Methods of combating the U.S. with the global financial crisis could lead to hyperinflation in the country, some analysts believe. Some do not exclude that the increase in prices in the world's largest economy will be similar to galloping rise in prices in Zimbabwe, where inflation is estimated at millions of percent
Talk of a possible hyperinflation in the United States does not expire for several years now, and every time the advent of the "miracle" economies of patients to some experts, all seems more real. Analysts and again frightening future world problems.
The U.S. economy may be faced with hyperinflation, the rate will be close to the level of Zimbabwe, because the Federal Reserve is unlikely to rush into raising interest rates, reports Bloomberg referring to the views of the famous investor and analyst Marc Faber.
Prices in the United States can grow almost at the same speed as in Zimbabwe, said M. Faber. Annual inflation in Zimbabwe reached 231 million percent in July last year, after which the Government has not published more recent data, so as not to frighten the public.
"I am 100% sure that the United States zahlestnet hyperinflation. The problem of such a large debt, as the United States, is that the time will come when the Federal Reserve will need to raise interest rates, but they will do so very reluctantly, and inflation will accelerate" - the experts.
Federal Reserve pour current cash flow crisis, and the government continually intervenes in the economic process. Marc Faber this very unhappy and has repeatedly spoken out negatively about this. Back in February, he broke out in an interview with TV channel CNBC tough criticism of the authorities and compared their attempts to settle the crisis with money from the actions of the Zimbabwean leader Robert Mugabe. "If you look at the debts of the Government of the United States and debts in general, I think that the only way for them to avoid default is inflation", - said the analyst. And two years earlier he had dedicated to this issue a report, which is titled "America is becoming a banana republic?"
But then, experts hoped that the Zimbabwean scenario will not stupidly copied the United States. Theoretically, it is not excluded that emerging trends could be reversed. But, judging by his new speech, it did not happen.
But the official U.S. financial authorities are far from such fantasies. All of what they are capable of, it forecast growth of prices at the level of 2,5% in the next 2-3 years. Thus, the president of the Federal Reserve Bank of Philadelphia Charles Plosser said last week that inflation in the United States could reach 2.5% per annum to 2011, earlier by the American Central Bank forecast growth of prices at that time ranged from 1.7% to 2%.
"There are fears the risks associated with inflation, because of the injections of liquidity into the banking system, but now the threat is not imminent, given the unused production capacity in the United States", - considers the head unit of economic forecasts Action Economics in Singapore, David Cohen. Action Economics predicts decline in prices in the United States at 0.4% in 2009, inflation at 1.8% next year and 2% - in 2011
But even if Marc Faber fantasies become reality, whether or not to weep for America, which might try to imagine the benefits of inflation? The country will protect themselves against default (U.S. debt estimated at more than $ 11 trillion, which in principle is comparable to the annual GDP). Rather, the big problems may arise in other national economies that are "rewarding" America save itself, is pleased to bring yet another crisis, which severely devalued dollar devalue multiply stockpiled on the "black day" American assets.
IFX.RU
Talk of a possible hyperinflation in the United States does not expire for several years now, and every time the advent of the "miracle" economies of patients to some experts, all seems more real. Analysts and again frightening future world problems.
The U.S. economy may be faced with hyperinflation, the rate will be close to the level of Zimbabwe, because the Federal Reserve is unlikely to rush into raising interest rates, reports Bloomberg referring to the views of the famous investor and analyst Marc Faber.
Prices in the United States can grow almost at the same speed as in Zimbabwe, said M. Faber. Annual inflation in Zimbabwe reached 231 million percent in July last year, after which the Government has not published more recent data, so as not to frighten the public.
"I am 100% sure that the United States zahlestnet hyperinflation. The problem of such a large debt, as the United States, is that the time will come when the Federal Reserve will need to raise interest rates, but they will do so very reluctantly, and inflation will accelerate" - the experts.
Federal Reserve pour current cash flow crisis, and the government continually intervenes in the economic process. Marc Faber this very unhappy and has repeatedly spoken out negatively about this. Back in February, he broke out in an interview with TV channel CNBC tough criticism of the authorities and compared their attempts to settle the crisis with money from the actions of the Zimbabwean leader Robert Mugabe. "If you look at the debts of the Government of the United States and debts in general, I think that the only way for them to avoid default is inflation", - said the analyst. And two years earlier he had dedicated to this issue a report, which is titled "America is becoming a banana republic?"
But then, experts hoped that the Zimbabwean scenario will not stupidly copied the United States. Theoretically, it is not excluded that emerging trends could be reversed. But, judging by his new speech, it did not happen.
But the official U.S. financial authorities are far from such fantasies. All of what they are capable of, it forecast growth of prices at the level of 2,5% in the next 2-3 years. Thus, the president of the Federal Reserve Bank of Philadelphia Charles Plosser said last week that inflation in the United States could reach 2.5% per annum to 2011, earlier by the American Central Bank forecast growth of prices at that time ranged from 1.7% to 2%.
"There are fears the risks associated with inflation, because of the injections of liquidity into the banking system, but now the threat is not imminent, given the unused production capacity in the United States", - considers the head unit of economic forecasts Action Economics in Singapore, David Cohen. Action Economics predicts decline in prices in the United States at 0.4% in 2009, inflation at 1.8% next year and 2% - in 2011
But even if Marc Faber fantasies become reality, whether or not to weep for America, which might try to imagine the benefits of inflation? The country will protect themselves against default (U.S. debt estimated at more than $ 11 trillion, which in principle is comparable to the annual GDP). Rather, the big problems may arise in other national economies that are "rewarding" America save itself, is pleased to bring yet another crisis, which severely devalued dollar devalue multiply stockpiled on the "black day" American assets.
IFX.RU
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