Is Hyperinflation Coming?

Healthcare Bill to Cause U.S. Hyperinflation By 2015

Well, a few blogs ago, I blogged that I thought the $940 billion being touted for the Health Care Bill would cost over the next decade would be too low. I guess I'm not the only one. Every government program I have ever seen or read about has always exceeded the projected cost.

"Medicare was created in 1966 at a cost of $3 billion per year and the House Ways and Means Committee estimated in 1966 that in 1990 the cost of Medicare would reach $12 billion per year. Instead, the actual cost of Medicare in 1990 was $107 billion (792% more than what was projected) and today Medicare costs $408 billion annually. In 2003, the White House Office of Management and Budget estimated that the Iraq War would have a total cost of $50 to $60 billion. So far, we have already spent $713 billion on the Iraq War (over 1,000% more than what was projected)."

Oh, just a little over run with both of those government managed projects, huh?

"NIA (National Inflation Association) believes the healthcare bill will be the final nail in the coffin of the U.S. economy and will just about guarantee that we will see hyperinflation by the year 2015."

"The U.S. government last week reported a record monthly budget deficit for February 2010 of $220.9 billion. Total tax receipts for the month were only $107.5 billion compared to outlays of $328.4 billion. The total U.S. deficit for the first five months of fiscal year 2010 was $651.6 billion, with tax receipts of $800.5 billion and outlays of $1.45 trillion. The deficit was up 10.5% for the first five months of fiscal year 2010 over the same period in fiscal year 2009."

Wow, $651 billion for the first five months of 2010, with a 10.5% increase in the deficit! Health Care that will cost at least $940 billion over the next decade...can America afford this without hyperinflation.

Now here is something that I have not read before and it is a little scary. I had to read it twice to believe it.

"We are now at a point where if the U.S. government taxed Americans 100% of their income, the tax receipts generated would not be enough to balance the budget. Likewise, if the U.S. government cut 100% of its spending including defense, but kept paying Social Security, Medicare and Medicaid, we would still have a budget deficit. NIA believes it will be impossible for the U.S. to have a balanced budget ever again."

I hope you read that closely. If ALL Americans gave up ALL their income we still cannot balance the federal budget! Think about that, what kind of mess is America in.
I have read people saying that we will be heading into hyperinflation and some that says deflation. I'm not an economist and don't play one on T.V. or radio, but what I'm thinking neither one would be good. Think about it...which of the two would be better in your world. I feel we will be taking one of these two paths, which one is anyones guess. Stay alert and get prepared to survive both scenarios.

Keep your eyes open...