The Upcoming Hyper-inflationary Great Depression
David Schectman
SilverBearCafe.com
On Friday morning I had a long conversation with my friend, Jim Cook. I went to work for Jim in 1983 at Investment Rarities and we quickly developed a friendship apart from work. Jim is a well-learned man, a true Libertarian and a student of Ludwig von Mises. During our conversation, for the first time ever, he told me that he was afraid things had gone beyond the point where they could be fixed, beyond the point of no return.
I have maintained for the last year that the problems could no longer be fixed, that it was a mathematical certainty that were on the path toward the destruction of the dollar and the most likely course of events would be a hyper-inflationary Great Depression.
Bill Holter has recently voiced the same view in these pages as well. Jim proceeded to read a few pages from von Mises seminal work, Human Action, where he discussed monetary economics and inflation. If I didn’t know in advance, who Jim was quoting, I could easily believe the author was writing a critique of our economy and the inflationary consequences of what the central bankers are doing now, in 2012. Von Mises was a visionary and the father of Austrian Economics.
The German bankers, pre-1922 laughed at his statement that a German Mark would be worth one-millionth of what it was at that time. Actually, the Mark, by 1923 was worth one-billionth of what it was worth after WWI.
You think it couldn’t happen here? They thought it couldn’t happen there either.
The Rest…HERE
