The inevitability of global currency devaluation catalyzed by a period of US$ hyperinflation has been building for many years and now we can see the final trigger coming into view. By Executive Order the US Government has authorized that the heads of various agencies in the US Government can now themselves get loans directly from the Federal Reserve. The US Government has put into law the Executive Order of National Defense Resources Preparedness which is their way of guaranteeing the uninterrupted Government consumption of goods and services even during a 'temporary' increase in prices. As prices rise and those goods and services flow towards the highest bidder (the US Government), people will initially wait for prices to come down again . . . and wait a bit more . . . until the trigger realization that the US Government has guaranteed continued rising prices by always outbidding everyone else with extra dollars directly from the Federal Reserve. President Obama's Executive Order, March 2012. "To ensure the supply . . . from high cost sources . . . in light of a temporary increase in transportation cost . . . the head of each agency . . . is delegated the authority . . . to make subsidy payments . . each guaranteeing agency is designated and authorized to . . . contract with any Federal Reserve Bank to assist the agency in serving as fiscal agent." http://www.whitehouse.gov/the-press...order-national-defense-resources-preparedness Thanks to fofoa for revealing how the above Executive Order ties directly into the hyperinflation story. "I'm talking about a near-term dollar super-hyperinflation that will make your hair curl and make Weimar and Zimbabwe seem like child's play in the rearview mirror. If you're new to this blog, you should know that the rate of hyperinflation does not follow the printing. An apple does not end up costing a trillion dollars because they printed enough dollars to price all apples that way. Hyperinflation comes from the margin, from the government defending its own needs, and there's never enough "money" for us mere mortals to pay the prices which are running away from everyone during hyperinflation. " http://fofoa.blogspot.com.au/2012/04/peak-exorbitant-privilege.html "Also, hyperinflation turns physical (as in physical cash) very quickly once it takes hold. So if you're expecting some sort of electronic currency hyperinflation, fuggedaboutit. If you think we're more technologically advanced than bass-ackward Zimbabwe or ancient Weimar, you are not understanding what really happens during currency hyperinflation. It cannot play out electronically all the way to the bitter end because, when prices are rising that fast, physical cash always brings a premium over electronic deposit transfers which require some amount of time (and thereby devaluation) to clear."
