Gold – Silver – Hyperinflation

It is vital to understand that what we face is by no means the plain vanilla version of governments just printing into hyperinflation. These people are fighting back as is ALWAYS the case with core and major economies. The German hyperinflation took place AFTER a revolution with a unstable government that lacked credit. When there is “credit” then government FIRST tries to keep the game afoot and that means the bankers threaten they will collapse unless debt is serviced. This is why the FIRST response is all out financial war against the people.

Literally, you will PRAY for only hyperinflation. Society CAN survive that. It cannot and has NEVER survived an all out Sovereign Debt Crisis. I hope to have a book out this year on this subject covering NOT my OPINION, but uncovering every event and how do empires, nations, and city states die. There is just too much bullshit out there. There is a danger that unless we turn back, we could end up in World War III and a new Dark Age. One reader wrote:

Am following your reasoning about hyperinflation etc and very illuminating it is. I can appreciate deflation overwhelming printing and forcing the USD higher — in which case tangible asset protection becomes a chimera? As you also say the USD will be the last to plummet during a bond collapse ( inflationary?) so then tangibles rise? Separately you said earlier that any gold held had better be in coin form,I believe you were talking in the context of the underground economy. Ditto Silver coins? Am an avid daily reader of the blog and greatly indebted to you for throwing light over the darkening scene.

The USD will rise FIRST because the Sovereign Debt Crisis emerges on the peripheral of the core economy. Today that is Europe and Japan. I had a front row seat with the Euro since the commission came to us and attended our London conference taking the whole back row. As Europe and Japan implode, capital rushes from one currency to the next and that pushes the dollar higher. As the dollar soars, currency wars and trade wars always follows. The rise in the dollar will reverse the trend on the debt and it will appreciate in “real terms”. When I met with the US Treasury back during the Reagan Administration to argue against the rate hikes of Volcker, using that simple pocket calculator the debt would jump 800% by the end of the decade of the ’80s. I was told point-blank, it was ok because they would be paying back with cheaper dollars. (more)

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