Even 10000% is a far cry from 231m% But I get your point... Inflation is broadly monetary, but supply/demand still plays with respect to individual markets as well.
U.S. Inflation to Approach Zimbabwe Level, Faber Says
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Even 10000% is a far cry from 231m% But I get your point... Inflation is broadly monetary, but supply/demand still plays with respect to individual markets as well.
As an austrian economist Faber is probably of the opinion that disbalances in an economy should be allowed to be to be dealt with by the free market not by government intervention.
If nations decide to take the interventionist path anyway chances are prety high according to the Austrian school you will end up with a total collapse on all structural levels at some point in time regardless of an nations economy's former strength or the size of guns it owns.
It's just what these fundamentalists believe.
Witnessing the economic policies aplied by the US government as of late and taking into consideration the weakness of the US dollar over the last few decade(s) and no intention by the FED to actively pursue a strong dollar policy it should come as no suprise to those who follow Faber more closely for him to predict such dire future for the US economy and it's currency.
Having said that ofcourse their is a level of exageration in his Zimbabwe reference but then again economics have become entertainment as Faber is well aware of and it is not uncommon to use some hyperbole to make a point.
He said the Dow could go to 1 milion but that doesnt means he really sees it happening.
The most dire predictions I have seen him make on future inflation and economic upheaval as the most probable negative scenario is a goldprice of 3- to 5000$ an ounce on the US government defaulting be it actually if not by using the printing presses as last and final resort.
Error 1:. EUR was issued at about 1.18. USD dropped to about 1.61 if I remember correctly, lazy to check now. That a "normal" 36% drop.
Error 2: Currencies drop against other currencies. Commodities are valued in currencies. When a commodity price goes up, that does not mean currency goes down.
Error 3: Oil rose from $35 in 2004 to about $150 in 2008, that's about 325% but that was due to high demand and some speculation, not a dollar problem.
Prepare for a EUR collapse when people realize that the EU is a house of cards. An economic union without coherent financial and political objectives is doomed to disintegrate unless the states are federalized under a common rule, which will not happen.
'An economic union without coherent financial and political objectives is doomed to disintegrate unless the states are federalized under a common rule, which will not happen.'
I do not think so, EU can very well be an economic union and keep political and cultural items on the back burner and even on the 'ignore' mode until and unless some country turns into a commie or fascistic system. Then ofcourse they can be kicked out fast.
I do not think so, EU can very well be an economic union and keep political and cultural items on the back burner and even on the 'ignore' mode until and unless some country turns into a commie or fascistic system. Then ofcourse they can be kicked out fast.
1:EUR to USD (Interbank rate)
10/26/2000 0.82850
07/16/2008 1.59390
http://www.oanda.com/convert/fxhistory
2: Be that as it may the rise in commodity prices these last years have been felt far less in stronger currencies then in the $.
3: Same as number 2 and oil was at below 20$ in 2000 so that's at least a 600% rise in $ but anyway those are just numbers the picture is clear I guess.
As far as the Euro collapsing? Could very well be but the results would be just as dire as a $ collapse for both sides of the ocean.
Europe is the US biggest trading partner and vice versa.
Furthermore with the dollar being +60% of global reserves but dropping and the Euro making up for 20% and rising of global reserves a collapse in either of them should send shokwaves through the system which should make the Lehman failure look like a walk in the park so let's just hope it doesnt happen in our lifetime right.
Quote from toc:
'An economic union without coherent financial and political objectives is doomed to disintegrate unless the states are federalized under a common rule, which will not happen.'
I do not think so, EU can very well be an economic union and keep political and cultural items on the back burner and even on the 'ignore' mode until and unless some country turns into a commie or fascistic system. Then ofcourse they can be kicked out fast.
toc,
There is a rise of right wings many places in Europe. One big problem of EU is uncontrollable immigration. Things will get worse. The whole EU thing was a scam art by German-French axis to lure in states to abolish their currencies in exchange for giving them surplus money to buy back their oversupply. Now nobody has money any more and new countries demand cash in exchange for little spending.
I give it a few more years, maybe 5 or so, before Italy and Spain (huge unemploynment there) pull out. Then others will follow because they will need a way of a currency they can devalue on demand to help exports, like Portugal and Greece.
EU is a wealth-transfer mechanism. I wonder why people do not see that. Money flows from poor nations to industrial nations.
If the European union has a crime problem then why does the US has the largest incarceration rate of the world?
5% of the world population yet a wopping 25% of the world's prison population.
In the meanwhile in the Netherlands prisons are closing for lack of criminals but I guess that's just because there is no law to obey anymore as chaos and right wing neo nazi's rules the streets of Amsterdam right.
http://www.nrc.nl/international/art...rlands_to_close_prisons_for_lack_of_criminals
Anyways, Italy and Spain leaving the euro would be a good thing as far as the currency is concerned. The less pressure from weaker countries the more the ECB can persue sound money policies as the good old Bundesbank perscribed.
I have a One Hundred Trillion Dollar bill from Zimbabwe. You cannot, of course, buy anything in Zimbabwe or anywhere else with it. They give them out to the tourists to amuse them. In case you are wondering, the cape buffalo is on the hundred trillion.
I suppose inflation is limited by the usual physical size of paper money. At some point, it would no longer be possible to fit all the zeroes across the top of the bill in the usual font size.
I suppose inflation is limited by the usual physical size of paper money. At some point, it would no longer be possible to fit all the zeroes across the top of the bill in the usual font size.