The National Inflation Association is an organization that is dedicated to preparing Americans for hyperinflation and helping Americans not only survive, but prosper in the upcoming hyperinflationary crisis.
The United States now has over $76 trillion in total debt obligations. Our budget deficit in February of 2011 alone was a record $222.5 billion, more than the entire year of 2007. Although our 2010 cash budget deficit was $1.3 trillion, once you factor in changes in our unfunded liabilities for Social Security, Medicare, and Medicaid, our real budget deficit for the year actually surpassed $5 trillion.
NIA believes that not only will it be impossible for the U.S. to ever pay off its national debt, but it will be impossible for the U.S. to ever balance its budget again. Even by the White House's own projections, the U.S. budget deficit in 2011 will be 43% of total government expenditures. This level of deficit as a percentage of total expenditures is about equal to what most countries have experienced right before reaching an outbreak of hyperinflation.
Up until now, the U.S. has been lucky enough to export most of its inflation to the rest of the world. This was mainly due to the U.S. dollar's status as the world's reserve currency and the world's willingness to hold onto large amounts of U.S. dollar reserves as a safe haven. This is all about to change. The Federal Reserve is now effectively monetizing our debt by buying 70% of U.S. treasuries, up from previously only buying 10%. Foreign central banks are now only buying 30% of U.S. treasuries, compared to previously buying 50%.
With the earthquake, tsunami, and nuclear crisis in Japan, the U.S. will likely see its second largest buyer of U.S. treasuries become a net seller. In fact, with the U.S. government antagonizing China by calling them currency manipulators, we might soon lose our largest buyer of U.S. treasuries as well. Pimco, which was previously the largest private sector buyer of U.S. treasuries, just dumped all of their government bond holdings in its Total Return Fund.
Pretty soon, NIA believes the Federal Reserve will be the only buyer of U.S. treasuries and there will be a rush out of the U.S. dollar. In our opinion, the U.S. dollar is likely to lose nearly all of its purchasing power over the next few years. The U.S. government will soon go bust as a result of hyperinflation and millions of Americans who have become dependent on government entitlement programs like unemployment, food stamps, and Social Security, just to survive, will likely starve to death.
Our goal is to help as many Americans as possible become aware of the disaster we are rapidly approaching. In our opinion, the wealth of most Americans could get wiped out during the next decade, but it will be an opportunity for a small percentage of Americans to become wealthy by investing into companies that historically have prospered in an inflationary environment, such as Gold and Silver miners and Agriculture producers.
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It is important to know that we are not investment or financial advisors. Our site and newsletter are meant for informational and educational purposes only and should not be used to make investment decisions.
If you are already an NIA newsletter subscriber and you have any questions about the economy or inflation, please look through our NIAnswers database of previously answered questions and if your question is not there, you may submit it to us on NIAnswers. You can also email us any questions/comments at: editor@inflation.us or reach us by telephone by dialing 1-888-99-NIA US. It is our pleasure to hear from you and respond to your questions.
All we ask in return is for you to please spread the word about NIA to your friends, family members and business associates so that we can help them survive the upcoming hyperinflationary crisis.
NIA has produced several critically acclaimed documentaries about the U.S. economy that have received a total of 12 million views. Please check out our video page to watch NIA's documentaries 'College Conspiracy", 'Meltup', 'End of Liberty', 'The Dollar Bubble', and 'Hyperinflation Nation'. NIA has also produced several other must see video reports including 'The Day the Dollar Died', 'Empty Store Shelves Coming to America', 'Japan: America's Lost Decade' and 'Debt Slave'.
Be sure to read NIA's 2010 U.S. Inflation Report, which was released on June 17th, 2010, as well as NIA's 2011 U.S. Food Price Projection Report, which was released on November 5th, 2010. Our food inflation report was featured on FOX News by Glenn Beck, who called NIA a "very credible" organization. NIA's President recently appeared as a guest on Bloomberg and FOX Business.
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