Economist warns dollar purchasing power nosediving to nearly zero as U.S. enters HYPERINFLATION ERA

09/24/2024 / By Belle Carter

Zang Enterprises founder and CEO Lynette Zang recently warned that the United States is about to enter an era of hyperinflation. She noted that market volatility is inevitable, and that the public will start losing confidence in the U.S. dollar.

“I believe with all my heart and everything that I know that we’ve already begun the transition to hyperinflation,” Zang told Michelle Makori, lead anchor and editor-in-chief of Kitco News. “We’re going to see more borrowing, more money printing, more inflation because they have not killed that beast that they created and continue to create. It’ll become very obvious in 2025.”

According to Zang, the economy seems to be holding up well. But she believes this will be until the Nov. 5 U.S. elections. Thereafter, she projected that the macroenvironment would deteriorate quickly. “What they have in mind for us takes us back to feudal times,” she said.

During the interview, which has around 140,000 views on YouTube as of press time, Zang cited Federal Reserve Economic Data charts showing the purchasing power of the consumer dollar in the U.S. city average. She pointed out that even the Federal Reserve indicated that the greenback’s value can approach zero. (Related: Citi says apocalyptic hyperinflation is coming, Germany’s central bank agrees.)

“If you look on that left-hand index, what’s down at the bottom, a big fat zero. And we’re not very far from that,” she said. “It’s critical that there is a zero on that index. So, they know that the currency is going to zero and what happens when we get there.”

According to Business Insider, purchasing power is a measure of how many goods or services you can buy with a unit of currency. The currency might be a commodity, such as gold or silver, or a government-issued currency, such as the dollar.

“Imagine that you make the same salary as you did twenty years ago,” said Robert Johnson, who serves as both a professor of finance at Creighton University‘s Heider College of Business and CEO and chairman of the Economic Index Associates. “You would be able to buy considerably fewer goods because the prices of those goods [denominated in dollars] have generally risen.”

Factors that greatly affect purchasing power are inflation, income, interest rates and government and manufacturers’ policies.

Purchasing power matters because it affects the standard of living. It also impacts savings, influences and investment decisions. It also can play an important role in national and local policymaking.

Zang: U.S. banking sector is sick

In the interview, Zang also broke down the latest developments regarding the health of the U.S. banking sector. She said that at the moment, it is “extraordinarily sick.”

S&P Global reported that the consolidation within the U.S. banking sector has accelerated this year, with 54 U.S. bank deals already announced in the first two quarters of this year, This is actually on pace to surpass last year’s 99 deal announcements.

A lot of bank branches have also been closing down. Nearly 2,500 bank branches closed last year, while more than 400 branches shut down so far this year.

Experts agree that this was because U.S. regulators cut the expected impact on the largest banks by about half and exempted smaller lenders as they made significant changes to their proposed bank capital rules.

Fed Vice Chair for Supervision Michael Barr has already previewed these revisions, stating that new requirements will reduce the capital hike for the eight biggest U.S. banks, including Citigroup, Bank of America and JPMorgan Chase, from 19 percent down to nine percent.

Zang firmly stood by her belief that the U.S. is to face a huge crisis in 2025, especially now that the public is starting to lose confidence in the U.S. dollar.

“Every single bank is underwater, [and] 2025 is going to be a much more visual year with a tremendous amount of market volatility,” Zang said.

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Watch the video below where economists talk about hyperinflation in the United States and the rest of the world.

This video is from the GoneDark channel on Brighteon.com.