the H word

I have refused to comment on the possibility of "the H word" (hyperinflation) because it had been relegated to WND, Newsmax, and other "fringe" (that doesn't mean I don't read them) rightwing websites. But as I scanned Drudge this evening I saw an article about it on Bloomberg News (a private AP basically). That's a little scary, and when someone says "Zimbabwe" level inflation your ears really perk up. Remember how I said that the old term used on Confederate dollars (they aren't worth the paper they're printed on) in one of my previous posts? Well, looks like that may be prophetic when it comes to describing the future of the US dollar. A part of the BN article:

May 27 (Bloomberg) -- The U.S. economy will enter “hyperinflation” approaching the levels in Zimbabwe because the Federal Reserve will be reluctant to raise interest rates, investor Marc Faber said.

Prices may increase at rates “close to” Zimbabwe’s gains, Faber said in an interview with Bloomberg Television in Hong Kong. Zimbabwe’s inflation rate reached 231 million percent in July, the last annual rate published by the statistics office.

“I am 100 percent sure that the U.S. will go into hyperinflation,” Faber said. “The problem with government debt growing so much is that when the time will come and the Fed should increase interest rates, they will be very reluctant to do so and so inflation will start to accelerate.”

Federal Reserve Bank of Philadelphia President Charles Plosser said on May 21 inflation may rise to 2.5 percent in 2011. That exceeds the central bank officials’ long-run preferred range of 1.7 percent to 2 percent and contrasts with the concerns of some officials and economists that the economic slump may provoke a broad decline in prices.

Well this Marc Faber guy seems smei-legit so I think I'll be investing all my earnings from my summer job into something stable like gold or silver... or lead.