Hyperinflation the Bolivia Case

Hyperinflation in Bolivia :
In the 1980s, Bolivia and much of Latin America went through a painful period of hyperinflation that brought the country to the brink of collapse.
Bolivia one of the poorest countries in Latin America and with the history of 189 military coups Bolivia was also one of the most unstable with a galloping hyperinflation that was destroying the economic base , Bolivia was the seventh highest Inflation in the history of man with a rate of 23,500% , prices increased by the hour , inflation averaged one percent every minute....

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Bolivia inflation hyper hyperinflation stagnation stagflation hyperstagnation hyperstagflation jorge quiroga gonzalo goni de sanchez juan cariaga jeffery sachs harvard 1980s 1989 1988 1987 1986 1985 1984 1983 1982 1981 1980 Latin America financial crisis Public Broadcasting Service PBS collapse Ron Paul international banks lending debt

Marc Faber : The outlook for emerging markets is far more optimistic than for developed economies

The outlook for emerging markets is “far more optimistic” than for developed economies, investor Marc Faber said at a conference in Seoul today 30 June 2009 . Faber also recommended investments in commodities and tourism industries.Marc Faber predicted the 1987 stock market crash , he was spot on when he predicted last march that stocks will rally and that industrial metals will out perform gold , and that is exactly what happened , Marc Faber managing director and founder of Marc Faber Ltd is also better known as the editor and publisher of the Gloom Boom and Doom Report

Marc Faber Favors Gold over Cash and No New Lows in the Stock Market

Dr Doom Marc Faber was today on Bloomberg from Seoul Korea , Marc Faber says he Doesn't See New Stock Market Lows and that he Favors Gold , " what it means for equity market is that we probably and most likely seen a major low on march 16 when The S&P hit 666 , here in Asia most markets actually bottomed out in October November last year , let's say for one reason or the other the S&P which then went to 956 and is now at 920 re drops to 800 , I am sure there gonna be another stimulus package and another massive monetary injection and if that does not help then another one will come when the $&P drops towards 700 I do not think we will see new lows and I also believe that the economic recovery will be disappointing with the government sector expanding as the government sector has already expanded in the last ten years it's basically the government that is creating jobs , private sector is hardly creating any jobs , and that stimulus will be very hard to take away , so I believe the fiscal deficit will not come down next year and in 2011 but actually go up " said Marc Faber before adding " you do not want to be in Cash because obviously when you have ZERO interests rate as you have now on bank deposits and treasury bills you won't earn any money on the other hand you may not lose that much , but basically there is a lot of cash on the side line in treasuries and in deposits that eventually can move to one or the other asset class , it may not move into bonds because obviously the bond market over time will also smell some inflationary pressures and the depreciation in the value of the dollar so where does the money flow ? it can flow into some precious metals like Gold Silver Platinum and may be palladium but obviously it will flow into equities....."

Marc Faber predicted the 1987 stock market crash , he was spot on when he predicted last march that stocks will rally and that industrial metals will out perform gold , and that is exactly what happened , Marc Faber managing director and founder of Marc Faber Ltd is also better known as the editor and publisher of the Gloom Boom and Doom Report

Germany's 1923 Hyperinflation could happen in USA 2012 ???

Germany 1923 The Hyperinflation and how in happened :

What is Inflation ? what causes hyperinflation ? what were the effects on the German Citizens ?
A teaching resource to support an explanation of the economic process of inflation; how the Weimar Government reacted and how it contributed to the Year of Crisis 1923 :

Inflation or Deflation?

Inflation or Deflation? No it is Hyperinflation :

INFLATION OR DEFLATION?

By Merle Hazard

As we go through this recession

As farther down we slip

Will our central bank get traction soon, or

Will it lose its grip?

It’s a mini-Great Depression

Our markets went berserk

The Fed is printing trillions now, but

Will their efforts work?

Inflation or deflation?

Tell me, if you can

Will we be Zimbabwe

Or will we be Japan?

Credit markets came undone

And still are in distress

Will the dollars in my mattress

Buy much more next year or less?

It’s a desperate situation

When you’re at the zero bound

If a tree falls in a forest,

Is it making any sound?

New money makes inflation

If folks who have it spend

But if it only sits there,

Then the misery will not end

Inflation or deflation?

The choice is looking grim

I wonder what John Maynard Keynes would say

If we asked him

Inflation or deflation?

Tell me, if you can

Will we be Zimbabwe

Or will we be Japan?

Gold is better than Cash said Marc Faber

in his last interview with moneyshow Dr doom Marc Faber said :
"For sure, gold is better than cash. But the devious thing about inflation, if we define it as money and credit growth, is that it touches different asset prices at different times with different intensity. And so, you can have for one year a huge increase in the price of gold and then the next year you could have a huge increase in the price of real estate and the next you could have an increase in silver or agricultural commodities, and the next year in wages or stock prices. You just don't know exactly which one will do the best. It's a very tricky environment, and it favors large speculators and the people who are close to the government. It shifts wealth from the middle class and workers to rich people, as has happened over the last 25 years."

Marc Faber I'm investing in equities ,The whole world is in Trouble

Marc Faber editor and publisher of the gloom Boom and Doom Report was interviewed today 25 June by MoneyShow : Marc Faber touched a wide range of topics , In particular the hyperinflation or ( inflation if you like ) the future of America the FED federal Reserve , the recession Mr. Bernanke The Interest rates , The monetary policies and fiscal deficits , Investment in Gold and other precious metals as a hedge against Hyperinflation , he then talks about Asia and the Asian banks Thailand and why he has chosen to live there , why he invests in equities finally he talks about the financial crisis in Europe Japan the Obama administration proposed solutions etc...you can read the whole Interview in here

Marc Faber on The Alex Jones Show : Zimbabwe Hyperinflation

Marc Faber on The Alex Jones 23 June 2009
Alex Jones hosts Marc Faber, investment analyst, entrepreneur, and publisher of the renowned Gloom Boom & Doom Report. Faber recently predicted hyperinflation for the U.S. on a scale endured in Zimbabwe and the Weimar Republic. Alex and Marc Faber talk about hyperinflation the dollar the economy crisis , Obama new plan for the FED and much more ...TAGS are :
alex jones bob chapman glenn beck ignatius piazza marc faber gerald celente jim rogers max keiser geithner swine flu obama bernanke paulson bush economy shultz kissinger rockefeller cnn fox news msnbc cnbc kudlow federal reserve chrystler gm citigroup new world order conspiracy dollar gold silver depression recession inflation hyperinflation

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Inflation Hyperinflation the Weimar way said Marc Faber

Marc Faber is warning of a Weimar Hyperinflation hitting the USA very soon if the FED keeps on printing paper money out of thin air , the money supply is increasing dramatically and if foreign investors and governments stop using the dollar as the reserve and trade currency , a Weimar Hyperinflation is very realistic the dollar will be worth less than the paper it is printed on , very dangerous scenarios are to be predicted in these cases , it is either a world scale Third World War which seems very plausible or the total disintegration of the United States of America , the Weimar Hyperinflation created WWII in Europe and the rise of totalitarian regimes the same thing could happen in the United States of America ...Marc Faber warns of hyperinflation any time he has the chance to , others like Ron Paul Peter Schiff are pretty much on the same tone ....
"The inflationism of the currency systems of Europe has proceeded to extraordinary lengths. The various belligerent Governments, unable, or too timid or too short-sighted to secure from loans or taxes the resources they required, have printed notes for the balance."

Marc Faber 's Lecture in Slovenia Ljubljana

Dr Doom Marc Faber's Lecture, October 11, 2008 in Ljubljana Slovenija
Marc Faber, who predicted this bear market along with other prominent economists and investors , gives a fantastic, detailed lecture on the economy, monetary policy, gold, and inflation. Needless to say, he is still a bear. These are must watch videos.
Marc Faber goes in details and explains how the FED created one bubble after the other the dot com bubble them the housing bubble the credit bubble ...with ultra low interest rates which leads to strong monetary growth and in particular in the US to strong debt growth

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Marc Faber Hyperinflation Could Hit US in 5 - 10 Years

Marc Faber , also known as Dr Doom editor and publisher of the Gloom, Boom & Doom Report says : Could Hit US In 5-10 Years
"since the introduction of the federal reserve in 1913 The US Dollar have lost 95 percent of its purchasing power , we already had a lot of inflation and although it took 100 years to the dollar to lose 95% of its value the next 95% in value will be very quickly "
"In every society, when you have large fiscal deficits combined with easy monetary policies … the likelihood that you will have high inflation is very, very high," Faber continued. "And it happens very quickly."he told today to CNBC "It’s a lie what they publish," said Faber. "If you underweigh education costs, and if you underweigh health care costs, then you come to a totally different result."
"In such a volatile market, the safest place to invest is in equities or assets." Faber added

"I'm not very bullish about real estate prices in the U.S., but I'd rather be in real estate than in 30-year U.S. bonds.",from now on I am going to nickname dr Marc Faber , Dr Hyperinflation cause he is the only one amongst top range economists who warns the most about Hyperinflation , I hope you agree with me .

Jim Rogers and Marc Faber discuss economics

Marc Faber in Jim Rogers Mansion in New York

Jim Rogers hosts Marc Faber and Daniel Jurgen for dinner and discussion at his home. This video is from 2005. The foresight from these experts is incredibly enriching . Having these two men together, giving their perspectives on very key issues is priceless.In December 2007, Jim Rogers sold his mansion in New York City for about 16 million USD and moved to Singapore. The giant shift of capital to Asia is complete now. The next victim is the dollar.

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BRIC calls for less dependency on US Dollar in Trade

Medvedev calls for use of national currencies in trade . Brazil Russia India and China BRIC Heads seek Financial Security Less dependency on US Dollar .The share of sovereign currencies in mutual trade within the Shanghai Cooperation Organization (SCO) should be increased to reduce dependence on international reserve currencies, President Medvedev has said.

Marc Faber Bernanke is a “Criminal”, a “Mad Man”, a “Destroyer of Wealth”

In an interview early this month on King World News, Dr Doom PhD economist and author Marc Faber called Ben Bernanke a “mad man”, a “destroyer of wealth”, and a “criminal”.

He also called Geithner a “liar”.

Marc Faber on the Debt Deficit and Dollar Decline

Dr Marc Faber said in an article he wrote for the dailyreckoning
” I really think that the U.S. and other Western governments are doing their very best to impoverish their countries."
I wonder what Dr. Friedman would say 30 years later about our current predicament and the role government is assuming in our lives? The individual’s freedom and ability to choose and take risks to create value are, of course, all important life elements and a cornerstone of our country."
The article is entitled : The Frame of Mind of American Economic Policymakers,

Posted in Debt and Deficit, Dollar Decline, Featured, The Daily Reckoning, In 2 parts :
Read the full article : Part I and Part II

The Fed will print more Money Marc Faber says

If things deteriorate, the Fed will print more money. Mr. Bernanke talked a few years ago about dropping dollars from helicopters to stimulate the economy. It would be wrong not to take this statement seriously because that is the thinking among policymakers in the U.S. It is a disastrous policy but it can really make stocks go up -- commodities, too. Since the lows in December, oil is up more than 100%. A lot of liquidity has flowed into commodities, which is a sign investors are concerned about the value of paper money.

Great Investment Opportunities in South Korea Says Marc Faber

Marc Faber, editor & publisher of The Gloom, Boom & Doom Report says "Now is the time to go into the South Korean market as it will not hit new lows" . there are great investment opportunities there ..it is a leveraged economy ...Dr doom said he came to Asia in 1973 and South Korea was one of the first countries he visited and he later invested in South Korea in the late 70s and he made a lot of money there ...Dr Doom added " I have to say it is a country along with Singapore Taiwan Honk Kong that has developed enormously over the past 30 , 40 years . if you look at the Korean stock market in November as was the case for Taiwan they were at 30 years low , in other words , stock market was no higher than 20 years ago ...when you have a country that has achieved huge progress over that period of time , in my view that we have made in some Asian market major lows and that it won't break below these lows it is possible that here and there we can break these lows , it is possible but particularly in Korea and Taiwan we won't break these lows "in other words would you give your money to Bernanke and Geithner or would you give to Asian business men ? ...in order to start investing in Korea , if you do not know the market you better start by buying an ETF or give your money to a manager who knows the region .,...the problem here is Inflation

Marc Faber and The Zimbabwe like Inflation

Marc Faber was the first investor to warn about a Zimbabwe like hyper inflation in America , this was early this month on Bloomberg Television "Prices may increase at rates close to Zimbabwe’s gains," Faber said . by the way according to statistics Zimbabwe’s inflation rate reached 231 million percent last July,

“I am 100 percent sure that the U.S. will go into hyperinflation,” Faber said. “The problem with government debt growing so much is that when the time will come and the Fed should increase interest rates, they will be very reluctant to do so and so inflation will start to accelerate.” Faber added ..this story was reported continuously on main stream media these last 2 weeks , even Peter Schiff talked about it on his Wednesday Wall street unspun podcast

Cyber warfare attack against America by China Russia or India sees Marc Faber

Marc Faber recommends commodities in particular sugar cotton copper gold silver and precious metals
the government debt has is growing at very rapid pace during the last 12 months , it increased by 1.9 trillion dollar next 12 months I expect it to increase by about 2 trillion dollars or so , and then it will be very difficult to bring down the deficit in my opinion " said Marc Faber on June 6 2009 during an interview with radio host King World News ..." Economy is unlikely to recover much from the present level we have fallen off the cliff between September of last year and march of this year and we reached in March kind of low point in economic activity and what can happen from this low point is some kind of recovery for a couple of months or even a couple of years but I think the peak prosperity and the peak growth rate we had in 2006 early 2007 will not come back any time soon , The FED will be in a position in which they will be very reluctant to increase interest rates " Faber added "we have since march weakness in dollar and in bond but strength in stocks and in commodities and now I think for the next ten days the bonds can rebound in other words yields will come down somewhat and the dollar can rebound somewhat , but long term I am extremely negative about US treasury Bonds and the US dollar

The Commodities market Bubble is about to burst

Crude Oil, Natural Gas Gold, Copper speculative bubble is about to explode some experts warn Gold’s long-term rally may be reaching an end
Gold price has increase 9.3 percent this year, heading for a ninth annual gain, caused by the investors fear of an hyperinflation scenario and the search for a better reserve currency alternative to the U.S. Dollar,and , The American FED has have literally flooded the world market with freshly printed US dollar bills , America Japan and Europe cut interest rates and increased liquidity added to the problem. early this month Marc Faber said he was still buying gold and forecast the U.S. economy would enter hyperinflation similar to Zimbabwe . another legendary investor also from Asia Jim Rogers said practically the same ...more gold commodities mining and farming assets and shares

“My personal view is that asset-price deflation and sluggish economic growth will prevail for the next year and a half,” Walker said yesterday. “Under that scenario, gold’s investment value starts to look far less interesting.” said Marc Faber during an early interview with Bloomberg

following is an interview done by bloomberg with Sumitomo's Takai a commodities trader from Tokyo about the Oil, Gold, Copperspeculative bubble 10 june 2009

The dollar would be a weak currency In the long-term Said Marc Faber

Commodities are also about to top out said Marc Faber
Marc Faber was Interviewed this morning by the asian TV CNBC-TV18
he says that commodities are also about to top out , so he does not think that they are an attractive entry point anymore "es, I have had positions. Many resource stocks have more than doubled from the lows. Some have even tripled. I don�t think that it is a very attractive entry point to buy these commodities and commodity-related stocks.

Oil is up almost 100% from the lows. The demand for oil is still rising but not as much as before. There is plenty of flight. So, I just don�t think it is a very good time to buy."
and speaking about India he said that he would rather sell India than buy it " I think that India has of course good growth potential, but there are still lots of uncertainty, both political and economic. As a trader, I would rather sell India than buy it. But as a long-term investor, I would hold here in India."
and speaking about the Asian equities he said : "I have taken some money off the table. In Asia, we have lots of stock markets and lots of stocks that have reasonable valuation. I wouldn�t say very cheap, but reasonable valuation. If you have a long-term time horizon and have cash flow whereby you can buy more shares if they should go down, then I would say hold them. But as a trader, I think as of today I would rather sell than buy." he also mentioned that no paper money and at the top of the list the US dollar is desirable at this point :"In the long-term, the dollar would be a weak currency. But we have a lot of volatility and can go either way. No paper currency is very desirable. That is the problem." speaking about global markets and the high risk at entering equities at this time he said the gravy is out of the market and added :"I would say that the entry point for people who want to buy equities around the world is a high risk entry point because the global economy has bottomed out. There is little potential to grow very strongly. So, there will be disappointments in terms of earnings in the second half of 2009. The gravy is a bit out of markets. India was below 8,000 on the Sensex and has gone up almost 100%. I don�t think it is a very good time to make an entry into the markets except for traders"

Peak oil is real said Marc Faber to Bloomberg

The oil prices will continue to rally despite the depression
is it speculation peak oil or something else that pushes the oil prices to sky rocket again ? some experts predict 80 to 90 dollars a barrel before the end of the year , peak oil is a reality said Marc Faber because the reserves are in decline , but what it is more scary is not the peak oil but the peak demand...Marc Faber was interrogated today among a panel of other experts by Bloomberg about the oil prices continuing to soar despite the economy is still not out of the tunnel , this is not probably a sign that the economy is picking up again it simply reflects the weakness of the dollar and the fact that countries with huge dollar reserves are trying to dump those dollars in the market purchasing commodities and oil in particular before the dollar crashes under the weight of the trillions that have been printed out of thin air lately by the FED ....so it is not the economy that is picking or the peak oil scenario it is simply the fact that countries are trying to get out of the dollar bill

Marc Faber Gold Dollar and The Zimbabwe Inflation continue to raise controversy

Marc Faber News

by Gwen Robinson on Jun 02 13:59.

Back to the inflation/deflation/hyperinflation debate.
Marc Faber raised a lot of fuss last week with his bold warning on Bloomberg TV that US hyperinflation will approach Zimbabwe’s levels. His warning - as Credit Writedown’s Edward Harrison noted - raised the question: Is this headline-seeking exaggeration or serious punditry?
We suspect a bit of both. Faber struck a chord with his evocation of the “Z word”, setting off frenzied debate.
This week, things look different, as unexpectedly strong US output data and other economic figures elsewhere drove equity prices higher as risk appetite improved and the dollar plunged against both the euro and the pound.
And lo and behold, Faber’s latest monthly client newsletter takes a far more - er, sanguine - view of things, relatively speaking. In fact, we’re wondering if it’s the same Marc Faber doom-meister of last week.
It’s not that the uber-bear has become a mega-bull. Indeed, citing a variety of factors including the overbought condition of stocks, “heavy insider selling” and an increase in the supply of equities due to debt to equity conversions, Faber warns that the buying of equities right now “does not seem to be particularly timely”.
It’s rather that Faber is more tempered than he has been in a while. No mention of Zimbabwe at all. Equities could go either way but more likely bottom out. US inflation will be irksome, of course, as a result of the disastrous economic policies of Tim Geithner and Ben Bernanke. But US government bonds have tumbled and the US dollar has been weak. Both are near-term oversold and should shortly rebound, he says.
As for equities, a correction should “unfold” in the short term, he says, but market lows reached either towards the end of last year (in most emerging markets) or in March of this year (in most developed markets) also should hold.
Any such correction, he adds, could take the shape of a sideward movement in the major averages, “or even not occur at all”.
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