The Bright Side of Hyperinflation By Tom Franklin
(2010-04-17 at 03:58:49 )

The Bright Side of Hyperinflation by Tom Franklin

Despite encouraging words from politicians and the establishment medias
talking heads, it is clear to me, and I believe most Americans who do not
Live in a Regime Ivory Tower, that we are not coming out of the recession.

In fact, things appear to be getting worse as unemployment continues to
rise and businesses cut salaries or shut down. The fears that this
recession could turn into another Great Depression are very real, as we
have lost so much of our capacity to create wealth and the Federal
Government seems determined to use up any remaining capital fighting
endless wars, funding endless entitlement programs, and spending
trillions of dollars on non-wealth-creating -Stimulus- programs while
handing out even more trillions to their bankster buddies and corporate
cronies.

However, another 1930s-style depression is not what keeps me up at
night with worry.

America could survive another Great Depression if it was like the last
one. Sure, it would be extremely painful, but it would be manageable, as
it was before, and eventually we would come out of it, despite the fact
that the government would most certainly make all the wrong moves along
the way. However, what Really Terrifies Me Is A Hyperinflationary
Depression.

According to John Williams at ShadowStats.com, in an article titled
Hyperinflation Special Report, hyperinflation is not only possible, but
inevitable due to the overspending of the Federal Government, and the
printing press of the Federal Reserve, which as Congressman Ron Paul
continuously reminds us, prints money out of thin air. Williams report
is a truly terrifying read that insists that the coming hyperinflation
could get so bad that we will have to resort to the barter system as the
dollar will become nothing more than very rough toilet paper. He cautions
that Electronic Banking will cease to work and for a time no one will
have any money at all, not even inflated currency. You can certainly
imagine the type of Hell on Earth this will create for the American
People.

There is one bright side, however. Since Williams foresees the beginnings
of this hyperinflationary nightmare starting this year, the pain from it
might be felt in time for the 2012 elections. Since the crash of 2008 and
the recession of 2009–10, I cannot leave the house wearing a
Ron Paul 2008 shirt without someone coming up to me and saying that -We
sure would have been better off if everyone had listened to him,- or -I
sure wish I had voted for him,- etc. The current recession has validated
Dr. Pauls warnings, and thus given him credibility in the eyes of the
American people that he lacked when he campaigned for the 2008 election.
This sent his book End the Fed to top of the bestseller list. If
hyperinflation does occur, the pain that the American people feel will
hopefully be enough to awaken them fully to the Follies of the
Establishment Politicians and their Spend, Spend, Spend! mentality.

Williams predicts this, though he does not mention any candidate by name.
What he does say is that -a wide variety of possibilities would follow
or coincide politically with a hyperinflationary great depression, but
The Political Status Quo Likely Would Not Continue.

Times would be financially painful enough to encourage the development of
a third party that could move the Republicans or Democrats to third-party
status in the 2012 presidential and congressional elections.

If Williams is correct, then a Hyperinflationary Depression could cause
the people to elect candidates that would make the necessary corrections,
instead of the same old establishment candidates that got us into this
mess to begin with.

Of course those corrections would be slow in coming, as the previous
administrations going back to at least Woodrow Wilson, have done so much
damage that undoing it all will be slow and painful. There is also the
risk that a third party could move in the other direction, to an even
more authoritarian system so that the United States Government Became
Openly Socialist Or Fascist.

A Hyperinflationary Depression will be very painful to Americans, but may
present those of us who love sound money, free markets, and liberty with
an opportunity to get sensible politicians into office. However, we must
use the time we have now to continue reminding the people that it is
Government Spending and Interference along with Central Banking and
Economic Planning That Led Us To The Crisis To Begin With.

Otherwise the Crisis may be used by Authoritarians to Seek even More
Power and Control over the Economy and Our Lives.

After all, Great Crises often bring Revolutionary Change, but that
Change Is Not Always For The Better.

April 8, 2010

Tom Franklin lives in Pennsylvania with his wife and children.
He blogs at TheEconomicSurvivor.com.

Copyright © 2010 by LewRockwell.com. Permission to reprint in whole or
in part is gladly granted, provided full credit is given.