Art Cashin – We Are At Risk Of A Frightening Hyperinflation

Saturday, October 13, 2012
By Paul Martin
October 12, 2012

Today 50-year veteran Art Cashin shocked King World News when he issued the following warning concerning hyperinflation: “I think you are certainly at a ‘flashing yellow alert.’ You have in place a variety of things that could begin to react somewhat domino-like.”

Cashin, who is Director of Floor Operations for UBS ($612 billion under management), also warned, “There are some potentially eerie parallels (today vs the Weimar Germany era).” He also cautioned, “There is a kind of delayed effect (from all of the money printing), and you want to watch very carefully.”

Here is what Cashin had to say: “I can’t believe things are that well managed. There’s a Three Mile Island lurking everywhere, just when you think you have all of this stuff nailed down. I wrote about the Weimar Republic a little earlier this week and one of the notes I pointed out was that even when they were printing money, literally printing, the inflationary spiral didn’t happen instantly.”

Art Cashin continues:

“It (the inflationary spiral) was in fact delayed for a couple of years. But once it started, it could not be taken back. So here in the United States and in the European Union, there are very few, if any, signs of inflation because people are so concerned (that they are hoarding money).

Listeners (and readers) will have to keep an eye on the velocity of money. Watch figures like, here in the United States, the M2 (figure), and see if it begins to grow through velocity, and get very cautious at that point. There are some potentially eerie parallels (today vs the Weimar Germany era). The United States trauma was unemployment and deflation (in the 30s), but in Germany in the 20s, it was money that ruined an entire society.

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