber and Schiff have been demonstrably wrong about the dollar’s collapse and hyperinflation. That’s nowhere close to hyperinflation, Weimar Germany or Zimbabwe at 79.6 billion percent a year. The independent Billion Prices Project MIT’s U S Daily Index shows inflation pretty much tracking CPI.Īnd even if you hang your hat on the controversial Shadow Government Statistics, inflation comes in at 6%, by one measure and 10% by another. Read Howard’s earlier column on why hyperinflation gurus were just plain wrong in .Īnd sorry to burst your bubble, folks, but since then, inflation has been pretty mild - the consumer price index is up only a little since July 2008. Treasurys, whose yields recently hit 60-year lows.Īnd hyperinflation? When I first wrote about this topic two and a half years ago, I pointed out that hyperinflation was a rare occurrence defined as 50% price appreciation per month. dollar index trades in the low 80s, about where it was five years ago, and investors worldwide can’t get enough of dollar-denominated U.S. Neither hyperinflation nor a dollar collapse has come remotely close to happening. They say all that extra money (which banks are holding as reserves) will spur hyperinflation and the collapse of the greenback. Schiff and Faber also took to task Greenspan’s successor, Ben Bernanke, for pumping $2 trillion into the system since the financial crisis began through two rounds of quantitative easing. Many of them - with good reason - blame the Federal Reserve under Chairman Alan Greenspan for keeping interest rates artificially low, producing cheap money that led to bubbles in stocks and real estate, as well as an explosion of debt-fueled consumer spending. Those comparisons have become articles of faith among hard-money conservatives who, like Schiff and Faber, support libertarian GOP presidential candidate Ron Paul. dollar and hyperinflation of the kind experienced in Weimar Germany in the 1920s and Zimbabwe a few years ago. Republican presidential candidate Ron Paul speaks to supporters at a rally in Des Moines, Iowa, in January.Īnd no doubt, events have vindicated most of their maverick views.īut since then they, unlike other permabears like Nouriel Roubini and Gary Shilling, have gone much further, warning repeatedly about the collapse of the U.S.
0 kommentar(er)
