Therefore, I am confident in predicting the following sequence of events:
• By March of 2011, once higher commodity prices reach the marketplace, monthly CPI will be at an annualized rate of not less than 5%.
• By July of 2011, annualized CPI will be no less than 8% annualized.
• By October of 2011, annualized CPI will have crossed 10%.
• By March of 2012, annualized CPI will cross the hyperinflationary tipping point of 15%.
After that, CPI will rapidly increase, much like it did in 1980.
I think he is spot on. This isn't going to directly cause the debt collapse that I have been warning about in the blog - countries can survive for years with hyperinflation - but it will make life very different. I think a temporary solution would be to use some other currency for savings and for day to day purchases, maybe the Canadian dollar.