Skip navigation

As we continue the buying spree of Treasuries under the auspices of the Federal Reserve Bank and there is growing evidence that economic growth will be much more gradual than first anticipated, hyperinflation- the sum of all economic fears remains a risk.  Ben Stein, in his latest piece from the NY Times, takes a glimpse of the future following the subsequent collapse of the American economic system.  He identifies the primary source of decline- a political class that, under the guidance of a stimulus-oriented Obama administration, undermines the entire economy through spending sprees and a degradation of the currency.  Although the collapse of the dollar may not come in weeks, there has been strong momentum lately in world currency markets that signifies a reversion to dollar-denominated assets.  Yields on 10 and 30 year treasury bonds have been surging, indicating an exhaustion of investors willingness to fund this debt-ridden nation.  There has been no real political leadership on this issue, either.  As KargBlog evolves, we will shift our focus to this very real possibility of runaway inflation and the indicators which could signify such events.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: