March 2011 – Hyper Inflation???

Published March 5, 2011 by Dr. David M. Berman in Articles 2011

By Dr. David M. Berman

For many years I have been warning through preaching, speaking engagements, and writing of the impending inflation problem. The government’s appetite for spending and power grabbing is unending. As I wrote in my book “Wake Up And Smell The Truth,” the only way for government to grab more power is for it to be inefficient since it can’t grab power by performance.  Government looks to create a need and then insert itself in the “solution” only to end up making the problems its creates worse. It then reasons that the only way to solve the problem it created is for the government to do more to “fix” it. Insane you say? Yes indeed it is insanity, and yet, perhaps not as insane as you may think since it is a calculated possess designed to increase the size and power of government.  It always looks to expand its power and to protect itself. That’s what centralized power has always done and always will do!

What happens when the government gets so out of control, so totally over burdensome, and so over committed that it simply cannot pay its bills? It either defaults or devalues currency. It monetizes its debt in order to pay it’s obligations and continue to operate. The U.S.A. will never default on its debt. What it will do is clear. It has been devaluing the Dollar, and will continue to monetize its debt thereby creating a situation that can only lead to inflation. The way this works is this; at first money is printed and artificially infused into the economy. It may seem to stabilize the immediate situation however that is short lived. This is because of the nasty little thing called “inflation.” When money loses its value at a rapid pace it basically destroys wealth. What good would a million dollars be if it became so devalued that it could only buy a loaf of bread? You laugh?..Well we have an example in the 20th century of what hyper inflation does. This example needs to be often looked at. Apparently, our government has failed to learn anything from history.

Let’s look at the classic historical example of Germany. The Germans lost WWI and not only were defeated militarily (two million German soldiers killed), they were also defeated morally, and financially. The treaty of Versailles was signed at the end of WWI. This treaty contained some very painful things for Germany. The territories of Northern Schleswig, Hultschin, West Prussia, Posen, Upper Silesia (coal reserves), Eupen – Malmedy, and Alsace-Lorrian were all taken from Germany. These were industrial areas, and that hurt the post war German economy severely. The German army was reduced to only 100,000 men, allowed only six capital naval ships, and no submarines. Germany was forced to admit guilt in what is known as the “War Guilt Clause” of the treaty and was made to pay reparations to other countries. Germany had no choice. It was either sign the treaty or be taken over by the allies.

Germany signed the treaty of Versailles and after that a series of situations caused great economic hardship. By 1922 the Germans were experiencing hyper inflation after the German government printed more and more money and infused it into the economy. There was a post war recession in many countries and Germany’s answer was to increase the amount of money in the economic system…First it seemed to help but this led to disaster (sound familiar?). The psyche of the nation was severely shaken. This led to a weakening of the government, great bitterness, and the rise of the Nazi Party.

What we see happening is exactly as I have warned. Commodities prices are rising at an alarming rate. People are dumping their faith in the Dollar. Food staples like rice have doubled in price in the last couple years, and cotton has done the same, oil is high, and the world is convulsing economically and politically. All this happens while a large part of the population is oblivious to what is coming. With all this, the public unions scream for more power, money, and benefits. Any mention of cutting spending in both the federal, and state governments is met with scorn by the liberals who’s goal is to turn this country into a socialist state that bows to liberal political correct orthodoxy.

Here are the simple facts:

  • Prices on commodities are surging.

  • The buying power of the Dollar is falling.

  • Due to massive artificial infusion of capitol into the American economy this will only get worse.

4)   At current debt levels there is no possible way for the government to meet its entitlement obligations even if it taxed the top 20% of earners at a 100% rate.

We are about to have the highest corporate taxes in the world.

6)   Government is full of waste. A report was just released by the Government accounting office showing over 200 billion is waste just from redundant agency overlapping. Billions wasted daily in dim witted programs, and pet projects.  

Yet with all the documented waste the left still calls for more money to the government, and more power to the government over the people. This will continue to lead to inflation and most likely hyper inflation. Inflation kills wealth and savings, leaving those who have been responsible in saving their money punished as it is eaten up by government fiscal irresponsibility. 

Mark my words people. There will be civil unrest, massive increases in prices. More jobs disappearing, and continued convulsions in our society. We have lost our way and have given our liberties to a bunch of back stabbing self interest enemies of liberty in exchange for their never ending lies and promises of security. America can’t ultimately blame the leaders. America must blame the people in it that thumb their nose at the founding principles, or are too lazy to become informed about our Constitution. It is the bulk of the American people who have given away their Constitution, one increment at a time. It is the American people who have voted based on slick ads, and their own short term thinking. Yell, cry out, whine, do whatever it is that will make you who have desired government control feel better about yourselves, but you liberals, you uninformed, you who have trusted government and rejected the wisdom of our founders have no one to blame but your miserable selves! 

Do I sound harsh? Am I not being  “loving?” Well I simply do not care about coddling people who continue to cry out for the same government nonsense and at the same time expect a different result. We go back to our founding principles or we die and become just another example of what happens when people worship government as provider rather than God. Prepare for your family because when it all comes down, the government will not take care of you. They will continue to do what they always do best; take care of themselves, and protect their power.

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