Wednesday, July 28, 2010
Victor Sperandeo warns of hyperinflation
"Trader Vic" Sperandeo is on CNBC describing the historical pattern for the onset of hyperinflation, and says the conditions for such a runaway inflation are now here in the US.
We're getting more familiar with these types of extreme forecasts as our economy drifts into unchartered territory. It seems market watchers are almost growing accustomed to hearing predictions about a coming hyperinflation or a looming deflationary depression.
Still, it should be noted that Sperandeo is a serious guy and a very serious researcher (my observations based on reading his work and listening to his interviews). His knowledge of economic history and the nature of money creation and business cycles is profound. So while the forecasted event is an extreme and rare event, don't dismiss Vic as "just another scaremonger".
It is striking to note that while Vic is arguing his case for the likelihood of hyperinflation, in effect the spiralling collapse of a society and an economy, he is interrupted by the CNBC girl who wants to know "what the trade is" in this scenario. Cable TV never ceases to amaze.
Related articles and posts:
1. Dying of Money: causes of inflation - FSN broadcasts via Finance Trends.
2. Interview: Victor Sperandeo on hyperinflation - Tischendorf.com.