Based on the Fed’s Charts, Hyperinflation Is Already Here

The U.S. is entering an era of hyperinflation, warns Lynette Zang, Founder & CEO of Zang Enterprises, adding that the transition in the U.S. has already begun.

"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 at 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."

Zang sees the economy holding up well through the U.S. elections on November 5th, but then she projects that the macroenvironment will deteriorate quickly.

"What they have in mind for us takes us back to feudal times," she described.

Zang pointed to the FRED's chart showing the Purchasing Power of the Consumer Dollar in U.S. City Average, stating that even the Federal Reserve tells you the greenback can approach zero.

"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."

Watch the video above for Zang's breakdown of this chart and how this could happen.

The U.S. banking sector is 'extraordinarily sick'

Zang described the U.S. banking sector as "extraordinarily sick."

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, which is on pace to surpass 2023's 99 deal announcements, according to S&P Global.

There has also been a surge in bank branch closures. Last year, nearly 2,500 bank branches closed. On top of that, more than 400 branches have closed so far in 2024.

This all comes as U.S. regulators made significant changes to their proposed bank capital rules, cutting the expected impact on the largest banks by about half and exempting smaller lenders from major parts of the plan. Fed Vice Chair for Supervision Michael Barr 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% down to 9%.

Zang forecasts a huge crisis in 2025 as the public starts to lose confidence in the U.S. dollar. 

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

This article originally appeared on Kitco News.