Max Keiser - On the Edge

America headed towards hyperinflation: Financial analyst

Press TV,

20 November, 2012

A financial analyst says that the United States is heading towards “a hyperinflationary eruption” as a result of the country’s massive debt, Press TV reports.

“I think that at some point, we’ll have a hyperinflationary eruption; but in the end, it’ll all be a case of deflated assets,” financial analyst Rick Ackerman said.

“…It [Hyperinflation] can really happen just because people one day get the idea that their dollars are worthless and they’ll attempt to exchange them for anything that’s real,” Ackerman added.

The analyst predicted a rise in taxes next year, as well as a decrease in government spending.

According to Ackerman, the dollar is worthless because it represents debt.

“You should look at the dollar, really, as representing a form of debt. It’s no longer money. There’s nothing backing it.”

He added that the strength and weakness of the US dollar depends on perceptions that Washington will be able to pay off its debts or not.

The US has a national debt of more than USD 16 trillion. In 2009, the US debt stood at USD 10.6 trillion.