Raging inflationary fire will collapse economy and dollar, says top analyst
Paul Joseph Watson
Tuesday, October 14, 2008
Investment analyst Puru Saxena told a CNBC audience this morning that the Wall Street bailout was akin to treating a drug addict with shots of heroin, and warned that flooding the financial system with overprinted currency would lead to poverty, raging inflation and eventually a total collapse of the U.S. economy and the dollar.
“It’s very good to prop up the asset markets … but many, many other countries have tried to print themselves out of trouble and the end result has been a total collapse of the economy as well as the currency,” Saxena warned.
“What this is going to cause is sky-high commodity prices in the next few years and a general deterioration of the standard of living and sharply rising consumer prices and a huge contraction in the purchasing power of money,” he added.
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Saxena noted that commodities such as grain inventories and metal stockpiles were at their lowest levels for decades, adding that panic buying of gold across Europe is indicative of fears of hyperinflation.
“Already we are seeing shortages of physical gold bullion and hoarding of gold going on all over the world,” Saxena said.
Saxena labeled bailout measures as “poison” in the long term, adding that tradable rallies will mask the problem until the second quarter of next year but the meltdown will ensue soon after.
Saxena’s warning echoes similar sentiments expressed in recent days by people like Jim Rogers, who last week accused global central banks of unleashing an inflationary holocaust.
This article was posted: Tuesday, October 14, 2008 at 4:46 am