NIA Warns Massive Inflation Could Hit the U.S.

FORT LEE, N.J., March 12 /PRNewswire-USNewswire/ — The National Inflation Association today released the following statement to its members:

“The United States today is in a short-term deflationary phase caused by forced liquidations, de-leveraging, going out of business sales, and other temporary factors.

It is our belief that the monetary policies of the Federal Reserve and United States Treasury will soon put an end to this deflationary phase, and we will see massive inflation in the U.S. that could ultimately lead to Zimbabwe-style Hyperinflation.

Media Alert: Hyperinflation Is Big Risk for U.S. Economy in 2010 — But That Could Be Good News for Investors, Says Forex Expert, Wayne McDonell (msnbc):
PEACHTREE CITY, GA – Hyperinflation, the scenario in which prices skyrocket while the value of currency falls, could be the next in a series of risks to the U.S. economy — but it would create opportunities for traders, says a forex expert. It would give these traders the opportunity to profit by selling the U.S. Dollar (USD) and the Japanese Yen (JPY) — the two currencies most likely to be devalued.

Total funds allocated by the Federal Reserve and United States Treasury during the financial crisis have now reached $10.3 trillion. Although only $2.6 trillion or 25.5% of these funds have so far been spent, it is our belief that the Federal Reserve has been taking worthless assets onto its balance sheet. Not only is it possible that the whole $10.3 trillion will be spent, but this could be just the tip of the iceberg.

The United States currently has an $11 trillion national debt which it has no way of paying back. Sure, we have an annual GDP of $14 trillion, but most of this comes from consumption and not production.

See also:
Glenn Beck: United States Debt Obligations Exceed World GDP
Federal obligations exceed world GDP

In the year 2000 when the United States was facing a bursting dot-com bubble, former Federal Reserve Chairman Alan Greenspan lowered interest rates from 6.5% down to 1%. The inflation Alan Greenspan created did not go back into dot-com stocks, but instead went into Real Estate and created the housing bubble. By current Federal Reserve Chairman Ben Bernanke taking interest rates from 5.25% down to 0-0.25%, we believe the Federal Reserve did not learn from its previous mistakes and is creating the next bubble. This time, instead of money flowing back into Real Estate, it is our belief that Americans will want tangible assets for their Dollars that they can hold in their hands, and we could see a rush into Gold and Silver.

The world is currently hoarding their U.S. Dollars because they perceive it as a safe haven. The fact is, the U.S. Dollar is fundamentally no different than the Zimbabwe Dollar. It is a fiat currency that is backed by nothing but confidence that its supply will be kept scarce and it will always be accepted as money.

However, with Ben Bernanke and Treasury Secretary Timothy Geithner seemingly willing to bailout every single financial institution in America due to unfounded fears of systemic risk, the confidence people have in the U.S. Dollar could quickly evaporate.

House Speaker Nancy Pelosi said on Tuesday that another stimulus package might be needed to help the economy and she directed House Appropriations Committee Chairman David Obey to begin drafting a new stimulus proposal.

Well, we all know that President Bush’s $170 billion stimulus led to oil and food prices surging to record highs. We haven’t even begun to feel the inflation that is coming from President Obama’s $787 billion stimulus. With another stimulus already being considered and no one there to keep Nancy Pelosi in check, we are practically guaranteed to see massive inflation down the road that could wipe out the savings of most Americans.”

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About us:

The National Inflation Association is an organization that is dedicated to preparing Americans for hyperinflation. The NIA offers free membership at and provides its members with articles about the economy and inflation, news stories, important charts not shown by the mainstream media; YouTube videos featuring Jim Rogers, Marc Faber, Ron Paul, Peter Schiff, and others; and profiles of gold, silver, and agriculture companies that we believe could prosper in an inflationary environment.


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