Hyperinflation and Unemployment Two Signs of Serious Trouble

09/15/10 Paris, France –

The big news from yesterday was the rise in the price of gold. It went up $24 to a new all-time high. The stock market was just about flat.

What does it mean?

Well, the dollar is going down, for one thing. Bonds too. Has the long-awaited turnaround in the bond market finally begun? We don’t know. We really didn’t expect it so soon.

John Williams, who keeps track of what is really going on in the economy at his “ShadowStats” outfit, says to expect hyperinflation within 6 to 9 months.

Seems too early to us.

But a major turn in the bond market…and much higher inflation rates…are coming. And you don’t want to be holding US bonds…or muni bonds…or any kind of bonds when they arrive.

What then?

Cash and gold. Those are the only reasonably safe positions now. Your gold will go up. Your cash will go down. You’ll come out even. That will be a lot better than most people.

Entire Article HERE

Why Hyperinflation is Coming to America and How to Prepare Now | Sovereign Investor

Germany in the early 1920s was a desperate place when prosperity was spreading across the United States. The Allied victory in World War I had forced a tremendous financial burden on the new republic with France and England especially hard on Germany for war reparations. Eventually, the Germans couldn’t meet the ridiculous terms of payment and in order to settle financing obligations in gold, had to start printing – and print they did.

322% to 19,000% Inflation Per Month

The German currency was relatively stable at about 60 marks per U.S. dollar during the first half of 1921. But the “London ultimatum” in May 1921 demanded reparations in gold be paid in annual installments of 2 billion gold marks plus 26 percent of the value of Germany’s exports. The first payment was paid when due in August 1921. It all went downhill from there.

Entire Article HERE

HYPERINFLATION OR HYPERDEFLATION?

James Turk’s article Hyperinflation Looms dated April 20, 2010, is based on Quantity Theory
of Money (QTM). It draws an analogy between Weimar Germany of 1923 and the United
States of 2010. Both precepts are invalid. As far as the QTM is concerned, it suffices to point
to the very fact, admitted by Turk, that it is possible to have a shortage of money
simultaneously with the overworking of the printing presses. Hyperinflation is not the same as
the ultimate inflation of the money supply. It is the ultimate depreciation of the currency unit.
The two concepts are far from being the same, QTM notwithstanding.

Entire Article HERE