Inflation/Deflation

With deficits growing wider each year, we believe there is a very high likelihood that the price of gold will rise in the next few years.

There are two specific reasons why runaway inflation did not happen a decade ago, and why it won’t likely happen now, either:

The Federal Reserve is now trying to figure out ways to boost inflation expectations... so that Americans are encouraged to spend more before their money is worth less. Unfortunately, not only will their money soon be worth less, it will literally become worthless! Words: 904

To hear Federal Reserve officials, politicians and mainstream financial media pundits tell it there is no inflation... but inflation defined correctly is rampant. In fact, it is at all-time record levels.

A look (not a prediction) at a series of not improbable events that could develop [and which] would change our economic world overnight.

The value of a currency is determined by a number of variables. In this article, I will focus on the dynamics of demand, supply, current account deficits, and aggregate government debt.

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.

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?

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.

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...