Gonzalo Lira: How Hyperinflation Will Happen

Hyperinflation!

Gonzalo Lira: How Hyperinflation Will Happen: "The Global Depression we are in is being exacerbated by the very measures being used to fix it—stimulus is putting pressure on Treasuries, which are being shored up by the Fed. This obviously cannot have a happy ending. Therefore, the smart money prepares for what it believes is going to happen next.�"

Part II is here.


Oh, and another great article from tonight:


"The structural bear market has not reached the end. We have long said that the de-bubbling process would end only when equities became very cheap and revulsion in equities as an asset class hangs in the air like a fog. The problem remains more of excess valuation within the US rather than Europe, but that will not prevent the bear market hurting other cheaper markets as much. We will return to the valuation nadir last seen in 1982 with the S&P bottoming around 450 (see chart below)."

More after the jump...

More sunshine..

"The Congressional Budget Office (CBO) forecasts the U.S. budget deficit will hit $1.3 trillion this year. An astronomical figure, to be sure, but that’s lower than was projected in March. It’s also less than last year’s record $1.41 trillion deficit, which was close to 10% of GDP.

And, that's the good news.

As the deficit grows so does the national debt, which is currently more than $13.3 trillion, according to official figures.

But the situation is actually much, much worse, according to Boston University economics professor Laurence Kotlikoff.

“Forget the official debt,” he tells Aaron in this clip. The “real” deficit - including non-budgetary items like unfunded liabilities of Medicare, Medicaid, Social Security and the defense budget - is actually $202 trillion, the professor and author calculates; or 15 times the “official" numbers.

“Congress has engaged in Enron accounting,” says Kotlikoff, who recently penned an op-ed for Bloomberg entitled: The U.S. Is Bankrupt and We Don't Even Know It."

More here...

Are you ready?

Ambrose nails it in his usual style. This quote should scare the snot out of the "long only" crowd:

"'This has been one of the most interesting days in finance ever,' said Andrew Roberts, head of credit at RBS. 'We are right at the tipping point. Yields are about to collapse even further, equities are about to turn over. The end game approaches, probably in next few weeks.'"

Hard-nosed Fed sends global markets reeling - Telegraph

Awesome

Armageddon!

Well, more opinions on some form of outcome..albeit from yet another gold bug.

Must watch

Saw it via Karl Denninger`s site.  Karl Bass:

Laf

Rosie!

This man is SHARP.  The end game is here..and I still have no idea if the collapse will be in nominal or real terms.  AARRRGGH!

Canadian Pension Issues

Oh please, the economy here is rocking. There is no way these companies won't increase their contributions! And besides, a 50% haircut is nothing for all these baby boomers with 80% of their wealth in real estate (only goes up!) and on average, less than $30K in RRSPs (what, me worry?). 

Workers in big pension plan could soon face cuts in benefits - thestar.com: "“If there is no additional negotiated contributions as of Sept.1, then members of the plan with that employer will go on to a benefit scale that is up to 50 per cent of what they are accruing on a future basis,” Hanley said in an interview."