I am 100 percent sure that the U.S. will go into hyperinflation – Marc Faber
Thursday, June 4, 2009 10:56
Below is an excerpt from a piece in Bloomberg today.
The U.S. economy will enter “hyperinflation” approaching the levels in Zimbabwe because the Federal Reserve will be reluctant to raise interest rates, investor Marc Faber said.
Prices may increase at rates “close to” Zimbabwe’s gains, Faber said in an interview with Bloomberg Television in Hong Kong. Zimbabwe’s inflation rate reached 231 million percent in July, the last annual rate published by the statistics office.
“I am 100 percent sure that the U.S. will go into hyperinflation,” Faber said. “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.”
Read the full story on Bloomberg
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Brian Mallard says:
June 5th, 2009 at 9:17 am
Hyperinflation? No in my life time in USA! Better listen to Henry C.K. Liu on 6/25/2009 : “What we will have going forward is not Weimar Republic type price hyperinflation, but a financial profit inflation in which zombie financial institutions turning nominally profitable in a collapsing economy. The danger is that this unearned nominal financial profit is mistaken as a sign of economic recovery, inducing the public to invest what remaining wealth they still hold only to lose more of it at the next market melt down which will come when the profit bubble bursts.”
Arthur Borges says:
June 18th, 2009 at 1:43 am
Henry CK Liu is the best economic & financial oracle I know.