Inflation/Deflation

The root cause of hyperinflation is a large Government deficit which is financed by money creation rather than other options like increased borrowing or higher rates of taxation. The following infographic looks at 5 occasions when currencies crashed in a big way.

The longer the economy stays shutdown, the more money we will print; increasing the risk of hyperinflation so we are starting to...

Hyper-inflation will spread from country to country just as the coronavirus has starting most likely in the U.S. and within the EU quickly be followed by Japan and most other developing countries. Got gold?

Exactly what is inflation, and how do we measure it? It is very important to investors, savers, and people in general, that we understand.

I will prove in this piece, the people who believe in the “low inflation” myth are being fooled by the fact that inflation in this unusual, central bank-driven economic cycle is concentrated in asset prices rather than in consumer prices...

The debate over deflation/inflation continues as some of our most astute economic observers take sides. Frankly, I think that both sides are missing part of the picture. The debate concentrates on the after shocks of inflation/deflation: prices instead of the money supply and the demand for it. Words: 721

Without pricing power or a large fiscal deficit and large foreign currency demands, it simply isn’t credible to claim that hyperinflation in the U.S. or the U.K. is in the offing now or anytime in the immediate future.

It now looks that inflationary pressures are starting in earnest...In the last two years, inflation has gone from 0% to 2.5% which is a 5-year high...and could easily reach 10% in the next couple of years and ultimately a lot higher as inflation turns into hyperinflation. That will have an explosive effect on metal prices.

James Turk believes hyperinflation is ahead. Bob Prechter believes massive deflation is coming. An interesting discussion between the two takes place in this audio. Ultimately, both lead to Depression. Only the route taken differs, but that is important.

The Great Depression was the most severe economic depression ever experienced by the Western world and it was during this troubled time that the world’s most famous case of deflation also happened.