See post from my friend. It already happen. The amount of copper needed to make a penny, cost more than...... well, a penny.
It was a very cold winter in 1928 and this German lady was putting the "Mark" (German Money) to the stove to burn it in order to keep warm. She did that because the "Mark" depreciated too much and it was cheaper to use "Money" as a fuel comparing with Wood.
The inflation was a disaster at that time. The highest denomination was "100,000,000,000,000" Mark. yes, It is not a typos. It is "100,000,000,000,000".
Now, at least 6 central banks are printing money.
1. Bank of England announced to print 170b pounds before Nov.
2. Swiss National Bank printed extra 82% M2 swiss franc in Sept 2011.
3. Euro Central Bank have to print a least 1T Euro, inject to EFSF for the bailout of Euro banks.
4. Monetary of Singapore is doing open market purchase in order to make the sing dollar depreciate.
5. Brazil central bank cuts the rate in order to increase the M2 supply.
6. Indian central bank announces that they will not apply any monetary tighten policy anymore and likely to do QE instead.
7. Federal vice president and one of the fellow announced that another round of QE is necessary for maintaining the economy growth.
8. Bank of Japan is printing 13000b because of the radiation disaster in March.
9. People bank of China is making the monetary policy not that tight because of the "Wen Chow" credit crises.
I worry that we are going to have a serious inflation... I think everyone should find someway to against it ASAP.
ETFs: Inflation Index (TIP), SPDR Gold Trust ETF (GLD),
The inflation was a disaster at that time. The highest denomination was "100,000,000,000,000" Mark. yes, It is not a typos. It is "100,000,000,000,000".
Now, at least 6 central banks are printing money.
1. Bank of England announced to print 170b pounds before Nov.
2. Swiss National Bank printed extra 82% M2 swiss franc in Sept 2011.
3. Euro Central Bank have to print a least 1T Euro, inject to EFSF for the bailout of Euro banks.
4. Monetary of Singapore is doing open market purchase in order to make the sing dollar depreciate.
5. Brazil central bank cuts the rate in order to increase the M2 supply.
6. Indian central bank announces that they will not apply any monetary tighten policy anymore and likely to do QE instead.
7. Federal vice president and one of the fellow announced that another round of QE is necessary for maintaining the economy growth.
8. Bank of Japan is printing 13000b because of the radiation disaster in March.
9. People bank of China is making the monetary policy not that tight because of the "Wen Chow" credit crises.
I worry that we are going to have a serious inflation... I think everyone should find someway to against it ASAP.
ETFs: Inflation Index (TIP), SPDR Gold Trust ETF (GLD),
