Gold and Silver are alternate currencies and its supply cannot be manipulated by central banks...its always a storehouse of value and particularly important at this junctions because of the paper printing without corresponding real GNP increase....inflation for sure,,,marvinmba
Why Our Credit Crunch Mirrors the Weimar Hyperinflation from 1919-1923 [View article]
Instead of comparing the present USA economic policies to past Germany lets look at the fundamentals that are here in the United States. Textbook definitions and common sense suggest that money supply growth beyond GNP growth is inflationary. Our money supply is the (money in circulations) times the velocity of the money. USA has been printing money and the reason it has not shown up yet as inflation is due to two things. 1) Banks and other institutions are hording money and limiting credit so that the velocity is practically zero. 2)The effect of stimulus takes about 12 months to work thru the system. If you take a look at M3 in Shadow Statistics you will see that M3 is climbing and were going to be in deep trouble sooner or later. There is no such thing as a free lunch and Treasuries are now paying zero is a bubble and this too will pop and interest rates will go sky high. Be prepared for super inflations and I said before we do not need to compare ourselves to Germany...OUR INFLATIONS IS GOING TO BE HOME GROWN....MarvinMBA
Its going to be tougher for the Treasury to fund the debt...the load will become unbearable and there are not enough investors out there that will accept the petty interest rate...there is suppose to be an inflation premium but that seems to have evaporated...what we have now is a combination of high inflation, low interest rates and questionable energy supply/prices as well as a potential Iran problem which includes now Russia. It might turn out the only thing of value will be your brain and its ability to survive under extreme challange and physical adversity going forward.
A Look at Possible Gold Trends [View article]
Why Our Credit Crunch Mirrors the Weimar Hyperinflation from 1919-1923 [View article]
Textbook definitions and common sense suggest that money supply growth beyond GNP growth is inflationary.
Our money supply is the (money in circulations) times the velocity of the money. USA has been printing money and the reason it has not shown up yet as inflation is due to two things. 1) Banks and other institutions are hording money and limiting credit so that the velocity is practically zero. 2)The effect of stimulus takes about 12 months to work thru the system. If you take a look at M3 in Shadow Statistics you will see that M3 is climbing and were going to be in deep trouble sooner or later. There is no such thing as a free lunch and Treasuries are now paying zero is a bubble and this too will pop and interest rates will go sky high. Be prepared for super inflations and I said before we do not need to compare ourselves to Germany...OUR INFLATIONS IS GOING TO BE HOME GROWN....MarvinMBA
Bond Expert: Historic Day Wraps [View article]