U.S. Hyperinflation Warning, Part I

Hyperinflation (i.e. the U.S. dollar going to zero) is not a “possibility” for the U.S. economy. Rather, it is an absolute certainty. Indeed, as was clearly demonstrated in a previous commentary, the U.S. dollar is already worthless, based upon three, distinct analyses of the dollar’s fundamentals.
This future destiny of the dollar is also graphically depicted, in one of the Federal Reserve’s own charts:

The mere shape and magnitude of this extreme, exponential function is a classic/obvious representation of a hyperinflation-in-progress. Any exponential function this extreme is a mathematical definition of the phrase “out of control”. Not only can this money-printing never be undone, there is no way to reverse/alter the consequence: hyperinflation.
Even if the U.S. government or Federal Reserve simply “pulls the plug” on their ultra-insane/ultra-extreme money-printing, the deflationary collapse which would be triggered would necessitate a new wave of hyperinflationary money-printing (to “bail out” the U.S. economy), unless the government – and the bankers – were willing to accept all of the following, catastrophic consequences:

1) Complete debt-default of the U.S. economy, and thus the instant vaporization of the U.S. Treasuries market

2) Total collapse of U.S. equities markets

3) Total collapse of the “derivatives market”

4) A domino-like collapse of most/all of the bankers’ other, fraudulent currencies

5) A Soviet Union-style disintegration of the U.S. war-machine

6) The Mother of All Depressions in the U.S., along with all the civil unrest and political upheavel which such an economic catastrophe implies.

Because it is extremely unlikely that either the One Bank or its servants in the U.S. government would ever be willing to (voluntarily) accept the consequences of “pulling the plug” on this Ponzi-scheme economy; it is reasonable to conclude that hyperinflation is the only, possible economic outcome for the United States.

Furthermore, the chain of events listed above would/must still result in the destruction of the dollar, for reasons which will be made clearer later in this analysis. Therefore, since even suffering all of the consequences above would not/could not save the dollar, there is little-to-no incentive to avoid hyperinflation – as a means of at least briefly delaying this cataclysm.
However, in reality (and as has also been previously pointed out); hyperinflation is almost always a “confidence event”, not an economic event. This means that in a typical hyperinflation episode, the fundamental value of the currency falls to zero considerably sooner than its official exchange rate collapses, which is not triggered until the Average Person loses confidence in that particular currency.
Thus because hyperinflation is generally the final result of a Grand Deception (and fraud), our best clues as to when this monetary collapse will occur come from looking at developments which can/will (must?) cause confidence in the dollar to collapse, and so reveal its real value – zero. In this respect; we have recently been provided with a very significant “clue”, from the statistical reporting of the U.S. government itself.
The U.S. Department of Agriculture recently (and very reluctantly) announced that U.S. food-inflation has exploded this year. Just until May; beef/veal prices have already risen by 10%, which works out to an annual inflation rate of 22%. Egg prices increased by 15% in the month of April, alone (an annual inflation rate of 180%). Pork prices have risen even faster – but at least there government can point to disease as the (partial) culprit.
It further warned of (imminent) future price-shocks of a “large and lasting” nature for fruits, vegetables, and dairy products. We know the USDA was very reluctant in releasing this tiny glimmer of the Truth, for several reasons. First of all, this announcement comes from the same government which continues to yammer on and on that inflation is (supposedly) “too low”. Understand the absurdity of this lie.
As a matter of simple logic and simple arithmetic, it is impossible for inflation to ever be “too low”. As with all central banks; the U.S. Federal Reserve has a statutory duty to “preserve the value” of the U.S. dollar. This means exactly the same thing as keeping inflation as low as possible, since this is literally two sides of the same coin.
The Federal Reserve is supposed to keep inflation as close to zero as possible. And should inflation ever go “below zero”, it is no longer “inflation”, at all. It is deflation. Thus inflation can be low, it can be high, or it can be too high. But inflation can never, ever be “too low”.
Our starting-point for analysis is not simply that the U.S. government is lying to us about inflation, but, rather, it is telling huge/absurd lies about inflation – which would not be able to fool any eight-year-old child with a reasonable grasp of arithmetic. Regular readers are aware that there are a multitude of purposes for this Great Inflation Lie, but ultimately, at the top of the list, the biggest reason to lie about inflation is to delay/conceal the inevitable hyperinflation which is on the way.
We can further detect the reluctance of the USDA to reveal this sliver of Truth via the facile “reason” it provides to explain these alarming numbers/warning (and thus mollify the Sheep).  Supposedly this sudden, official spike in inflation – in the Land of Too-Low Inflation – is because of “the drought in California”.
However, this pretend-reason was fully/competently rebutted by another commentator:

…“large and lasting effects” on agricultural production in California will be avoided this year by pumping 5 million acre feet of groundwater from underground lakes, known as aquifers. The aquifers are a relic of the era when the Pacific Ocean covered much of the state. California has over 850 million acre feet of water stored in 450 known groundwater aquifers, enough to cover the state to a depth of 8 feet.

The State of California-sponsored UC Davis/ERA Economics farm report dated May 19^th stated that only about 410,000 acres or 7.5% of California’s Central Valley farmland will be taken out of production this year. Losses for the 80,500 farms and ranches in California due to the drought will be limited to only be about $738 million, or 2% of the state’s $42.6 billion annual agricultural revenue. [emphasis mine]

So the data from the State government for California totally contradicts the propaganda of the USDA. The only way in which a minor supply-disruption of this level could possibly produce the impact on prices previously described would be if these “drought conditions” were a global phenomenon – and thus the shortfall could not be met simply/easily by increasing imports (at little additional cost).
We can therefore state with confidence that this sudden spike in U.S. food-inflation is a direct consequence of the insane/extreme money-printing depicted in the chart above, and the strongest visible sign of the inflation tidal-wave that is coming, to date. Here readers require some additional explanation, in order to be able to put the significance of this inflation data fully into context.
The U.S. Greater Depression continues to relentlessly transform the Middle Class into the Working Poor, for the steadily shrinking number of Americans lucky enough to have any employment at all. For the 50+ million U.S. unemployed, all of their dependents, and nearly everyone on “fixed incomes”, they’re simply poor.
With the U.S. standard of living having fallen by more than 50% over the past 40+ years, this means that the “basket of goods” being purchased by the Average Consumer circa 1970 is dramatically different from the basket of goods being bought by the Average Consumer in the Impoverished States of America, of 2014.
Specifically, today’s (much poorer) consumer spends a much greater percentage of their incomes on food than any generation of Americans since (at least) the Great Depression. As the Working Poor/poor continue to get poorer and poorer; the percentage of their disposable dollars going to food purchases steadily approaches 100%.
For the vast majority of Americans; the “food inflation rate” is the inflation rate.
So, as one branch of the (lying) U.S. government claims that inflation is below 2% (and falling), we have another branch of the same government reporting food-inflation (real inflation) of 20%-or-more (and rising) for much of the average “food basket”. How does any compulsive liar destroy confidence in their lies? By saying totally opposite things – simultaneously – out of either side of his/her mouth.
Skeptics would insist that it is premature to start writing of a “collapse in confidence” of the U.S. dollar (and the hyperinflation that will come with it), even if an inflation-rate of 20+% percent became widely known/accepted among the general population. But even this glimmer of Truth from the USDA is still nothing but tip-of-the-iceberg numbers.
Part II will show readers how the inflation numbers already officially acknowledged by the USDA would have been much worse, if not for a plethora of other lies and mega-crimes on the part of the One Bank which served to significantly depress their magnitude. Additionally; readers will be made aware (again?) of how perilously close this particular, economic Sword of Damocles now hovers above the U.S. economy – and the One Bank’s entire empire of fraud/crime.