http://albertpeia.com/fearthebighyperinflationcoming.htm
For the last 80 years or
so, financial theory has held that inflation and deflation were mutually
exclusive events. We’ve now seen that idea go up in smoke as deflation affects
home prices and incomes in the US at the very same time that we experience
inflation in energy and food prices courtesy of the Fed’s insane money
printing.
Indeed, Ben Bernanke is a
disciple of the belief that to battle deflation, one must inflate the financial
system/ economy. Never mind that history has shown this to be total bunk
(monetization has always inevitably led to higher inflation), Bernanke is an
academic and has devoted his life’s work to this misguided belief.
As a result, the man with
the greatest control over the value of the US Dollars you own is a man who is
so hell-bent on proving his theories that he can and is completely ignoring
hard evidence that refutes them.
Case in point, Bernanke and
the Fed continually state that inflation is “contained” or “transitory.” This
is simply incredible when you consider that food prices, energy prices, rent,
and other measures of the cost of living are up double-digit percentage points
year over year.
In fact, nothing proves
just how insane these people are (either that or they’re pathological liars)
than the claim that because iPads are other technological items are becoming
cheaper, that overall the cost of living is not increasing much.
Yes, you read that
correctly. High ranking members of the US Federal Reserve believe that because
a one time purchase of an iPad is cheaper, the increase in the daily cost of
food and energy is balanced out.
I bring all of this up,
because the Fed is so afraid of de-flation that it is ignoring the
clear signs that we are heading towards massive inflation and possibly even
hyperinflation.
Throughout history all
episodes of hyperinflation have been caused by the same actions: the
monetization of debt to fund massive deficits.
This policy works
temporarily until the country in question loses credibility in the bond market
(bond investors are no longer willing to lend it money). At that point the
country enters a currency crisis and experiences hyperinflation.
Sounds familiar, doesn’t
it?
Indeed, the US Fed bought
73% of all debt issued last year to fund the US’s deficit. The only reason
we’ve been able to get away with this is because the US has the most
credibility of any country in the world (we’ve never defaulted on our debt).
However this credibility
only goes so far. And we’re on very very thin ice: a 10% deficit and a Debt to
GDP ratio over 100%.
I will be blunt here, we
are following the precise formula for hyperinflation to a “T.” The only reason
it hasn’t hit yet is because the US hasn’t lost all credibility yet.
But at this rate, it’s only a matter of time.
So if you’re no preparing
for inflation already, you need to get moving now. The Powers That Be are well
aware that we’re in big trouble. Consider Mitt Romney’s recent admission that a
former head of the NY Fed admitted that as soon as the Fed stops buying all the
US debt we’ll have a failed Treasury auction and interest rates will
soar.
Make no mistake, the time
to prepare for higher inflation is NOW before this happens.
On that note, I’m currently
preparing subscribers of my Private
Wealth Advisory newsletter for the coming inflationary
storm with a Special Inflation Portfolio consisting of unique, unknown
inflation hedges that will outperform even Gold and Silver as inflation rips
through the financial system.I’m talking about extraordinary asset plays
trading at massive discounts to their real value.One of them is a junior Gold
company with reserves valued at over $9 billion. Today it’s entire market cap
is less than $300 million.Another one is a Silver play
currently valued by the market at less than 10% of its known reserves.
And it’s already producing (so this is not some “pie in the sky” play
on future discoveries)I’ve got three other plays up my sleeve. I expect all of
them will be up in the double digits in the weeks to come.To find out what they
are, all you need to do is take out a trial subscription to my Private
Wealth Advisory newsletter.
You’ll immediately be given access to my Special Inflation Portfolio as well as
my three Special Reports titled Protect Your Family, Protect Your Savings, and
Protect Your Portfolio.Collectively, these reports outline critical
information for the coming crisis including:1) What banks are most
exposed to systemic risk.2) How, why, and where to buy Gold and
Silver bullion.3) How much food you need to stockpile, where to buy
it and how to store it.And more!To take out trial subscription to Private
Wealth Advisory…Click
HereNow!!! Best Regards,Graham Summers