The National Inflation Association, producer of “Meltup” and other documentaries, grimly says the U.S. is now in the beginning stages of a currency crisis.
According to the Federal Reserve’s meeting minutes of Sept. 21st, the U.S. central bank is now trying to boost inflation expectations. They’re publicly declaring – via the mainstream media – that they desire higher inflation rates to encourage people to spend their money rather than save it.
The NIA believes that if the Fed doesn’t raise interest rates dramatically from their historic lows, the U.S. could be in a hyperinflationary crisis by the end of 2012. The Fed is saying they want inflation so when hyperinflation does occur, it will seem to the general public that they still have control. NIA believes that since gold is up 19% and silver up 38% since August, the currency crisis is now underway.
The reason it hasn’t occurred already is because the world has been hoarding dollars because of most people’s belief that they’re a safe haven. In fact, many investment advisors advise their clients that U.S. Treasuries are by far the safest haven in the world since they’re backed by the “full faith and credit of the U.S. Government.” Most investment advisors recommend gold holdings should comprise of no more than 5% of one’s investment portfolio.
NIA believes this is foolish advice and thinks investors’ portfolios should be 100% in assets that will retain or increase in value during a hyperinflationary crisis.
And with China and Japan threatening to pull the plug on the U.S. dollar, the only way to pay for government spending will be massive money printing – or dollar devaluation. This “monetary inflation” will only lead to “price inflation,” which will be devastating to the middle class. Wealthy individuals won’t be affected as much, especially if they educate themselves and plan accordingly.
Plans by the administration to reduce our nation’s budget deficit are based on erroneous projections NIA believes…namely, 5.58% annual GDP growth and an interest rate of 4.1% on the public debt. NIA thinks the only way we’ll see that kind of growth right now is through massive inflation.
When inflation does spiral out of control, interest rates will naturally rise and make the cost of servicing the debt that much more.
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