Efforts to avoid a deflationary depression will probably produce the opposite — a nasty bout of inflation, says John Williams of Shadow Government Statistics, who advises hoarding gold and even Scotch to barter. Alistair Barr reports.

Marketwatch, 2/12/2009

Category: Currency, Economy, Inflation, Video

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4 Responses to “$100 Bills As Toilet Tissue?”

  1. Chuck Ponzi says:

    I have a hard time (from an economic perspective) seeing how in the current environment with poor employment and deflated assets how we can translate that into sufficient spending to drive hyperinflation.

    In the scenario noted above, it would be akin to us devolving back into a 3rd world country where there is a massive divide between rich and poor.

    I’d love to look back on this in 3 years and see if there was even an inkling of that happening.

    Pray tell, just where are people going to get this money to fuel inflation? We are all bankrupt.

    Chuck Ponzi

  2. akrowne says:

    That’s not really how it works, Chuck (I recently had the same assumptions and have changed my mind). It’s less a matter than the initial rate of change in the quantity of money than the change in confidence in that money. Once confidence plummets, some market or even political action serves as a “trigger,” then exchange rates fall, flight to real goods starts, and government may be forced to start (literally) printing to continue to operate.

    I reckon the US could have severe inflation and dollar devaluation without printing a single additional dollar at this point. It would become “hyper” if the political willpower does not exist to exercise restraint. As the actions of the past year and a half show, there is not a whole heck of a lot of that stuff resident in the political class.

    For a chilling walk through the dynamic discussed above, check out this free hyperinflation book we scanned and put online.

  3. drmike says:

    We get some of the spending from borrowing. how much you ask? i am sorry to tell you:


    We get some of the spending from printing money. how much you ask? i am sorry to tell you:


    These two videos show us where the US dollar is going via massive devaluation. I pray I am wrong. I believe I am not.

    Dr Mike

  4. drmike says:


    first video should have been


    Good news for me though, because of my mistake I have been offered a job in the U.S. Treasury!!