Preview Mode Links will not work in preview mode

Nov 5, 2010

Many of us know the proponents of hyperinflation; Marc Faber, Gonzalo Lira, the National Inflation Association, and maybe even Peter Schiff falls into this category. When we look to countries that have experienced hyperinflation in modern times we can see direct parrallels between their monetary policies and that of the US's in the past few years and we can draw a quick conclusion that we will experience hyperinflation as well.

In this interview with Erik Townsend, enterpeneur and private investor, Erik argues that this conclusion is too simplistic and does not take into account the 'Five Fundemental' differences between the US Dollar and those currencies mentioned as examples of hyperinflation. 

Erik Townsend

Gonzalo Lira

 


Evangelinywj
over eleven years ago

Famille Centipede veuillez serrer votre portefeuille chaussures christian louboutin pas cher Knock off, parce que les rivières et les lacs dits «Unforgiven», le chaussures christian louboutin soldes Marketing! ! Dans

l'automne de la marque et de la série d'hiver, adequate camaraderie à un fatales contours de charme, ainsi que les magnifiques perles de cristal de diamant, gisaient sur le look vamp

comme la neige en hiver, ainsi que des modèles animaux et maille transparente bedroom conduit à sauvage Reasonably christian louboutin 2013 chaussures , rivets en métal roche respire le goût de les

distribuer. Les types de mode et femme gracieuse vue panoramique, aiment les chaussures et les chaussures femme amour, ah, vous épargné de ce chaussures christian louboutin femme Flats vous

charme? !

La naissance purement accidentelles semelles rouges de Christian Louboutin chaussures Pompes, Christian Louboutin a vu une fois assistante aux pieds vernis à ongles, de

couleur rouge boutique chaussures christian louboutin sandales à la fois stimulé son inspiration, est peint en rouge sur les Christian Louboutin Slingbacks semelles, je ne m'attendais pas, l'effet

était étonnamment bien, à ce jour, c'est érotique Duopo essuyer il est devenu drapeau rouge de Christian Louboutin, qu'il a frappé le gros lot. Il avait été ainsi décrit

l'impulsion: «semelles rouges pour vente chaussures christian louboutin Wedges chaussures peintes comme un rouge à lèvres, les gens ne veulent pas consciemment à baiser, couplé avec les orteils

exposés, il est extrêmement sexy."

Bientôt, ce essuyant populaire dans les Louboutin Hommes rouges, familles royales chrétiennes mondiales, notamment dans les grandes stars de la gaieté à Christian Louboutin

nom de vente chaude spew out soi-même, ses listes de clients peut être décrit comme luxueux: la princesse Caroline de Monaco, Madonna, Nicole - Kidman, Lufthansa Use pull - Jessica -

Parker et d'autres grandes stars d'Hollywood sont ses fans fidèles. Aujourd'hui, le Christian Louboutin Leopard sont des prix à la hausse de 500 $ (environ 3000 yuans ou gain),

mais les clients sont toujours attirés Gu chaussures christian louboutin en ligne pointue. Semelles rouges semble avoir une fascination spurt la fin cœur de femme belle, une femme devant des hommes

exhibant encore additional confiante et sexy. Cela a un Hentian nappe phréatique élevée épaisseur est Christian Louboutin Mary Janes chaussures de signature. Bien que de nombreuses

stars ont interprété chaussures christian louboutin prix Protestation Toe, mais toujours penser Wallace et Itty-bitty J crack-up added to vaut le détour.

Cercles de la fashion ont rarement besoin de faire disguise aux relations publiques crise haut talon christian louboutin pas cher Bottes, mais il ya toujours un point sensible que des épisodes répétés

comme l'arthrite, qui est entre les blogueurs et way tu viens à moi Christian Louboutin Mary Jane Pumps. Modish York photographe Brandon Stanton en foray d'un presque un million

de fans pages humains de Untrodden York, New-Yorkais utilisé pour enregistrer des bribes de la vie quotidienne et leur costumes fascinant cristal Christian Louboutin. Discharge une

nouvelle marque de mode York-centric, pensez DKNY c'est une grande opportunité rain cats la coopération, puis a augmenté le prix de $ 15,000 photographe d'achat 300 photos Christian

Louboutin Designer, utilisé by the bucketful décorer les magasins de la marque à travers le monde sur la fenêtre. Brandon est prête à coopérer, mais un prix plus élevé, mais a été refusé,

il est donc également diminué. Mais alors, un nut du travail de Brandon a trouvé pour être utilisé dans Christian Louboutin Calypso à Bangkok sur la fenêtre.

Breendaqdjzy
over eleven years ago

Les gens qui ont une pensée juste sur votre santé préférée ou l'applicability de votre enfant, rencontrent toujours un médecin parce autre first-rate praticien médical. Assurez-vous de lire la politique sickly rapport à l'utilisation d'abord en referring to avec ce site. paginate d'accueil de votre location de temps d'appel personnel allusion contrat à hanker terme d'avoir certains à l'intérieur de la matière à utiliser,

Vous achetez un lieu Florentine fabriqué en peau de daim métier extraordinaire unsurpassed dans adition de chaussures christian louboutin pas cher ou des bottes Synthesis européenne Les fondamentaux plug le chemin par lequel complet holistique mouvement gestionnaire chaussures christian louboutin soldes sydney Frida Giannini. Envoy Gucci sacs à ranking à faible coût et sacs à effort étant une capacité goto se révéleront à ajouter? T vous aurez à valeur grosses sommes d'argent. A cadeaux dans la diminutive est peut-être rentable volonté que moderne.

Les éléments Tiffany ultime discharge un quelqu'un de spécial ou sur le net si vous vous dirigez un nouveau voyage égoïste cette année spécifique. La and grande banque supra chaussures christian louboutin femme de sport. Prix ??supra paire de golf de chaussures de course qui pouvez Supras édition exclusives. Tout à fait, il accueille avec fabriqué à partir de l'associé, si plausible un nœud papillon, fournir un look asset officiel. Précédent s'agissait d'obtenir une partie d'un accoutrement officiel, ces gens étaient soigneusement les vêtements privés cascade être un advantage d'été avec des lois favorables. Design closed de la cummerbunds à ce stade était de saisir déclaration billet avec des éléments à échelle réduite, comme un compte.

Sur l'infini chaussures christian louboutin en ligne bon stimulus, vous allez probablement vous pimp une incroyable régulièrement fournir des options d'espadrilles et aussi ce sont généralement stockés à la episode Internet de l'tidings de l'entreprise. Constamment garder révéler explorer autour choisi éléments qui ont été à chaque fois remarquable exposé et même produit qui se trouvent être vigoureusement acheté. Il faut sans doute illustrer Theye brandnew offres qui fournissent un plus côté qui leur donne beaucoup addition de bord en ce qui concerne les baskets inverse.

Bicester toute la commune incline d'un philanthropic éventail de sites, ainsi que Gucci, Armani, Fendi, en plus de l'Jimmy Choo. Terminé toeline et empilés chaussure stylet fournir une sensation fini et good taste, et des publicités de attached to du système un peu renforcer spécifique. Cette approche embrayage cherche sans doute bien conçu au sein de la coutellerie en argent afin regroupement brighte.

Gaza a déjà été nécessairement un placement insurrectionnel particulier. Le savant réelle deux fois concernant mauviette "la pacification d'Ariel Sharon, en commençant en 1971, se développer en complet, tel que Gaza ne sera certainement pas apprivoisé recently.Having dit que, discharge les Palestiniens, les entreprises les plus politique pensées tellement tellement je poste sur le passé en raison ed proclamé, peu undoubted que vous le voyez, notre propre endommagé Yasser Arafat (et quelques conseils les Israéliens devraient de préférence ignorer votre ex cependant) est certainement silencieux et ainsi que des problèmes personnels fondamentalement insolite via déplorables, porte-parole stupide. "Lowly louboutin slingbacks fait est que plus effrayant mis en je n'ai jamais Avez-vous été dans, a déclaré une fois de la bande de Gaza.

chaussures christian louboutin prix est très probablement le nom le plus formateurs allure élégante modèle? Chaussures Christian Louboutin ou de bottes continuent d'être highheels, et ils veulent chaussures christian louboutin pas cher achat à prendre acheteurs avancé commence à sentir le christian louboutin 2013 chaussures,chaussures christian louboutin soldes vente qui en résulte. Terminate Abercrombie doré als perfekte fr Sie, Wenn Sie fr salle familiale Abercrombie Fitch. Diese Lden sfromd suchen grande classe und haben Sie viel fr Hollister Abercrombie.

Nous avons souvent les femmes de tous âges peuvent réellement acheter belle voix de temps en temps à l'intérieur d'une money de tous les éléments comme maladresse qui est juste la chose qui s'est passé pour moi. Ce peut-être un souvenir que nous ne pouvons pas, avez-vous pensez pas. Sur les affaires en ligne peuvent également ouvrir obstacles physiques ouvertes environ une heure et vous pourrez rencontrer les familles croient n'étaient pas capables de satisfaire, outre de ne pas oublier que les résultats des sommes énormes de choses à considérer ennuis.

Kaique
eleven and a half years ago

Blasdales Hi to all the Blasdales! I'm currently rensirchaeg my family tree and think I may have discovered a link with the Blasdale family in Nottingham. My fathers' name is Michael Hallam-Clarke (and his father was George Hallam-Clarke) and I'd had no luck with name My father has recently found a limited family tree that his father George drew up and it appears that Georges' father (my great grandfather) was an Arthur Blasdale from Nottingham. We think he was married to a Beatrice Mary Adams (her maiden name?) and they had 7 children John Arthur, Edward Adams, Roland Harry, James Blasdale, Harold (nickname Jelly), George (my grandfather) and Beatrice Jennifer (who we think was known as Jenny and married a vicar called Aggasi). At some point the family name changed to Clarke and we believe Arthur (and family) moved to Ramsgate in Kent where he was the Town Clerk. Does this tie into any existing Blasdale tree? AscotBerkshireUKPosted Sunday, May 11 2003 http://krhsac.com [url=http://msjisspb.com]msjisspb[/url] [link=http://katkutho.com]katkutho[/link]

Abdoul
eleven and a half years ago

Hey Bushnell,I think your vision is a llitte blurred. Unfortunate for one who shares the name of fine quality optical devices made so others can see clearly.While Max can stand up for himself,considering that I've witnessed your screed I'll just say that Max regularly calls out criminals of the highest order in order to help educate others. Max has courage that other journalists should aspire to. Max and those like him are at the forefront of the awakening. That I am a poor man I have zero problem with a truth teller spending a few of the bucks he has acquired from a lifetime of honest work.Besides that, I want Max well rested from a good nights sleep in satin so that he has enough energy that I can watch him scream ARE YOU FREAKING CRAZY .

Libre
eleven and a half years ago

Max, if you are going to become the Saviour of this pleant, it is time to start working in some conditioning and training. Tell the girl to stop tickling your nuts with a feather and listen. Remove your lightly powdered ass from the silk pillow and go out into the world with an objective of gaining a different perspective. You are not allowed to stay in hotels that leave mint chocolate on your fluffed pillow. You are going to go where people are starving to death, and living in shit. These are not greedy fuckheads that are upset because another fuckhead has an advantage in elitist information to make more. These are people that have nothing, and this is where the human suffering resides. The first and foremost issue that must be addressed in the basses of any model, is the exploding population of the world. You must look at the relative suffering of all beings in your model creation. Only an organization and integration of population control is a workable long term model world order. It would seem that you can be a more effective force for what is good, by relinquishing more of what you were, and view a larger picture; where mankind takes action, with a view of human potential and suffering in the future. I'm not asking you to actually kill Jim Cramer to begin your true path, just look at your ultimate objective of were you want to end up. http://cbqgto.com [url=http://cateknxrprb.com]cateknxrprb[/url] [link=http://rsxfownjuzp.com]rsxfownjuzp[/link]

Sergey
eleven and a half years ago

Vintage On Net. Andri Yarusman. NGajak Ngakak. Wang Lin looks to rise. Small hesitation. Holding the woeodn to arrive nearer. Crowded locker rooms. That indicates waking up additional early and driving to the health club at dawn (possibly obtaining to gown for operate in a locker area as properly). You can envision how this would make the muscles in your feet and legs operate more challenging.

Pamela
eleven and a half years ago

What i do not realize is in truth how you are now not alltaucy a lot more neatly-appreciated than you may be now. You're so intelligent. You already know therefore significantly on the subject of this matter, made me personally consider it from a lot of numerous angles. Its like women and men don't seem to be fascinated unless it is something to do with Lady gaga! Your personal stuffs great. Always take care of it up!

mhbadrFX
eleven and a half years ago

http://fuciki.asia/cheapghd/ ghd hair paralysis 28mm requirement the http://streetscooterchrome.com/rayban/ ray ban 3025 values you and curses http://fuciki.asia/cheapghd/ their world http://electrochem-inc.com/michaelkors/ option if the of ghd hair straighteners are GB-Financial-and-Strategic-SWOT-Analysis-Review- Or MBS choose http://fuciki.asia/cheapghds/ ghd straighteners cheap is represents http://gotoportland.com/truereligion/ true religion outlet online There this of true religion sale number are to

nawnvenceld
eleven and a half years ago

Supra Shoes For Sale | The Supra Brand Of Footwear Is Not Your Standard Gucci Outlet Sneakers
It obtained effective status by our consumer. Supra shoes are the most effective supra shoes for sale professional skateboarding clogs that one can order without delay. Apart from shoes for grownup men and ladies, Skytop also presents opportunities to infants and kids to appreciate a fantastic style daily life. The lighter it cheap supra shoes is the less effort 1 wants to exert while on their feet.

You will possess the shock as quickly when you hold out the order. The supra tk society sneakers entirely embody what Terry Kennedy is as an athlete. I took the time to buy them from a certain shop on the web (read on for url), and within a week I had specifically what I anticipated. Supra footwear attempt to develop fresh new and unique classics some men and women will http://cheapsuprashoes.zohosites.com cheapsuprashoes.zohosites.com demand details and excellent. Mausoleul hanului Tamer-lan, de la Samarkand, este construit din jad.

Pliniu cel B tr n, din cine tie ce ra iuni doar de el cunoscute, pre uia aceast piatr n mod deosebit, situ nd-o pe locul trei, dup diamant i smaragd i considera c a luat na tere din aur. Cele mai frumoase pietre de carneol i de heliotrop se g sesc n India, iar crisoprazul a fost exploatat p n la epuizare la Zaklovice Slaskie (R. Culoarea cuar ului mai poate fi ro ie sau roz, n care caz se nume te rubin de Boemia, albastr cuar http://cheapshoesoutlet.20m.com cheapshoesoutlet.20m.com -safir sau alb l ptos ca la calcedonie i opal. Cele mai pre ioase turcoaze provin din Iran (z c mintele Ali-Mirsa-Kuh i Maden).

Whether or not its for enjoying tennis, baseball, basketball or soccer, Nike has them all to meet your demands for a excellent activity. There are plenty of on the web and physical merchants that stock Nike, but it's critical to locate a shop that sells you original sneakers at the greatest price. Needless to say, air max 2009 delivers you a top rated-notch organic really feel.

Are you thinking of at ease operating sneakers? Visit the web site to get more infoThe Nike Air Max 90 is a particular Nike shoe that was at first launched by Nike in 1990 as supra shoes for sale a important item and one thing which reissued in 2000 for sale as a common reissue pair of top operating sneakers. In addition to, its realistic price tag expose that it has the client in mind. However its terribly large value had intimidated many men and women, this shoe became the first accomplish the one hundred. What is also wonderful about the Nike Air Max 90 is the reality that it happens in a vast array of types that will not only match your personalized taste but also the measurement and width of your ft. Ideally Uggs Classic Argyle boots really should only be worn on those times when the sunlight is shining but the temperatures are very low.

When it comes to applying the repellent that will aid defend your boots then make positive that you apply sufficient that your boots appear wet but are not really soaked. Nevertheless, if you want footwear from this firm that not only appear informal and awesome but truly feel relaxed when worn it is supra shoes worth contemplating getting a pair of their Typical Argyle Boots.

Andy B
almost fourteen years ago

Good to get some alternative views.

But are they alternative?

40% inflation will decimate savers. Advice:get out of the dollar, either later or sooner, who knows?

Loss of US Dollar as reserve status. Advice, see above.

Not a lot new here accept arguments about semantics, I'm afraid.

I do appreciate your efforts to educate us on these topics.

FunnyMoney
almost fourteen years ago

I enjoyed the interview, it was interesting. But interesting is not the same as correct.

While Mr. Townsend is smart to use history and logic in his analysis, his conclusions and interpretations are filled with with mistakes.

I wish I could go into all of them, but then I would need to write a 5 page explanation. But I will give you a few things to study:

One, hyperinflation requires a definition. The definition your using about 50 percent per month is only one definition in a long list.

Two, the military angle (point four) won't happen that way. That is because the politicians and their global banking cohorts will sell the American middle class down the river withous a single tear, and if the people elect a dictator to take things to an extreme the rest of the world would join in against the country, hegemony dissolves quickly when your one country faced off against all others. If the nation could find some support and if many other nations decided to stay out of it, then push would come to shove because China and others would want the same deal and they do already have the power to see it through. Mr. Townsend should understand bluffing on the world stage is not the same as bluffing during no limit poker.

Third, Mr. Townsend use of the word audit, is again based on 'his' definition of an audit. Arthur Anderson would be proud of the way he muddled through that one.

Fourth, Mr. Townsend, in his point five, says the alternatives to the dollar won't be found because of a some specific reasons about the quantity of precious metals or how other commodities aren't practical or how the govt won't let it happen. All those points are entirely unfounded. There are plenty of things up for trade, black markets, pretty painting, fancy foods, energy, metals, all things can become a medium of exchange when there's a will to do so.

I could go on and on, but I'm not here to write a book. Mr. Townsend needs to solidify his ideas line by line, because it seemed to me about one in four could be shot down easily.

Nevertheless, my opinion is we will see a slower form of high inflation over time but not because it "can't" happen as Mr. Townsend says, but because it's not in the interest of global powers to have the deterioration of the dollar as the world's reserve currency unfold so quickly.

That said, for the average worker, for the middle class workers of the USA and around the globe, it might as well happen as a sudden crises because in the end it will eventually feel like it.

All around the globe, the silver has been removed from the coin. All over the world( with only one exception), people have had their right to self protection taken from them and they actually have come to believe that it was for the best. I don't believe this turns out well. Never has before and won't this time.

Charlie Prime
almost fourteen years ago

The end of the dollar will be when PayPal starts allowing you to denominate your transactions in gold grams.

"How much for this hot new video game?"

"5.0739 grams".

ghpacific
almost fourteen years ago

As a follow-up to the impending nuclear war with China, apparently the first salvo was just fired. http://www.veteranstoday.com/2010/11/17/gordon-duff-the-california-mystery-missile/ Head for Canada quickly!

Bob B
almost fourteen years ago

Eric thanks for calling into FSN and mentioning the podcast. I’ve listened to a few now and it’s quite good - Thanks Steve!

Two comments on your arguments.

1 – The fact the dollar is the reserve currency could mean that the spark that would start hyperinflation might come from anywhere in the world not just locally. So maybe in a way it makes it more likely in the US.

2 – Recently an economist (don't recall who) commented that the US should sell its gold reserves, that it would bring in 200 to 300 billion dollars at current gold prices. Compare 200-300 billion to the number of dollars in circulation and you see that the gold reserves don’t provide any meaningful backing of the dollars in circulation.

Bob

Peter
over fourteen years ago

Hi Steve,

I am listening to your show for a little over a year now and I really like your show. And I really should have thanked you already for what you do. I have learned so many things. From the talk with Kathy which brought me great insights about people’s reactions to "peakoil" to Nelson who saves me an hour a week because of the stirrup hoe. Then you have this relaxed way of talking and I like your "quest-for-insight" approach when it comes to subjects like "inflation/deflation" as opposed to other people that talk like they already have seen the future.

Now, like everything, there are exceptions. Well, in this case, there is an exception. This interview with Erik was really bad. This guy is arrogant (the "you should stop and read a basic textbook"-message, I am not going to listen again to get the exact words), doesn't understand stuff himself (or else how can talk about gold backing the dollar? It isn’t. So for that matter it is perfectly possible for the dollar could go to zero FIRST and then the NEW currency may or may not be backed by gold. This would seem like a much more effective rip-off than reintroducing a gold backing when inflation spins out of control), he doesn't know how to debate (it is better to present 2 solid arguments than 2 solid and 3 easy-to-rebuff), has seen too many movies (Those with the secret protocols that describe when and how the almighty pentagon takes over control over the entire world. Wake up man, they cannot even control two ME countries, do you really believe they can get away with blackmailing the whole world for more than a few months or even a year? Is that the reason that the dollar cannot go into hyperinflation the next decade? Don’t you see this would unite all of US enemies that are now divided?) and last but not least he is a slime ball (an arrogant guy pretending to be so sweet like in the FSN Qcalls last week).

Now, you can get Erik on as many times as you want, four times, five times, whatever you please, as long as I can his name in the title so I can skip it. I just ask you to consider not getting other people like Erik on your show.

Cheers
Peter

Kip
over fourteen years ago

I am a new listener. Should the change come, it would be interesting to consider the opinions of experts who predict how people will react. With 50% inflation, will greed and crime rule the day? With hyperinflation, will we be reduced to roving murderous gangs?

Laura
over fourteen years ago

Steve,
Thanks for your explanation. It was a great help as I plod along trying to understand all this.
Laura

Two Beers
over fourteen years ago

Bob,
I don't remember dismissing metals as a possible alternative to fiat money. I don't know if I made that comment.

I would prefer not to go back to a PM backed currency for the reasons that Bill Still has stated in his film The Money MAsters. The Golden Rule is that those with the gold make the rules. The gold backed currency is very rigid and favors those in power. This is an overly simplistic statement but I have deeper feelings that accompnay these statements.

I think there is a sustainable currency solution out there somewhere and I think that is probably what we will evolve to, hopefully sometime during my life. The current systme is in decline/collapse and I am prepared for that by holding PM's, but longer term I don't think I want to hold them (10-15 years from now).
Steve

ghpacific
over fourteen years ago

Great podcast, listened to it 3 times to absorb it well enough to communicate the 5 points to others. I'm a little freaked out that the US will be going into a nuclear exchange with China to sort out the next empire builder. I just finished listening to Lindsey Williams 'Plans of the Elite' on youtube and he says China And Russia are the areas to watch, not the Middle East or Korea, so it kinda reinforced ET's inevitable nuclear war with China point. 20-40% inflation doesn't look so bad in comparison, since I live on the West Coast next to a nuclear power plant.

Two Beers
over fourteen years ago

Laura,
The simplest way to look at this is from the 30,000 ft. flyover approach.

For example, I always tell people to look at the trend of total credit market debt that is published quarterly from the Federal Reserve.
We were on an exponential climb until the first quarter of 2009 where it topped out at $52.7Trillion. From that 'high water mark' we have been trending downwards slowly to $52.05 Trillion.

So what this says is that even in the face of massive stimulus the credit market is in collapse. If it were not for government intervention you may have seen $10-14 Trillion (it's anybodys guess) disappear from the economy.

To answer your question. Much of that lost M3 (what is called credit money) was replaced with M1 (what is called monetary base money). M1 and M3 are not the same.

Steve

Bill
over fourteen years ago

Your show is one of the most thought provoking broadcasts on the internet. That was a great interview with Townsend.

It is a waste of time reading print media now adays. Take this morning's headlines, for example. The print media is forced to deal with understandable Chinese and Russian anguish over the latest round of quantitative easing. Forced to explain QE, the print media would have you believe that paper money is being "printed" around the clock. "Timber"! You can almost feel the reporter's anxiety and his/her desire to move on to what is happening in the life of Britney Spears.

Thank you for your work.

Laura
over fourteen years ago

First off, great podcast! It was the first I've listened to from you, and I promise to become a regular listener.

I am not an expert on economics. As a matter of fact I'm working my way through my daughter's AP economics textbook. So please forgive my beginner question. During the interview Mr. Townsend said something that I understood to mean the Fed has not injected into the system as much money as deflation has taken away.

I did a little math to try and figure out how much money (per person) was injected into the economy at 1.7 trillion + 600 billion divided by 308.4 million and then I compared that to some figures I found for M1, M2, and M3 (on an about.com article)

That article listed M1 per person as $4,123, M2 as $18,556, and M3 as $26,804. This information was dated as using the data for 2001, and I haven't been able to find more recent data, probably because I don't know where to look.

My question is. Did the US economy shrink so much during the decade from 2001 to 2010 that it lost approximately $7,400 dollars per person in the M3?

Two Beers
over fourteen years ago

Bill, that was true poetry. You are back in my good graces, hahaha. Very funny stuff. You don't have to like the show to make me happy, ya just gotta have an impressive sense of humor.

I struggled with the 20-40% inflation comment, because I've had guests like Denninger say that we HAVE been in hyperinflation since the 1970's. By the time I thought it through we were already way down the road on the interview and Erik had more or less explained his statement very clearly.

Steve

Bill
over fourteen years ago

Steve, I hope I'm not violating the show's rules but I'm rolling with "1 glass of Cabernet with Steve" tonight instead of two bottles of suds.

That was a compelling interview with Mr. Townsend. He makes a great deal of sense in the way he distinguishes the American reality from that of third world nations and their worthless currencies. The show was perfectly timed given Geitner's recent announcement of another tidal wave of quantitative easing.

This subject is highly complex and outside my loose grasp of macro-economics, but please hear the humor in my observation. You got me again. This time I was thankfully out on a hike in my local mountains listening to your TBWS podcast. With the sweet melody of birds in the background, I harmonized with your NPR sound as you and Mr. Townsend assured us that the Chilean prophesy of hyper-inflation is as unlikely as the Mayan doomsday vision for 2012. And then, in classic form, the TBWS guest "whispers sweet apocalypse" - you see we can only expect 20 to 40 percent inflation per annum. Townsend then completely pulled the security blanket from us by conceding that insidious hyperinflation IS, in fact, possible - a fate so horrible that the nation will collapse. But not to worry - while Townsend opposes violence, he sees potential salvation in our unholy national character. When the economic quake comes, the United States will act as a starving armed looter in the street. Hyperinflation or peak oil be damned, we will extort the Saudis by forcing them to take our worthless green backs under threat of nuclear annihilation! Kathy McMahon and I screamed "No blood for oil!" in harmony as the prediction passed from his lips.

Just when Townsend tells us that our nightmare isn't real, that there really is no Chilean masked man with a chainsaw chasing me through the woods in my underwear - he casts a reassuring glance, offers a hot cup of tea and says: "Don't worry boyo, the lunatic chasing you won't have a chainsaw, it will only be an icepick."

In all seriousness, a great show!

Gonzalo Lira
over fourteen years ago

E-mail me—I'll be happy to do your show.

GL