Art Cashin continues:

“It (the inflationary spiral) was in fact delayed for a couple of years.  But once it started, it could not be taken back.  So here in the United States and in the European Union, there are very few, if any, signs of inflation because people are so concerned (that they are hoarding money).

Listeners (and readers) will have to keep an eye on the velocity of money.  Watch figures like, here in the United States, the M2 (figure), and see if it begins to grow through velocity, and get very cautious at that point.  There are some potentially eerie parallels (today vs the Weimar Germany era).  The United States trauma was unemployment and deflation (in the 30s), but in Germany in the 20s, it was money that ruined an entire society. 

Inflation came so swiftly that if you had a comfortable pension, in a matter of months you were ruined.  The society changed in more ways than people could imagine.  That’s why I say you have to watch very carefully.  It’s not when they begin to inflate the currency that it takes off instantly.

There is a kind of delayed effect (from all of the money printing), and you want to watch very carefully.  If that starts to accelerate, if you begin to see not just the first signs of inflation, but actual acceleration, it will come very fast.  Then you have to think about, are you protected?  Do you have your money in hard assets? 

Vladimir Lenin said that the best way to take over a country and subjugate the people is to debase the currency.  So whether you do it by accident or purposely, it has a very deleterious (damaging) effect on the population and on the culture.”

Cashin then issued this deeply troubling warning concerning hyperinflation:  “I think you are certainly at a ‘flashing yellow alert.’  You have in place a variety of things that could begin to react somewhat domino-like.  As I said, there are measures and items that the listeners (and readers) can look for themselves.  Look at, what is the growth in the money supply, M2?  It comes out every week.

if it begins to grow rapidly, then the money that the Fed has created will be seen as moving through the system.  That will create the high risk of accelerated inflation, and perhaps, God forbid, runaway inflation.”

This is one of the most powerful interviews Art Cashin has ever given.  The above information was just a small portion of his incredible interview.  KWN readers around the world will not want to miss this audio segment as Cashin covers the incredible dangers facing the financial world today, including hyperinflation.  The King World News interview with Art Cashin is available now and you can listen to it by CLICKING HERE.

© 2012 by King World News®. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.  However, linking directly to the blog page is permitted and encouraged.

The interviews with Bill Fleckenstein, Art Cashin (UBS $612 billion), Jeffrey Saut (R.J. $360 billion), John Embry and Gerald Celente are available now.  Also, be sure to listen to other recent KWN interviews which included, Rick Santelli, Michael Pento, Don Coxe, Pierre Lassonde, Rick Rule, Nigel Farage and Ben Davies by CLICKING HERE.

Eric King

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© 2012 by King World News®. All Rights Reserved. This material may not be published, broadcast,

rewritten, or redistributed.  However, linking directly to the blog page is permitted and encouraged.

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