Author of The Financial Physician
This guy is not your average gloom and doomer (like me), he has been around the block and understands economics and monetary policy. He is sounding the same message I have been warning you about, that the potential is there for a hyper-inflationary event. Like me he says he hope he is wrong, let’s hope we are both wrong.-Lou
Victor Sperandeo warns of hyperinflation
He traded for George Soros and Leon Copperman during his 40 years in business and his Trader Vic books are the stuff of legend.
There never was a recovery, just a bit of stabilization when the government and the Fed injected over $ 3 trillion into the economy via bailouts and Fed buying of toxic assets from banks. If we are in “recovery” the GDP should be growing at 5% or better, not 2.4% (which will most likely be revised lower). I look for the 3rd quarter to be slightly negative and the 4th quarter to be -3%. Get ready for financial crisis, Part 2.-Lou
Recovery lost speed in the second quarterGDP reading of 2.4 percent most sluggish showing in nearly year
Here is a link to the video of my appearance on “Better Connecticut” on WFSB in Hartford yesterday afternoon.-Lou
This is one scary chart and one of the reasons I have been so gloom and doom. This debt is unsustainable and will keep the economy in the deep chill for a long time.-Lou
Raising taxes now is economic suicide. Most families will feel the adverse effects of a tax increase in one way or another. Here is what is in store unless Congress acts this fall.-Lou
Expiration of Bush Tax Cuts Would Cost Families Thousands in 2011, Study Shows
Millions of families will be faced with thousands of dollars in tax increases if the Bush tax cuts are allowed to expire at the end of the year, according to estimates from the nonpartisan Joint Committee on Taxation.
This excellent piece by Greg Hunter describes the serious state of the FDIC and the banking system. Failures are accelerating and the cost to the FDIC is soaring at an alarming weekly rate. Soon it will be the taxpayer footing the bill replacing lost deposits with freshly printed money.-Lou
Banking Disaster Largely Ignored By Mainstream Media
The restaurant business is tough in good times, these times are killing the restaurant business.-Lou
5,200 restaurants closed in the U.S. this spring
More than 5,200 restaurants closed in the U.S. this spring, dropping the total number in operation by 1 percent, according to market research by The NPD Group. The firm’s census showed that independent restaurant closings contributed to most of the decline, while chain units remained relatively stable.
The number of fast food restaurants declined 1 percent, by about 2,500 units. The number of full service restaurants also fell 1 percent, by 2,683 units. That data came from a survey conducted from April 2009 to the end of March 2010.
Another great piece by The UK Telegraph’s Ambrose Evans-Pritchard. Hyper-inflation is a nasty beast and may be lurking in our future.-Lou
The Death of Paper Money
As they prepare for holiday reading in Tuscany, City bankers are buying up rare copies of an obscure book on the mechanics of Weimar inflation published in 1974
Federal Reserve chairman Ben Bernanke, himself a scholar of the Great Depression, has indicated he would consider extra stimulus for the economy.
by Ambrose Evans-Pritchard
