Gold, Silver, and Hyperinflation

English: The Obverse of the 2009 Zimbabwe $100 trillion banknote. (Photo credit: Wikipedia)

Most commentators in the precious metals sector still are not treating hyperinflation as a likely scenario -- as “competitive devaluation” continues to relentlessly drive all of this paper to zero. I can prove this. How? Because these commentators continue to issue (long term) “price targets” for gold and silver.

Indeed, many articles discuss “revaluing” gold at some arbitrary number as some Final Solution to fix these broken markets. Revaluing? Clearly a reminder of the definition of hyperinflation is in order.

Paper goes to zero (near-zero). Prices for hard assets go to infinity (near-infinity). Not “5,000.” Not “10,000.” Not even “100,000.” We are no longer talking about “high prices.” We are talking about Zimbabwe prices.

(Western) money-printing is increasing exponentially. Sovereign debt amongst these Western Deadbeat Debtors is increasing exponentially. Exponential curves only have one, possible ending: things blow up. The explosion of sovereign debt will (must) result in debt-default – and Debt Jubilee. The explosion of money-printing will (must) result in full-fledged hyperinflation. Read more >>