Private investment advisor Martin Hennecke warned this morning that the endless printing of money to bail out collapsing banks would lead to hyperinflation and the Zimbabwe-style destruction of the dollar, euro and sterling.
Asked by CNBC how the three currencies could be destroyed, Hennecke, senior manager of private clients at Tyche, highlighted the collapse of Icelands banks.
They have a lot of external debt in other currencies so they wouldnt be able to print up more of their own currency – meaning hyperinflation to get out of their debt – but the UK, the U.S. and the rest of Europe could do it.this is the first step down the road to hyperinflation, said Hennecke.
Noting that there was a gold rush and panic buying taking place while gold dealers worldwide had to close their doors, Hennecke agreed that gold prices would explode as hyperinflation crept up, and said that relatively modest overall price rises in the precious metal were partly a result of deleveraging as well as, manipulation as the central bankers and the politicians dont want you to panic out of their debt and go into gold.
Hennecke dismissed the new rescue plans announced over the weekend as merely new taxpayer funded money being printed up and thrown at the problem, which will lead to accelerated inflation.
Asked if he believed whether the Euro and the U.S. dollar could go the way of the Zimbabwean dollar, which has suffered annual inflation of over 200 million per cent over the last few years, Hennecke responded, Actually its interesting to know that the worlds leading standard rating agency Standard and Poor has predicted that all the major western governments are heading towards default on their sovereign bonds – that was predicted way before the crisis even started and now with tax revenues drying up and much much more money needed for these bailouts and privatizations of the banks to prevent a bank run, clearly that is likely to be happening earlier (rather) than later.
Most investors are saying cash is the safest thing but it might just turn around with cash being one of the highest risk investments if this inflation accelerates, Hennecke concluded.
Early last month, before the collapse of Lehman Brothers and the announcement of the $700 billion bailout package, Hennecke warned that the U.S. and Europe were both heading for depression and that the U.S. would eventually be forced to announce national bankruptcy.
Author: afteramerica
Keywords: Commentary Documentary News Euro Dollar Collapse Stock Market
Added: October 14, 2008
PLEASE READ THIS BEFORE WATCHING: MagicMovieMoments urges all YouTubers to watch in High Quality mode. You don’t wanna miss the action! Click the high quality link above Views for a better experience.
Video contains footage of Microsoft and Sony. Features news coverage about the Playstation 2 and Xbox console wars. Microsoft challenges Sony! Excellent documentary. Enjoy 
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Author: MagicMovieMoments
Keywords: CNBC Entertainment News Sony Playstation PS2 Microsoft Xbox Halo Console Wars Bill Gates Kaz Hirai
Added: October 13, 2008
Well, well, well. The DOW saw it’s biggest point gain in history. At the rate the market was selling off, this bounce was already baked in, but from the looks of it, this appears to be only a bear market rally and will most likely not be sustained. Volume was lower (yes, it was Columbus day) and we need volume to surge in order to call it a bottom.
Author: BigWaveTrading
Keywords: stocks canslim cnbc market dow nasdaq sp charting
Added: October 13, 2008
Smita CNBC Awaaz October 13
Author: vivekkharbanda
Keywords: Smita CNBC Awaaz
Added: October 13, 2008
Larry Kudlow of CNBC
Author: jaisonangeveettil
Keywords: Jaison James Angeveettil Larry Kudlow Free Market
Added: October 13, 2008
Author: panchatatvainfo
Keywords: PANCHATATVA - CNBC SMART SHOPPING
Added: October 13, 2008
