Tag Archives: hyperinflation

The U.S. caused the 1930s deflationary depression and is again the cause of the current contraction. Although similarities exist between the two, the differences between them insure a far more consequential outcome today than in the 1930s. [Indeed, the world] now finds itself on the edge of a growing deflationary sinkhole created by the sequential collapse of two large U.S. bubbles, the dot.com and U.S. real estate bubbles. Words: 1549

My first reaction when I read an article* on this site by Arnold Bock - articulating why gold would go to $10,000 – by 2012 no less - was amazement. Who in their right mind would suggest that gold would eventually reach $2,500, let alone $5,000 or even $10,000? Words: 2097

It is clearly evident that America's debt picture is truly astronomical and, like the situation with Greece, the debt cannot, and never will, be repaid. Indeed, any way you look at it, the consequences for the United States, let alone the many other haunted economies, are grim, dismal - even disastrous. Words: 1166

for the coming months, deflation is the bigger concern than inflation as China and the EU both experience slowing growth, and the inflation figures remain tame in both the US and Japan - [and that means we are likely to see a DROP in gold prices.] Words: 481

There are very compelling arguments for both inflation and deflation. The answer will eventually depend on decisions made in Washington and how people react to those decisions. For now, let’s stop fooling ourselves and admit that we don’t know. It is a problem that has to be dealt with and there is no easy medicine. Either path will be painful, but that’s what we get for our two and a half decade debt binge. Words: 1142

America's massive debt and unfunded liabilities make inflation the only viable option for today’s policymakers because when the value of future dollars is diminished, future obligations in those depreciated dollars are diminished. Words: 2808

I would welcome a public debate of my thesis that risk-free bond speculation suppresses the rate of interest and destroys capital in the process. I have challenged neo-classical economists who still consider the open-market operations of the Fed as a ‘refined tool to manage the national economy’. I want them, instead, to see in open-market operations the cancer of the economy responsible for the withering of the world’s prosperity. So far my challenge has fallen upon deaf ears. Words: 2854

Those in the U.S. power structure know what the plan is if the U.S. dollar should fail. They are not admitting publically that there is even the remotest chance that it could happen but, rest assured, there is a plan. There is always a plan. To paraphrase Franklin Roosevelt, nothing happens by chance in government, so don’t be caught up in such a ‘surprise’ event - whatever it may be and whenever it occurs. Words: 1345

We are currently about one year into a two year grace period before people will begin to realize that their money isn’t 'real' but simply 'magic' money. In the meantime the 'smart' money is buying up hard assets like gold, knowing that it is the only form of money that isn’t simultaneously someone else’s liability and, unlike 'magic' money, can’t be created out of thin air. Words: 785