Deflation or Hyperinflation? Don't bet on it...

Popular opinion continues to seesaw back and forth between economic armageddon by way of deflation or hyperinflation. While both pose serious threats at this point in time, there is little chatter regarding a phantom menace which has receieved far less coverage: sudden and imposed currency devaluation. Devaluation seems to match with the muted warnings of impending bank holidays. With the absence of a gold standard, a devaluation would likely involve other currencies in a surprise, coordinated effort.

Dollar Devaluation is Inevitable... Just like in 1934
by I. M. Vronsky
Editor-in-Chief, Gold-Eagle.com
April 3, 2009

It is evident to all the US economic environment is an unmitigated disaster. In fact we seem to be hell bent for leather falling into another Great Depression (the recent Bear Market Rally in Wall Street notwithstanding). This begs the question: What can President Obama do to avert the excruciatingly sad events of the 1930s?

Here are the economic problems causing havoc today in the USA:

- The banking system is collapsing
- Tidal waves of foreclosures sweep the country
- Tumbling housing prices
- A bear market ravages Wall Street stocks
- Massive unemployment throughout the nation
- Overall we are in a deflationary spiral
- Interest rates are abysmally low
- Consumer confidence is bottomless

And what were the economic maladies causing economic havoc in 1933?

- The banking system was collapsing
- Tidal waves of foreclosures swept the country
- Tumbling housing prices
- A bear market ravaged Wall Street stocks
- Massive unemployment throughout the nation
- Overall we were in a deflationary spiral
- Interest rates were abysmally low
- Consumer confidence was bottomless

As Yogi Berra might have expressed it:
"It's déjà vu all over again!"

Any differences some ill-informed might mention are irrelevant and immaterial to the overall burdens weighing upon the USA today.

Read More Here: http://www.financialsense.com/editorials/vronsky/2009/0403.html