3.05.2009

Marc Faber: Default or Hyperinflation



HT: Skeptical CPA.

This is exactly what I was talking about in the October post "What comes next":
As the recession deepens, job losses mount and business activity drops, cutting tax revenues and making debt service on the $11 trillion+ debt impossible. Uncle Sam becomes Casey Serin, and Treasury bonds are no-job, no-income, no-assets liar loans. The government faces two choices: default or the slow puncture of inflation. Inflation is probably the lesser of two evils, but it's no picnic, as Argentina, Zimbabwe, and Weimar Germany can attest.

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