Morgan Stanley reported in 2009 that there is no historical precedent for an economy that exceeds a 250% debt-to-GDP ratio without experiencing some sort of financial crisis or high inflation. U.S. debt now exceeds GDP by roughly 400%.

Investment expert Marc Faber reports that once a country’s payments on debt exceed 30% of tax revenue, the currency is done for. Michael Murphy projects we’ll hit that figure by October 2011.

Peter Bernholz, a leading expert on hyperinflation, states that hyperinflation is caused by government budget deficits. This year’s U.S. budget deficit will end up being $1.5 trillion, an amount never before seen in history.

Since the Federal Reserve’s creation in 1913, the dollar has lost 95% of its purchasing power. Our politicians and bureaucrats apparently don’t know how or don’t wish to maintain a strong currency.