Ben Bernanke’s Hyperinflation And Economic Collapse

Weimar GermanyBy Greg Hunter’s 

Yesterday, Federal Reserve Chief Ben Bernanke was in front of the Senate Banking Committee trying to hold on to his job.  Some Senators were complimentary on Bernanke’s job.  Republican Senator Judd Gregg from New Hampshire gave the Fed Chairman a warm welcome.  Judd said, “If you hadn’t been there, and hadn’t been willing to take extraordinary action last fall, last winter, and even early spring … it’s very likely we would be experiencing a depression…”   I look at Bernanke’s performance during the financial crisis the same way I would look at a drunken bus driver who crashes and then stumbles around pulling a few children out of the wreckage.  In my eyes, Bernanke is hardly a hero. 

Republican Jim Bunning from Kentucky, on the other hand, couldn’t have given a colder reception if he greeted Bernanke in the North Pole.   Bunning said, in part, “Rather than making management, shareholders, and debt holders feel the consequences of their risk-taking, you bailed them out.  In short, you are the definition of moral hazard.”  Bunning, a former Major League pitcher, hurled another fast ball at Bernanke’s head when he said, “Because you bowed to pressure from the banks and refused to resolve them or force them to clean up their balance sheets and clean out the management, you have created zombie banks that are only enriching their traders and executives.”  Senator Bunning vowed to do everything possible to stop Bernanke’s nomination and to “end the Fed’s failures.”      (Complete video of Senator Bunning’s comments below)

Nice speech, but according to economist John Williams of Shadow Government Statistics, it is too late.  In Williams latest report he writes “The United States Economy and Financial System Face an Eventual Great Collapse.”  Williams told me in an interview this week that because of all the bailouts, stimulus packages, giveaways and short-term debt, the U.S. has to finance nearly $5 trillion in 2010 alone.  That’s about $96 billion in debt auctioned off each and every week!!  Williams said, “Someone has to buy those Treasuries, and if no one does, then the Federal Reserve will become buyers of last resort.”  The Fed buying that much in Treasuries is the same as printing huge amounts of money.   Williams says that “is the tipping point that will start a dollar crisis.”   According to Williams, this will produce a “high risk of an ultimate dollar crisis that will begin unfolding in year ahead.”   

Inflation created by this “dollar crisis” will turn into hyperinflation within 5 years.  Government and Fed actions have caused this problem and Williams sees “no way out,” and “hyperinflation is just a matter of time.” The hyperinflation forecasted by Shadow Government Statistics will look like Weimar Germany in the early 1920’s.  The dollar will rapidly lose value to the point it will take a wheelbarrow full of cash to buy a loaf of bread or a gallon of gas.  Anyone on fixed income or holding dollars will be wiped out according to Williams.

The Gold market seems to be reflecting the fear of inflation and a weakening dollar.  Big central banks are buying Gold.  India bought 200 metric tons of the yellow metal last month.  Other countries, such as China and Russia, are also gold buyers.  Retail investors are, likewise, beginning to flock to gold.  Arthur Blumenthal of Stack’s Rare Coins in New York City has been in the gold and coin business since 1974.  Stack’s opened its doors in 1934 and is the oldest coin dealer in America.   Blumenthal saw the “go-go years” of the late seventies gold market firsthand.  Blumenthal told me, “I have never seen anything like this before!  There are only buyers.”  He says many of his customers are “Wall Street types who are buying physical gold for the first time.”  

Williams says buying gold and silver “long term” will be your best defense against a “great collapse…dollar crisis… and hyperinflation.”  Williams also says you should stock up on food and other necessary supplies because the coming crisis will create shortages in all sorts of things.    

I predict Mr. Bernanke will keep his job at the Federal Reserve.  That might be poetic justice because this Fed Chief should witness his handy work firsthand.  What is coming to America might go down in history as Ben Bernanke’s Hyperinflation and Economic Collapse.



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  1. David Cammish

    Spot on Greg, but let’s not forget Alan Greenspan’s contribution to this debacle.


    • Greg

      Agreed. Thank you for pointing that out. Greenspan is the worst Fed Chairman ever!

  2. Larry

    The Vampire Squid (Goldman Sachs) will get theirs first, convert it into gold or farmland, and THEN we will all try to buy the farm produce with worthless dollars….

    Guns, ammunition, gold, silver (small purchases), a garden, and land you can defend. Those are lasting equities. Everything else is dependent on the dead hand of government. And will disappear.

    • Greg

      Thank you for reading USAWatchdog!

  3. deathbyrevolt

    Yes 92Nick m there will be an armed revolt and revolution. When enough people are sleeping under bridges and starving it will come. You need only look at issues like Global warming which is nothing but a ponzi scheme to create a tax bigger then the income tax. Al Gore for your sake I hope you are in an under ground bunker you are a very obvious target. Buy gold and silver and get rid of your dollars as quickly as you can. Get plenty of guns and ammo. You know the targets and there are many to choose from.

    • Greg

      Dear Deathbyrevolt,
      I hope it does not get that bad but bad it will get! Thank you.

  4. Joe

    Great article! This is very scary indeed. As we see China move farther away from buying our debt & the Fed purchasing our own debt this is a sure sign of hyperinflation. The China ‘dollar trap’ was what many economists figured would keep foreign purchasing of our debt. Though there have been ways out of it. Even such economists like Joseph Stiglitz see the collapse of the dollar inevitable but paints a much rosy picture of it. The failure to recognize this by the American public will leave many broke and retirement impossible. The older boomer generation will find it impossible to be able to finance retirements and will likely find it an utter impossibility to find a job in this market. The fed along with the government have refused to let any correction to take place, a recovery must be based on the liquidation of bad debt which was built up during the cheap credit years. As the wealth gap between poor and rich grows I can’t imagine a pretty future in the near time. Countries without middle classes usually cease to exist as democracies. There is much to be seen from this dollar collapse. It threatens not only our countries sovereign wealth but our countries democracy. It is not beyond comprehension that we are moving (or have already moved) towards an oligarchy. Refusing to debate or discuss this is the failure as an informed democracy.

    Thank you for another great article! Sorry to be so gloom.

    • Greg

      Thank you for the comment.

  5. 92nick m

    America will not collapse not yet anyway but soon within 3 years 1 billion rounds of ammo are being sold every month know i say if the next revolution turns hot America will fall forever.the states will separate
    America will be balkanised there is no stopping it know apart from the military having a coup and rounding up all of congress the senate the president and politicians and holding them up for treason that will be the only way you will keep your republic then after that you need to go to war with your real enemy ENGLAND you didn’t do the job properly 200 years ago there snuck back in through the back door of the federal reserve and took America back through monetary policy

    • Greg

      Buy a box for me. Thank you for your view. I am hoping this great country will hang together!

  6. John Morgan

    Great article Greg. With your background working for the mainstream media why do we have to go to the underground/internet to learn what is going on. For instance, I never see/hear anyone reporting who has an understanding of “classical economics” or even Austrian Economincs ( I would think some investigative reporter (I’m not sure what other types of reporters there are) would learn this material and begin to do tv programs of these untold stories. is doing a pretty good job but no one in mainstream picks it up. Thank you for what you do.


    • Greg

      Mainstream media is just not that good on the economy because they cover it like a sporting event. Thank you for your kind words and comment!

  7. Todd

    I’m sure Greenspan would love nothing more than to have it known as the Bernanke debacle! It’s probably why he took an early hiatus.

    Americans forget stuff after, like, a few days.

    A: “Now, who was W’s Secretary of Defense?”
    B: “Who’s ‘W’?”
    A: “OMG, like, the president after Reagan!”

    • Greg

      Agreed! Thanks for the comment.

  8. Ron

    Given all the negatives, are there any postives happening or what do your sources say need to happen to avoid some of these negatives?

    • Greg

      The positives for the U.S. are many. We have the best growing region and farmers in the world, so we will have food. We are a country of smart people and we are at our very best when things are the very worst. I love America but we are heading for big trouble in the economy. We have gotten in way too deep and there is no way to avoid the economic pain that is coming. We have too much debt and it either needs to be paid or defaulted on. (Printing money is a default.) The readjustment in our debt picture will be tough and painful.


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