Monday, May 4, 2009

Massive Inflation on the Way

As we all feared massive inflation is on the way according to Warren Buffett an Obama supporter. For the full article in NEWSMAX  MONEYNEWS  click here



Buffett Sees Massive Inflation to Handle Staggering Debt

Monday, May 4, 2009 2:34 PM

By: Dan Weil



Faced with a staggering national debt relative to the rest of the world, Buffett says the U.S. government will do what every country that has denominated its debt in its own currency has done — "inflate its way out of the burden of that debt."
The explosive rise of the U.S. budget deficit and debt burden will lead to serious inflation down the road, says billionaire and Obama supporter Warren Buffett.
The Congressional Budget Office predicts that government debt will peak around 54 percent of GDP in 2011.
But Buffett told CNBC Monday morning that the ratio could surpass 80 percent — unless there are significant spending cuts or tax increases.
After a testy exchange with Sen. Judd Gregg, who suggested that President Obama’s plans to hike federal spending would only increase the nation’s staggering national debt, Buffett relented by stating that, in the end, the U.S. government simply will do what every other government has done in such circumstances.More

1 comment:

  1. Who are the feds going to sell treasury bills to and at what price? China has been a major buyer in the past, but they aren't looking to the US anymore but are buying elsewhere.

    I think hyperstagflation is exactly what we’re going to face: prices will go up as the dollar collapses, but we won’t have more dollars in our pocket to pay so demand will collapse, further depressing employment and wages.

    It’s an economic flat-spin.

    The plan is enslavement via slow deflation of freedoms that bread & circuses fed citizens will willingly relinquish as they grow more needy of federal ‘help’. We are witnessing a ‘slow motion’ coup fashioned to end a Constitutional Republic. We The People are no longer the sovereigns and the rest has to be instituted slowly, gradually ratcheting up the economic pain to persuade the usurped to cooperate with the new world about to roll over them.

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