The word ‘hyperinflation’ gets bandied about a lot these days, so diluting the seriousness of the threat that millions of Americans are missing out on the chance to protect themselves with gold investments. Posted by James Randolph on March 30, 2011
Buy gold today to preserve your wealth for tomorrow.
March 30, 2011 – The word ‘hyperinflation’ gets bandied about a lot these days, so diluting the seriousness of the threat that millions of Americans are missing out on the chance to protect themselves with gold investments.
America went through the Great Depression and several serious recessions, yet life went on. Americans have weathered double-digit inflation and crushing losses on Wall Street, and life went on. But hyperinflation is something far worse than anything we have ever dealt with before – and very few of us are prepared to take the hit.
There is a common misconception about hyperinflation, spread by those same people responsible for bringing it on: it’s nothing more than a higher level of inflation, which for most will be compensated for by rising wages, and it is something that the government can control with more of the same deflationary nonsense. No, no, and no.
Inflation means only that a currency is losing value relative to other currencies. Not a particularly desirable thing, but quite survivable. Hyperinflation means that the world has given up on a currency all together and no longer will accept it for trade. In other words, it has become completely worthless.
For the mathematically inclined, dividing the value of anything purchased on the global market (such as gold bullion) by the value of the dollar (zero) means you will need infinite dollars to buy anything. Even Bernanke can’t print that many bills and no employer will ever pay that salary.
Very bad news. But now consider hyperinflation on a global scale, because that is exactly where we are headed. With Japan soon to start up its presses and very strong hints that QE3 is just around the bend, not to mention all of those other major economies trying to deflate their way out of debt, the deluge of funny money is bound to bring the global monetary system to its knees.
When that happens currency tied assets won’t be worth the paper they are printed on. Yet that is where our government is urging its citizens to put their money.
We would be well advised to heed China’s advice to its citizens instead: buy gold today to preserve your wealth for tomorrow.
Senior Staff Writer – Certified Gold Exchange