If (and when) we get to the point of hyperinflation...

[icon124]

What exactly do you think the Government is going to do with everything? They must be planning something as we speak...

I'm thinking PLENTY of price controls...Government taking control of pretty much everything and not letting us exchange our money for other currencies.

 

[Zippyjuan]

You mean we will not be able to use money to buy anything at all? How would they expect us to pay our taxes?

not letting us exchange our money

 

[icon124]

You mean we will not be able to use money to buy anything at all? How would they expect us to pay our taxes?

edited it...meant to say exchange for other currencies...like forced to hold the dollar

 

[Michigan11]

Oil is now at $117 a barrel, it was only weeks ago that it was just passing $100.

Look at diesel at the pump $4.30 here, and gas is $3.55 and climbing everyday it seems.

From this point, the additional price increases at the pump are driving up prices in everything rapidly and at the same time contracting/destroying the economy at a proportional rate. This is hyperinflation, the beginning stages of it.

I'm thinking gas is going to $5/gallon this year, not $4 like most are predicting. Diesel may be at $5 as well.

People are already reacting to these increases, by doing less, or working less, because they see a diminishing return on their labor. They aren't seeing their wages increase with inflation. Essentially things are beginning to fall apart as these increases cycle through the economy.

I see the beginning stages of hyperinflation right now. Prices were changing yearly, now monthly and already in some cases weekly. Once price change increases become daily, we are screwed.

 

[Zippyjuan]

edited it...meant to say exchange for other currencies...like forced to hold the dollar

So if I go to Europe I can't exchange the dollar for euros?
I hold the dollar since it is what we use in this country.
NIxon tried price controls- the did not work.

 

[Brent H]

Exceprt from http://news.goldseek.com/GATA/1208758200.php

Even dumbed-down Americans will not long suffer conditions of depression akin to those of the 1930s, let alone South American levels of inflation as well. Desperate people will ask questions and assign blame. Perhaps not just a few will abandon debt currency altogether and substitute silver and gold as their media of exchange. They and others will conclude that the Federal Reserve System is unconstitutional -- and therefore that its operations are arguably a complex of criminal offenses. (See 18 U.S.C. §§ 241 and 242.)

Many will realize that the establishment's scheme for replacing Federal Reserve Notes with a supra-national currency is a political crime on a more stupendous scale yet, because it depends upon destroying both the Constitution and the Declaration of Independence. Then an aroused people will take political action against the institutions and individuals responsible for foisting the funny-money scheme on their country.

On the other side, the establishment will not be idle. It will do anything and everything possible to maintain its position. Obviously the Constitution and the Declaration of Independence will be expendable, because the establishment has been trying to whittle away the former on a piece-by-piece basis over the years, and intends to do away with the latter at one fell swoop in the near future. So this country, as an independent nation, will be expendable too. And if this country, why not the freedom and prosperity of common Americans as well?

Will ordinary Americans -- at least 80 to 90 million of whom are armed -- meekly put up with a program aimed at their own country's assisted suicide? Why should they, when they have nothing to lose economically or politically? If they refuse to knuckle under, the establishment's only recourse will be to attempt to lock down the whole country under a para-militarized police state, perhaps with the assistance of "peacekeepers" from Canada and Mexico (for the employment of whom negotiations are apparently already in progress).

That is why careful observers conclude that the paranoia being generated by politicians and the big media over "homeland security" -- and the frenetic para-militarization of law-enforcement agencies at the national, state, and even local levels in the name of "homeland security" -- are not caused by or aimed at foreign "terrorists" at all, but instead target ordinary Americans in their own home towns.

The establishment is preparing to force justifiably angry Americans into line when its financial house of cards comes tumbling down, either in a controlled demolition or otherwise.

 

[Highland]

Guess it is time to buy that milk cow and start the garden!

 

[Carehn]

you must not have heard obama talk about all the price fixing he wants to implement. He calls it a helping hand though so it must be a good thing ( sarcasm ) . Last night i watched him on OPB. Its so bad! People buy the crap he says and they think all this Government control will make things better. One lady asked him about what he will do with the current monetary system and the debt based money we use. He had know idea what she was talking about and talked about getting the middle class out of debt.

 

[Zippyjuan]

What prices does he say he wants to fix? Oil and gas? Food?

 

[AceNZ]

If (and when) we get to the point of hyperinflation... What exactly do you think the Government is going to do with everything?

My thoughts are that it might go something like this:

-- Wage and price controls, which will induce shortages and black markets
-- Currency controls
-- Threats of imprisonment (and actual imprisonment) for those who don't comply
-- "Speculator" (investor) regulation/restriction
-- Rationing of fuel and food
-- Nationalization of key methods of production; farms might be first on the list
-- Increased banking legislation (forcing them to loan to unqualified borrowers, etc)
-- Forced restructuring of debt (perhaps eliminating fixed-rate mortgages)
-- New Deal-like government make-work programs
-- Confiscation of private property: pension funds might be first ("those people will just get social security eventually anyway")

I don't think the FEMA camps will ever be used to "round people up." I think they'll be used to house the hundreds of thousands who will begin to starve to death as a result of government intervention in the free markets. People will BEG to go to a FEMA camp, where they might be able to get some food.

Getting to know (and being extra nice to) your local suppliers who might become key players in the black market would be a very good idea.

Something else to think about: how many of the everyday financial systems we use would break down if everyday prices started to have 6, 7 or 8+ digits and if prices were going up by 100% per month? Cash registers couldn't handle it. Gas pumps. Credit card limits. Credit cards in general. Calculators. Financial software. Loans. Checks. It would be very messy.

 

[Libertytree]

"I don't think the FEMA camps will ever be used to "round people up." I think they'll be used to house the hundreds of thousands who will begin to starve to death as a result of government intervention in the free markets. People will BEG to go to a FEMA camp, where they might be able to get some food."

I think you're spot on with that one, with the exception of us rabble rouser sorts, then again, they've already got our number.

 

[GunnyFreedom]

you must not have heard obama talk about all the price fixing he wants to implement. He calls it a helping hand though so it must be a good thing ( sarcasm ) . Last night i watched him on OPB. Its so bad! People buy the crap he says and they think all this Government control will make things better. One lady asked him about what he will do with the current monetary system and the debt based money we use. He had know idea what she was talking about and talked about getting the middle class out of debt.

One Point Bulletin?
Ornery Pappas Baking?
Only Petrol Bubbles?
Omni Pistol Bearing?

 

[Deborah K]

What exactly do you think the Government is going to do with everything?

That's easy. They're planning to merge us economically and politically with Canada and Mexico. They'll make the situation so bad that the dumbasses who believe everything they hear in the media will be begging for the government to do something, and this will be their answer - One ID for all three countries- that's the point of the Real ID act - and one currency - that's the point of destroying the economy, and a tri-lateral government which will supercede our beloved Constitution. There is already a model parliament in place using University students from all three countries: http://www.fina-nafi.org/eng/triumvirat07/

Big government = no sovereignty + no individual liberty.

God help us if we don't succeed in this movement.

 

[Deborah K]

Oil is now at $117 a barrel, it was only weeks ago that it was just passing $100.

Look at diesel at the pump $4.30 here, and gas is $3.55 and climbing everyday it seems.

From this point, the additional price increases at the pump are driving up prices in everything rapidly and at the same time contracting/destroying the economy at a proportional rate. This is hyperinflation, the beginning stages of it.

I'm thinking gas is going to $5/gallon this year, not $4 like most are predicting. Diesel may be at $5 as well.

People are already reacting to these increases, by doing less, or working less, because they see a diminishing return on their labor. They aren't seeing their wages increase with inflation. Essentially things are beginning to fall apart as these increases cycle through the economy.

I see the beginning stages of hyperinflation right now. Prices were changing yearly, now monthly and already in some cases weekly. Once price change increases become daily, we are screwed.

Oil was $30.00 a barrel at the beginning of the Iraqi occupation. Lotta good it's done us invading that territory.....

 

[kyleAF]

So if I go to Europe I can't exchange the dollar for euros?
I hold the dollar since it is what we use in this country.
NIxon tried price controls- the did not work.

Of course they won't work. That's the problem. We'll be stuck with the difficulties.

You could be limited in investments overseas to avoid expatriation of capital. You could be limited in the amount of money you can physically take with you overseas (assuming air travel is still affordable in dollars). You could be prevented from cashing out foreign currency-denominated accounts, as a very real threat if our economy goes really south will be foreign infusions of capital to buy our assets on the cheap.

The government can do quite a bit that "doesn't work". They pretty much do things like that all the time.

 

[Libertytree]

Deb is the sharpest knife in the drawer, it's a shame there ain't a whole lot like her. Primarily women but people in general too.

 

[RSLudlum]

so...could the price fixing be done 'legally' by subsidizing those competitors within an industry that agree to adhere to a price-fixing strategy, thereby totally nullifying the reason behind price-fixing bc. those subsidies would be funded through increased tax rates??

 

[GunnyFreedom]

so...could the price fixing be done 'legally' by subsidizing those competitors within an industry that agree to adhere to a price-fixing strategy, thereby totally nullifying the reason behind price-fixing bc. those subsidies would be funded through increased tax rates??

and then printing more money to give out as incentive checks so people could afford the subsidized food

 

[Libertytree]

It can be done 'legally' if you don't get caught, lol. The laws of gravity, physics and economics are constants in the universe, in time the cream will rise to the top.

But that don't mean it's gonna be pretty.

 

[RSLudlum]

Know of any good companies that make 'rose colored glasses' and clothes pins for the stinch that's coming our way?