The Case For Hyperinflation: Echoes From The Weimar Republic, Zimbabwe & Latin America
20th century hyperinflations i.e Germany, Various Latin American and the most recent example in Zimbabwe, all shared one important characteristic: Debt To GDP averaged 52%. In 2010 The Ratio will be 45%! We are bankrupt people!.... We have managed to hang on due the irrational confidence in our paper money, but that is barely hanging on by a thread. Even in GDP rebounds immediately to mid single digits, it is impossible to make a dent in the national debt.
1) Unfunded Healthcare Costs In 2010: 956 Billion
2) Interest on debt held by the public and foreign nations 450-500 Billion in 2010 These alone add up to 1.5 trillion of unfunded liabilities in 2010. But Guess What? Unfunded healthcare liabilities will increase to nearly 2 trillion a year by 2018! Interest on oustanding Debt as we all know won't stay supressed, thus conservatively speaking we would have a 1 trillion interest payment every year just to service the outstanding debt.
The above does not take into account the rampant increase of the money supply of the last year and a half, Credit inflation via loans losses, bailouts, stimulus,etc. You get the point.... We are bankrupt 5 ways from friday..... We can't print out way out of this situation.