America
headed towards hyperinflation: Financial analyst
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.
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.
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