You dilute a stock and it loses value. You dilute a currency and it loses value. That’s not a difficult concept to grasp unless you happen to be a central banker or an economist. To these “experts”, the concept of dilution is unfathomable.
…The correct economic definition of inflation is to increase (“inflate”) the supply of money…[i.e., when you] increase the supply of currency you dilute the currency…[and it] loses value. Prices rise. Cause and effect. Once upon a time, real economists understood this…but today, in the fantasy world of Western central bankers and modern pseudo-economists, such cause-and-effect doesn’t exist.
Central banks aren’t causing the recent explosion in inflation, they are merely accepting it [and] the reality is that they have absolutely no [other] choice. After you initiate a cause, you can’t wish away the effect. The U.S. dollar (along with other Western currencies) has been diluted – past tense. Now we are reaping the consequences: soaring inflation.
…Central bank-created inflation wasn’t some economic accident to which central banks (and our pathetic governments) are now acquiescing. This was a deliberate monetary crime by the Federal Reserve and other Western central banks – and it didn’t start with Jerome Powell.
Former Fed Chairman Bernanke unleashed his own tidal wave of money-printing (inflation) from 2009 – 2013. This tidal wave can’t be seen in the chart (above) because Powell’s hyperinflationary explosion of dollar-creation has dwarfed it…
Today, not only has Jerome Powell conjured many more trillions of dollars into existence (much faster than Bernanke) but the Fed has had no choice but to release much of this funny-money into the broader economy – to prop-up the shattered U.S. economy…
Unless the U.S. government (and other equally insolvent Western economies and central banks) openly acknowledges their folly – and openly accepts the consequences by declaring bankruptcy – it will continue issuing new Treasuries like confetti.
Powell will (must) continue to deny reality and continue along the path to full-scale hyperinflation…and complete economic implosion. U.S. inflation is only “transitory” in the sense that it will be possible to reign in [only] after a formal declaration of bankruptcy by the U.S. government…
Hyperinflation represents the destruction of all wealth denominated in the hyperinflated currency…[so] make sure that your wealth is not “denominated” in U.S. dollars or other (near-worthless) Western currencies [and] that clearly means getting out of cash. It also means vacating all dollar-denominated instruments – starting with U.S. Treasuries – and moving into gold…[which] has provided complete protection from inflation for roughly ten times as long as the U.S. dollar has existed.
Remarkably, near-worthless U.S. dollars can still be exchanged for gold at a rate of less than $2,000 per [troy] ounce. Silver is an even greater bargain for those looking to exit these dying currencies.
You can buy gold (or silver) or you can be a deer in the headlights. It’s a pretty clear choice.
Editor’s Note: The above version of the original article by Jeff Nielson, has been edited ([ ]) and abridged (…) for the sake of clarity and brevity to ensure a fast and easy read. The author’s views and conclusions are unaltered and no personal comments have been included to maintain the integrity of the original article. Furthermore, the views, conclusions and any recommendations offered in this article are not to be construed as an endorsement of such by the editor. Also note that this complete paragraph must be included in any re-posting to avoid copyright infringement.
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