Investment Banker: It’s Going To Get Nasty – Buy Land, Barbed Wire And Guns

A top investment banker has warned that the economic fallout of the sovereign debt crisis could get so nasty over the next five years that people would be wise to abandon the markets and instead buy land, barbed wire and guns.

With gold smashing through its all time record high this morning on the back of fears over a double dip recession, analysts are turning increasingly bearish on the markets. Anthony Fry, senior managing director at Evercore Partners, told CNBC that the bond markets could turn nasty over the next few months and said that the current problems created by the European debt crisis could be with us for at least five years.'

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U.S. Food Prices ‘Spiraling Out of Control’

U.S. food prices jumped by 2.4% in March 2010 in the largest monthly leap in more than 26 years, and the sixth consecutive monthly increase.

The National Inflation Association (NIA) issued an alert to its members April 22 warning that the sharp upswing in U.S. food inflation will soon lead to a situation as severe as that currently plaguing India.'

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A Quick Tour of Hyperinflation and the Possible Consequences for America

"How bad was Germany's inflation?" I asked.

"The German mark started losing value so fast that people were getting paid two and three times a day and they'd leave work each time so they could spend it before it lost even more value. They'd buy anything: Food, hard goods, knickknacks, who cared? If you didn't spend it right away, it was going to be worth a lot less in just a few hours. It got so bad that people not only spent their money as fast as they could, they often didn't bother taking their change."

"You're kidding," I said.

"You know how stores today have those little penny trays on the counter near the cash registers? ‘Take one; leave one?' You buy something for a dollar ninety-nine and give the clerk a two dollars. He gives you one penny change and you drop it in the tray because a penny is close to worthless, nowadays. Suppose in a hyperinflationary period the price of a loaf of bread goes up to $19,900, something not at all inconceivable, and you've given the clerk two $10,000 bills. He gives you back a hundred dollar bill. That hundred dollar bill now has the purchasing power the penny used to have. It's easy to leave it on the counter and leave, especially because in a few hours it'll be worth even less".'

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Hyperinflation: The Shocking Video Obama Doesn't Want You to See.

We're Screwed!

Do you believe everything the government tells you? Economist and statistician John Williams sure doesn't. Williams, who has consulted for individuals and Fortune 500 companies, now uncovers the truth behind the U.S. government's economic numbers on his Web site at ShadowStats.com. Williams says, over the last several decades, the feds have been infusing their data with optimistic biases to make the economy seem far rosier than it really is. His site reruns the numbers using the original methodology. What he found was not good.'

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Potential For the Fed to Hyperinflate

The following information may be the most important we have ever published. One of our Intel sources, highly placed in banking circles, tells us that on 1/1/10 all banks that have received TARP funds have been informed by the Federal Reserve that they must further restrict any commercial lending. Loans have to be 75% collateralized, 50% of which has to be in cash, which is a compensating balance.

The Fed has to do one of two things: They either have to pull $1.5 trillion out of the system by June, which would collapse the economy, or face hyperinflation. This is why the Fed has instructed banks to inform them when and how much of the TARP funds they can return. At best they can expect $300 to $400 billion plus the $200 billion the Fed already has in hand.'

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The Big Collapse Could be Very Near

The Fed can of course print money to buy up every Treasury bond in existence, but the inflationary ramifications would be Zimbabwe like, and crush the dollar on international currency markets. Are we near the phase where all hell breaks loose? I have never even answered, maybe, to this question before. It's always been, "no." Now it's maybe.

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Could the Weimar Hyperinflation Happen Again in America?

The $12.9 billion in bailout funds funneled through AIG to pay Goldman Sachs for its highly speculative credit default swaps is just one egregious example. To the extent that the money generated by “quantitative easing” is being sucked into the black hole of paying off these speculative derivative bets, we could indeed be on the Weimar road and there is real cause for alarm. We have been led to believe that we must prop up a zombie Wall Street banking behemoth because without it we would have no credit system, but that is not true. There is another viable alternative, and it may prove to be our only viable alternative.

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Federal Reserve Sets Stage For Weimar-style Hyperinflation

The Federal Reserve has bluntly refused a request by a major US financial news service to disclose the recipients of more than $2 trillion of emergency loans from US taxpayers and to reveal the assets the central bank is accepting as collateral. Their lawyers resorted to the bizarre argument that they did so to protect 'trade secrets.' Is the secret that the US financial system is de facto bankrupt? The latest Fed move is further indication of the degree of panic and lack of clear strategy within the highest ranks of the US financial institutions. Unprecedented Federal Reserve expansion of the Monetary Base in recent weeks sets the stage for a future Weimar-style hyperinflation perhaps before 2010.

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Hyperinflation Forces Zimbabwe to Print $200 Million Notes

Cash-strapped Zimbabwe revealed plans Saturday to circulate $200 million notes, just days after introducing a $100 million bill, Finance Minister Samuel Mumbengegwi said.

After the $100 million note began circulating on Thursday, the price of a loaf of bread soared from 2 million to 35 million Zimbabwean dollars.

Amid allegations of illegal foreign currency trading, the government also fired top executives at four major banks Thursday, according to The Herald, a state-owned newspaper.

Many anxious residents of the nation's capital, Harare, have been sleeping outside banks, waiting for them to open so they can make withdrawals before the institutions run out of cash.

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Bernake's Money Printing Helicopters Are Here

'Newly printed dollars are being used to replace the capital losses of America's corporations. If it were possible to replace wealth simply by printing money, humanity would have eliminated poverty shortly after discovering the printing press. Instead, it always results in the same fate - destruction of the currency through the process of hyperinflation. The following chart using data from the Federal Reserve of St. Louis visually reveals just how extreme the latest measures from the US Federal Reserve have impacted the monetary base.'

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Mugabe Regime Arrests Soldiers Amid Fears Of Pay Revolt

Restrictions on the amount of cash that can be withdrawn from the country's banks amid an economic crisis and hyperinflation mean that soldiers, like the rest of the population, can only take out the equivalent of 50 pence a day - enough to buy a single banana.
Fourteen soldiers were arrested this week after scores went on the rampage in the capital Harare and the middle class suburb of Braeside, attacking foreign currency dealers with batons.

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Not long now. When they start locking up the army it's only a matter of time!

Global Crisis? This Is The Real Crisis!

Going out to dinner in Zimbabwe

If you think that the current economic crisis is something that has never happened in history before, you may be wrong! After the collapse of the agriculture sector in Zimbabwe in 2000, the inflation in that country skyrocketed to 231 million percent a year!

Just think about it - 231 000 000%! Unemployment went up to 80% and a third of country’s population left it.
Let`s now have a look at the photos that you may not be able to see anywhere else in the world.

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