Hyper-inflation like Zimbabwe's
This is scary:
"Investor Marc Faber said on May 27 he was “100 percent sure” that U.S. prices may increase at rates “close to” Zimbabwe’s gains, and the U.S. economy will enter “hyperinflation” because the Federal Reserve will be reluctant to raise interest rates. Zimbabwe’s inflation rate reached 231 million percent in July, the last annual rate published by the statistics office."
You should read the article in Bloomberg. NOW is the time to buy stocks, bonds, and currencies, while they're still cheap.
Labels: finance, government, interesting, politics
posted by Becky @ Tuesday, June 16, 2009
2 Comments:
Suppose the inflation rate is only 300%. Would you say Marc Faber's prediction was wrong?
That depends on the definition of "close" in this context. If our inflation rate is only 300%, I doubt we'll hear anyone saying, "Wrong, inflation breath! That's nowhere near 231 million%!"
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