Inflation Could Spell End of U.S. Financial System

FORT LEE, N.J., Sept. 25 /PRNewswire/ -- The National Inflation Association today released the following statement to its http://inflation.us/ members:


"It's unbelievable how Federal Reserve Chairman Ben Bernanke said that the U.S. recession is "very likely over", but once again this week the Federal Reserve has left interest rates at a record low of 0%. If the economy was truly rebounding, wouldn't you think now is the time for Bernanke to raise interest rates to 1% or possibly even 2%? He refuses to do so because he knows without the free money that is flooding the system, our financial markets would once again collapse to new nominal lows. While that would be the politically unpopular move, at least it would ensure the survival of our country. By giving in to political pressure and keeping interest rates at 0%, soon the flood of dollars will break the dam and collapse the U.S. financial system.


We as Americans must stand up now and express out outrage about the Federal Reserve's destruction of our nation. While we are huge supporters of the tea party movement, we must work to focus the movement on exposing the Federal Reserve. The reason why half of the nation still supports Obama is because no matter how many trillions of dollars get spent on health care reform, Obama has promised not to raise taxes for the poor and middle class. These Americans don't understand that inflation is a tax and they will get taxed to death by inflation.


Most of today's youth in America learned at an early age from their parents that back in the 1950's, it cost $0.50 for a movie ticket, $0.16 for a box of Corn Flakes, and $0.05 for a candy bar. A kid's first reaction after learning this normally is, "Wow, I wish I was alive back then when everything was so cheap! I would be able to go to the movie theater every day and eat candy all day long!" Kids were taught that prices have gone up and to be jealous of their parents. They were never taught that prices have gone up only because of the dollar going down. Instead of being taught to envy their parents for being so lucky to buy things cheap, they should've been taught to be furious at the Federal Reserve for stealing their parent's wealth through inflation.


It took 25 years for our national debt to double from $257 billion in 1950 to over $533 billion in 1975. Most recently, our national debt has more than doubled from $5.8 trillion in 2001 to its current level of $11.8 trillion in just eight years. Our national debt is now growing three times faster that it did decades ago, which means we should expect a very minimum of three times faster inflation. Therefore, if it took 60 years for a movie ticket price to rise from $0.50 to $7.50, it will most certainly rise to at least $112.50 within the next 20 years.


The U.S. government is now estimating its budget deficit over the next ten years to be $9 trillion. We all know they are trying to downplay the potential deficit and be as optimistic as possible. It wouldn't surprise us if the budget deficit reaches $9 trillion over just the next three years because as the dollar loses its purchasing power, government workers and soldiers will all demand higher wages as they did in Zimbabwe. This will lead to more money printing and further precipitate a downward spiral in the dollar.


We are at the point where our national debt simply cannot be paid back and once inflation spirals out of control in the form of rising prices, interest rates will likely rise to over 20% once again. Most of our national debt today is made up of short-term t-bills and when we reach a point where the Federal Reserve must print trillions of dollars per year just to make interest payments on our national debt, that is when the financial system will truly collapse and only those with physical gold and silver will be able to survive. The current standard of living and way of life in America is unsustainable and coming to an end. Those who thought we could continue on with increasing our budget deficits and national debt forever without ever paying for it, will feel very foolish soon."


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The National Inflation Association is an organization that is dedicated to preparing Americans for hyperinflation. The NIA offers free membership at http://www.inflation.us/ and provides its members with articles about the economy and inflation, news stories, important charts not shown by the mainstream media; YouTube videos featuring Jim Rogers, Marc Faber, Ron Paul, Peter Schiff, and others; and profiles of gold, silver, and agriculture companies that we believe could prosper in an inflationary environment.