U.S. Hyperinflation Warning, Part I

Hyperinflation (i.e. the U.S. dollar going to zero) is not a “possibility” for the U.S. economy. Rather, it is an absolute certainty. Indeed, as was clearly demonstrated in a previous commentary, the U.S. dollar is already worthless, based upon three, distinct analyses of the dollar’s fundamentals.

This future destiny of the dollar is also graphically depicted, in one of the Federal Reserve’s own charts:

The mere shape and magnitude of this extreme, exponential function is a classic/obvious representation of a hyperinflation-in-progress. Any exponential function this extreme is a mathematical definition of the phrase “out of control”. Not only can this money-printing never be undone, there is no way to reverse/alter the consequence: hyperinflation.

Even if the U.S. government or Federal Reserve simply “pulls the plug” on their ultra-insane/ultra-extreme money-printing, the deflationary collapse which would be triggered would necessitate a new wave of hyperinflationary money-printing (to “bail out” the U.S. economy), unless the government – and the bankers – were willing to accept all of the following, catastrophic consequences:

1) Complete debt-default of the U.S. economy, and thus the instant vaporization of the U.S. Treasuries market

2) Total collapse of U.S. equities markets

3) Total collapse of the “derivatives market”

4)      A domino-like collapse of most/all of the bankers’ other, fraudulent currencies

5)      A Soviet Union-style disintegration of the U.S. war-machine

6)      The Mother of All Depressions in the U.S., along with all the civil unrest and political upheavel which such an economic catastrophe implies.

Because it is extremely unlikely that either the One Bank or its servants in the U.S. government would ever be willing to (voluntarily) accept the consequences of “pulling the plug” on this Ponzi-scheme economy; it is reasonable to conclude that hyperinflation is the only, possible economic outcome for the United States.