America – what I think is coming the next few years

Now that the Obama election is in the books, here’s how I see the next few years. You can tell me if I’m right.
I believe right now the Republicans have a dilemma: they can either agree to Obama’s proposal to raise taxes on the wealthy in order to fix budget problems or be blamed for a decline in the economy once automatic budget cuts kick in. If Boehner and the Republicans give in to Obama, I see an increase in taxes and cut backs in some businesses thereby increasing the unemployment rate. If Obama and the Republicans cannot come to a budget agreement and automatic budget cuts are made, an increase in unemployment will ensue. I believe in the next two years the unemployment rate will rise above 10%.
In both circumstances, the drumbeat will continue for increased taxes on higher incomes. The elections of 2014 will do little to change the balance of power and may even swing the House of Rep. in the Democrats favor if enough people interpret the bad economy as a result of Republicans’ unwillingness to raise taxes. If Democrats gain control of the House and the Senate, I expect taxes to be raised with no positive effect on the economy.
After 2014, Obama and Congress will realize that increasing taxes has had no positive impact and arguments will be made for either stimulus or other methods to increase the supply of money. Lowering interest rates will no longer do since interest rates cannot go much lower. This increase in money supply causes increased spending resulting in inflation and within two years I expect the rate of inflation to go past 5%.
An analysis of the two charts on these pages
http://inflationdata.com/inflation/Inflation_Rate/HistoricalInflation.aspx
http://www.shadowstats.com/charts/monetary-base-money-supply
shows that prior to the inflation period of the Carter years the money supply had a huge increase. After Reagan was elected there was a tightening of the money supply. This was important because inflation feeds on itself. If you expect higher prices you will raise your prices to have more money later. Tightening the money supply removes this expectation.
If (and this is a big “if”) we elect a president in 2016 who does not understand this, the temptation will be to increase the money supply to combat unemployment at the expense of inflation. There will be no willingness to put America through a recession to weed out the inflation. If this happens, I expect unemployment to remain well above 10% and inflation to rise above 10% as well. If nothing is done over time to combat this, I expect hyperinflation to hit the U.S.
What I found out when researching for this “essay” is that Nazi Germany is not the only country that has experienced hyperinflation. Regardless, there has been one constant in nearly all countries that have experienced hyperinflation and that is the replacement of the current currency with a new one. In this case, what will the dollar be replaced with?
According to this article
http://www.thedailybell.com/1084/Euro-Crisis-to-Set-One-World-Currency.html
the financial difficulties in Europe are being floated as a reason for a one-world currency. With the dissolution of the dollar, I expect the push even harder for such a thing.
One final consideration. I find it no coincidence that the Bible speaks of a “mark of the beast” whereas no person can buy or sell without it and the enduring problem of identity theft. One thing I learned when researching Nazi Germany’s hyperinflation is the amount of looting involved by people who were just trying to survive. I expect the same to be done again and this time there is rampant identity theft. The solution to such a thing is to have our identify implanted in us or us. All that is needed is to have a new central bank electronically control all these transactions and the picture is complete.
What can keep all this from happening? Moral and fiscal restraint. As of now, I don’t see any signs of this happening.