Hyperinflation

Investors Must Become Traders

The Past Is No Longer A Guide For The Future The financial and economic world has changed, dramatically!  What lies ahead is bigger change still. Few are capable of even imagining what is likely to occur. Forces driving change are diverse and include technology, the imposition of demonstrably incorrect economic policy and increasing government interventions. The first force is arguably [...]

How Can Hyperinflation Be Avoided?

Kyle Bass, via Zerohedge, provided his thoughts on how the current economic mess might end: Trillions of dollars of debts will be restructured and millions of financially prudent savers will lose large percentages of their real purchasing power at exactly the wrong time in their lives. Again, the world will not end, but the social fabric of the profligate nations [...]

Investing Guidelines Are No Longer Relevant

The financial and economic world has changed, dramatically!  What lies ahead is bigger change still. Few are capable of even imagining what is likely to occur. Forces driving change are diverse and include technology, the imposition of demonstrably incorrect economic policy and increasing government interventions. The first force is arguably one for good. The latter two are not and their [...]

Why Investors Must Behave More Like Traders

The Past Is No Longer A Guide For The Future The financial and economic world has changed, dramatically!  What lies ahead is bigger change still. Few are capable of even imagining what is likely to occur. Forces driving change are diverse and include technology, the imposition of demonstrably incorrect economic policy and increasing government interventions. The first force is arguably [...]

Bigger Hangover Ahead

Almost one year ago (Nov. 3, 2011), I published a piece entitled Hangover From Hell that was highly critical of the approach to economic policy being applied around the world. Sadly, the policies have not changed since that article. Nor have these policies revived economies. Indeed things have gotten worse! Both the US and Europe have administered more alcohol to [...]

Ponzi Scheme Government

It is interesting to go back and look at thoughts and interpretations of events from the past. Sometimes it is embarrassing. This post from almost three years ago, seems rather accurate in light of subsequent developments. The Ponzi Scheme that government had become only continued, as expected. At that time three alternatives were reviewed with respect to how government would [...]

My Rationale For Owning Gold

Regular readers know that I favor holding gold when inflation is a perceived threat. Gold is less an investment than a store of value, a means of retaining purchasing power. Gold is not an investment with which to make money. It is a means of protecting money you already have. There is no certainty regarding an outbreak of inflation of [...]

Turk vs. Prechter: Hyperinflation vs. Depression

James Turk believes hyperinflation is ahead. Bob Prechter believes massive deflation is coming. An interesting discussion between the two takes place in this audio. Ultimately, both lead to Depression. Only the route taken differs, but that is important. https://www.youtube.com/watch?v=aVm-aVA-kU8

Why High Inflation Is Inevitable

How this economic disaster ends is something about which many of us speculate. Two extreme endings are likely — a sudden deflationary collapse or a period of very high inflation/hyperinflation which ultimately cripples commerce and resolves itself in a deflationary collapse. In either case, the deflationary collapse is another Great Depression. It is important to know which route will occur because [...]

It Looks Like Inflation or Hyperinflation Ahead

Do Not Miss the Audio Below! Ultimately the debate as to whether this crisis ends in a deflationary or inflationary collapse will be decided by the outplay of several forces. While it is impossible to determine which way this drama plays out (it could go either way), there are reasons to believe either position. Ultimately which side one takes depends [...]

A Simple Example and Explanation of Hyperinflation

To understand hyperinflation, this example from Art Cashin dealing with the price of a German loaf of bread is enlightening: To understand the incomprehensible scope of the German inflation maybe it’s best to start with something basic….like a loaf of bread. (To keep things simple we’ll substitute dollars and cents in place of marks and pfennigs.  You’ll get the picture.) [...]

Housing In A Nutshell

Hat Tip to Reader NII with my note after the graph: Short run thinking by politicians permitted mortgage credit to excessively expand. Credit expansion shifts consumption from the future to the present.  The “future” is here. I don’t think the general public realizes yet that the 20-25 year boom in mortgage lending (low rates, lower lending standards) has resulted in [...]