Despite recent pronouncements from Fed Chairman Ben Bernanke that he was cautiously optimistic about economic recovery, and despite official reports indicating that the labor market is stabilizing, the National Inflation Association (NIA) has continued to warn against the threat of the United States dollar becoming worthless due to accumulating national debt.
In particular, the NIA has criticized the mainstream media’s focus on the debt crisis in Greece—a small economy that the organization calls "irrelevant"—while ignoring a potential catastrophe at home in the form of impending hyperinflation.
It has also attacked the media for putting too much stock in credit rating agencies, which downgraded Greece’s bonds to junk, but still give U.S. bonds an AAA rating.
"The only thing separating U.S. debt from Greece debt is the Federal Reserve’s printing press," the organization said in a statement, adding that "[we believe] monetization is even worse than default, and U.S. debt already deserves to be rated junk right now."
Finally, given the volatility of the stock market, the NIA has once again reiterated the importance of investing in "real money," namely precious metals. In its view, a sharp decline in the Dow/Gold ratio from 9.3 to below 7 is among its top predictions for 2010.