Aug 24

H/t reader squodgy:

“If we can’t all learn from the situation in Venezuels, which has been created by the banksters as a lesson to the people for wanting to share the spoils of their oil assets, then we have no hope.

It is coming to us all, we have had enough warnings and notice, we have no excuse.”


Total Societal Collapse: What the Media Isn’t Telling You About Venezuela:

Venezuela — Life in Venezuela now consists of empty grocery stores, record rates of violent crime, and widespread shortages of just about everything. The economic and political conditions have been deteriorating for years, but recent stories coming from this once-rich nation are astonishing. Bars have run out of beer, McDonald’s can’t get buns for their Big Macs, and rolling blackouts are a regular occurrence. The average person spends over 35 hours a month waiting in line to buy their rationed goods, and even basics like toilet paper and toothpaste are strictly regulated.

The fiasco began when the price of oil collapsed and sent Venezuelan finances into chaos. The oil-dependent nation, despite its imposing government policies, couldn’t prevent the fallout. The current problems are further compounded by rampant corruption throughout the Venezuelan government. The likelihood of a peaceful resolution is decreasing by the day, and political dissents are likely to be met with brutal crackdowns. The desperation of the masses could explode violently under the right circumstances, and there are few things more dangerous to a nation than a hungry population. Continue reading »

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Aug 21

How to Survive the End of the World as We Know It

@Amazon.com: How to Survive the End of the World as We Know It: Tactics, Techniques, and Technologies for Uncertain Times


If you want to survive a collapse scenario this is a must-listen interview:

Survival Expert James Rawles Warns: “There’s Going To Be A Massive Run On Firearms… Bigger Than Anything We’ve Ever Seen Before” If Hillary Win Is Imminent:

Survival Expert James Rawles Warns: “There’s Going To Be A Massive Run On Firearms… Bigger Than Anything We’ve Ever Seen Before” If Hillary Win Is Imminent

James Wesley Rawles is a former intelligence officer of the United States Army, prolific author and one of the top survival experts in the world. In his best-selling book series Patriots he paints a terrifying picture of a post-collapse America where food is scarce, currency is worthless, law and order have broken down, and survival is a daily struggle. It’s a fictional tale, of course, but one that is grounded in real-world possibilities. Continue reading »

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Aug 17

Flashback.


weimar-hyperinflation

Gold & Silver Prices Under The Weimar Republic’s Inflation

* * *

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Jul 18

Deutsche Bank Loves Helicopter Money: Why “Big Inflation Is Coming… But Will First Require A Crisis”:

Helicopter policies are not advocated in ‘a normal world’. They are however almost inevitable in the next recession. “Japan will be the flag bearer of fiscal stimulus.” Which will be sufficient to breath some inflationary spirit into the system. “But this is all febrile and can get over-turned by the slightest change in wind direction,” he said, tentative. “This will be the little inflation before the big helicopter-driven inflation.” But that will first require a crisis.

* * *

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Jun 21

Jun 10, 2016

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Jun 16

Question of the Day: When Was the Last Time the Yield on German 10-Year Bonds Went Negative?:

Think back. Many readers have been trading for 10 or 20 years. A few have been trading for 30 or more years. What was it like the last time German 10-year bond yields went negative?

That is sort of a trick question. Most likely you were not alive, no matter how old you are.

As translated from Spanish, my friend Guru Huky posted the answer on his blog today: And the last time the German bond stood negative was …. surprise surprise.

German 10-Year Yield Since 1807

Hyperinflation_10YBund

Huky Comments Continue reading »

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Jun 15

How Would You Survive Hyperinflation in Venezuela?:

Venezuela is currently in the throes of a devastating economic collapse that was spawned by the ignorant socialist policies of the Chavez/Maduro government. Everything is falling apart there. The water system, the roads, the electrical grid, the hospital, and especially the food distribution system. Venezuelans are so desperate that they are forced to scrounge for food in dumpsters and hunt down cats and dogs. Crime is rampant as well, and the capital city of Caracas now has the highest murder rate in the world. Mobs of vigilantes are frequently seen picking up the slack of the corrupt police; that is, when they’re not busy looting grocery stores. Venezuela is practically a war zone now. Continue reading »

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May 31

eggs

It costs $150 to buy a dozen eggs in Venezuela right now

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Mar 11

The Germans React To Draghi’s Monetary “Tidal Wave”:

Having discussed the market’s disturbing reaction to Mario Draghi’s desperate “all in” monetary gamble – one which saw an early bout of euphoria followed by one of the most aggressive Euro spikes in history, second only to the “December debacle” and the Fed’s March 2009 announcement of QE1, we were waiting for the just as important reaction by the ECB’s nemesis: the one country that not only has seen hyperinflation first hand (and appears to recall it vividly), but is just as aware where the ECB’s monetary lunacy ends: the Germans.

We got it from Germany’s Handelsblatt, when in an article titled “The dangerous game with the money of the German savers”, the authors provide a metaphorical rendering of what is happening in Europe as follows:

ECB tsunami_1

They also paint an oddly accurate caricature of the man behind this last ditch monetary policy:

draghi burning cash

And write the following:

A determined ECB chief Mario Draghi plows ahead with his negative interest rate policy. The positive effects on the economy are low. Great, however, are the risks: this is the greatest redistribution of wealth in Europe since World War II. Continue reading »

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Feb 12

“Everything calls peace, Schalom! Then it will occur – a new Middle East war suddenly flames up, big naval forces are facing hostiley in the Mediterranean – the situation is strained. But the actual firing spark is set on fire in the Balkan: I see a “large one” falling, a bloody dagger lies beside him – then impact is on impact. …”

There is not much information about Alois Irlmaier available on the internet in English and even less good quality information.

He made his predictions before, during and after WW2.

For more and accurate information I recommend this book (in German):

Alois Irlmaier

Alois Irlmaier: Ein Mann sagt, was er sieht

He predicted the migrant crisis.

He predicted hyperinflation, financial collapse, revolution, civil war, WW3 and the “3 Days Of Darkness”, which will set in during WW3 and will put an immediate end to all combat operations.

He saw (around 1950) people using smartphones in the future.

When Germany was occupied territory he was visited by General Lucius D. Clay’s sister and could clearly describe her home without ever being there. General Clay invided Irlmaier to come to Frankfurt, but he declined. Additionally he was offered and invited many times by a lot of people to come to Amerika and earn a lot of money there with his abilities, but he declined. He clearly stated that he was not interested in earning a lot of money.

In case you think that foreseeing the future is impossible I give you some examples of his abilities:

Alois Irlmaier, my favorite seer, warned the citizens of his hometown during the end of WW2 April, 25, 1945, that at the moment of his warning British bombers were started in England and would arrive within a few hours to bomb the city of Freilassing in Bavaria.

He told the people where to go to be safe and he pointed out exactly to some people, which houses will be destroyed, partially destroyed or which houses will survive almost unharmed or totally unharmed.

He warned people in Rosenheim, Bavaria days ahead of the heavy bombardment on April 18, 1945. He told the people, that when going into the bunker to NOT go to the safest spot, which is in the middle, but to stay near the entrance, because the roof of the bunker would collapse in the middle. It happened just as he predicted and so only a few soldiers who ridiculed and ignored Irlmaier’s warning were buried.

You could give him a picture of any soldier and he could tell you exactly in what condition that soldier was at the moment: Well, injured or dead.

He clearly saw all of this right in front of his eyes, as a picture or like a movie. He did not want to have this ability at all.

It would take an entire book to describe his abilities, his life and what has been said about him.

Here is what lies ahead of us according to him:

A migrant crisis, high inflation, then hyperinflation, financial economic collapse, chaos, revolution, civil war in Italy (Pope will have to flee the Vatican, most priests will be killed), France (Paris will burn, will be set on fire by its own people), Germany, etc.

If my interpretation of what he said is correct, then the greatest revolution of all times will happen in America.

The crisis in the middle east will escalate even further, a highranked (at the level of Obama or Putin) will be killed, then within 24h Russian tanks will be rolling all over Europe.

The U.S. will use drones & advanced chemical weapons to create a death strip to cut of the Russian ordnance.

The Russians drop a bomb (nuclear weapon) into the North Sea, creating a gigantic tsunami, which will flood parts of England, France, Holland, Germany and Denmark.

The start of WW3 is predicted to happen “when the grain will be ready for harvest” (perfect timing!), that means around late July, beginning of August. A lot of other seers have seen the same time of the outbreak of WW3 in their visions.

The war will last around 3 months, then the earth changes will set in. Irlmaier saw a heavenly body, which is probably responsible for the “3 Days Of Darkness” (Nibiru?).

The “3 Days of Darkness” will include a pole shift. So you need to be living in a high place, having a safe place that is pretty much airtight, protecting against the (big) dust particles from the heavenly body and you need lots of supplies and water.

After that he predicts a peaceful time.

“….After these events a long, lucky time comes. Those, who will experience it, will be very happy and can praise themselves lucky. But the people have to begin there, where their grandfathers began.”

And because of the climatic changes, caused by the pole shift, oranges will grow in Bavaria.

The events mentioned in the following article are not in the correct chronological order, but luckily for us somebody made the efoort to translate what Irlmaier said.


Alois-Irlmaier
(1894-1959)

The Prophecies Of Alois Irlmaier

On this page statements of Alois Irlmaier are listed, which refer to a big war in the future. Conrad Adlmaier got these statements when discussing with Alois Irlmaier and published them later. In addition also statements are listed, which Conrad Adlmaier did not publish in his books, but indicated to a third person orally. In these statements Alois Irlmaier shows an almost precise description of a large battle in the future.

What causes the war?

“Everything calls peace, Schalom! Then it will occur – a new Middle East war suddenly flames up, big naval forces are facing hostiley in the Mediterranean – the situation is strained. But the actual firing spark is set on fire in the Balkan: I see a “large one” falling, a bloody dagger lies beside him – then impact is on impact. …”

“Two men kill a third highranked. They were paid by other people. …”

“The third murder occurred. Then the war starts. …”

Continue reading »

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Feb 05

Hyperinflating Venezuela Used 36 Boeing 747 Cargo Planes To Deliver Its Worthless Bank Notes:

The weeks ago, when we showed “What The Death Of A Nation Looks Like: Venezuela Prepares For 720% Hyperinflation“, we said that after looking at a chart of Venezuela’s upcoming hyperinflation…

venezuela inflation_0

…  a hyperinflation in which the soaring stock market has failed to keep pace with the collapsing currency, thereby mocking all erroneous thought experiments that under hyperinflation being long the stock market is a sure hedge to currency destruction…

Venezuela caracas stock exchange adjusted

… we joked that it is unclear just where the country will find all the paper banknotes it needs for all its new currency. Continue reading »

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Jan 22

Venezuela Hits “Point of No Return” – 2016 Bankruptcy Is “Difficult To Avoid” According To Barclays


This Is What The Death Of A Nation Looks Like: Venezuela Prepares For 720% Hyperinflation:

For citizens of Nicolas Maduro’s socialist paradise the news is terrible, and getting worse with every passing day.

Yesterday, we reported that one year after our November 2014 forecast, Barclays has decided that Venezuela is now past the “point of no return”, and a bankruptcy in 2016 will be “difficult to avoid.” But while some may have thought that this dramatic impact, while welcome by the rest of OPEC and oil bulls around the globe, would only impact the government, the reality is that this latest hit means a total disintegration of the economy and will take the country’s already staggering hyperinflation to previously unprecedented levels. Continue reading »

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Jan 16

weimar-hyperinflation

Hyperinflation-Weimar

Source

Strange Currency V2

The World’s Most Famous Case of Hyperinflation (Part 1)

The Money Project is an ongoing collaboration between Visual Capitalist and Texas Precious Metals that seeks to use intuitive visualizations to explore the origins, nature, and use of money.

The Great War ended on the 11th hour of November 11th, 1918, when the signed armistice came into effect.

Though this peace would signal the end of the war, it would also help lead to a series of further destruction: this time the destruction of wealth and savings.

The world’s most famous hyperinflation event, which took place in Germany from 1921 and 1924, was a financial calamity that led millions of people to have their savings erased.

The Treaty of Versailles

Five years after the assassination of Archduke Franz Ferdinand, the Treaty of Versailles was signed, officially ending the state of war between Germany and the Allies.

The terms of the agreement, which were essentially forced upon Germany, made the country:

  1. Accept blame for the war
  2. Agree to pay £6.6 billion in reparations (equal to $442 billion in USD today)
  3. Forfeit territory in Europe as well as its colonies
  4. Forbid Germany to have submarines or an air force, as well as a limited army and navy
  5. Accept the Rhineland, a strategic area bordering France and other countries, to be fully demilitarized.

“I believe that the campaign for securing out of Germany the general costs of the war was one of the most serious acts of political unwisdom for which our statesmen have ever been responsible.”
– John Maynard Keynes, representative of the British Treasury

Keynes believed the sums being asked of Germany in reparations were many times more than it was possible for Germany to pay. He thought that this could create large amounts of instability with the global financial system.

The Catalysts

1. Germany had suspended the Mark’s convertibility into gold at the beginning of war.

This created two separate versions of the same currency:

Goldmark: The Goldmark refers to the version on the gold standard, with 2790 Mark equal to 1 kg of pure gold. This meant: 1 USD = 4 Goldmarks, £1 = 20.43 Goldmarks

Papiermark: The Papiermark refers to the version printed on paper. These were used to finance the war.
In fear that Germany would run the printing presses, the Allies specified that reparations must be paid in the Goldmarks and raw materials of equivalent value.

2. Heavy Debt

Even before reparations, Germany was already in significant debt. The country had borrowed heavily during the war with expectations that it would be won, leaving the losers repay the loans.

Adding together previous debts with the reparations, debt exceeded Germany’s GDP.

3. Inability to Pay

The burden of payments was high. The country’s economy had been damaged by the war, and the loss of Germany’s richest farmland (West Prussia) and the Saar coalfields did not help either.

Foreign speculators began to lose confidence in Germany’s ability to pay, and started betting against the Mark.

Foreign banks and businesses expected increasingly large amounts of German money in exchange for their own currency. It became very expensive for Germany to buy food and raw materials from other countries.

Germany began mass printing bank notes to buy foreign currency, which was in turn used to pay reparations.

4. Invasion of The Ruhr

After multiple defaults on payments of coal and timber, the Reparation Commission voted to occupy Germany’s most important industrial lands (The Ruhr) to enforce the payment of reparations.

French and Belgian troops invaded in January 1923 and began The Occupation of The Ruhr.

German authorities promoted the spirit of passive resistance, and told workers to “do nothing” to help the invaders. In other words, The Ruhr was in a general strike, and income from one of Germany’s most important industrial areas was gone.

On top of that, more and more banknotes had to be printed to pay striking workers.

Hyperinflation

Just two calendar years after the end of the war, the Papiermark was worth 10% of its original value. By the end of 1923, it took 1 trillion Papiermarks to buy a single Goldmark.

All cash savings had lost their value, and the prudent German middleclass savers were inexplicably punished.
Learn about the effects of German hyperinflation, how it was curtailed, and about other famous hyperinflations in Part 2 (released sometime the week of Jan 18-22, 2016).

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Jan 13

FYI.


Sep 12, 2015

Ron Paul speaks on the upcoming financial collapse that will be far worse than the 2008 collapse. It’s not a matter of if but when it will happen.

Federal Reserve - Fed

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Jan 04

Angola’s Currency Collapses To Record Low As “Hyperinflation Monster” Looms Over Africa:

Just two weeks ago we warned of the looming “hyperinflation monster” in Africa with the continent appearing to be running out of dollars as some of Africa’s largest economies, including Nigeria, Angola, Ethiopia and Mozambique, are restricting access to the greenback to protect dwindling reserves. Specifically we warned of Angola’s already-soaring inflation hampering its ability to ‘adjust’ its currency towards its black market ‘reality’. But that did not stop the central bank devaluing Kwanza by 15% over the weekend – the most since 2001 – to record lows as crude prices crush their economy and the flow of USDs.

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Jan 01

H/t reader squodgy:

I often wondered what happened to the predicted hyperinflation following QE.

It never happened.

OK, inflation in school fees, obamacare etc has been negated by cheap oil, and yes, food costs are indeed rising, but the expected rampant inflation across the board never happened….why?

It made the doom-mongers look daft.

Here’s why…..we never saw it, it all went to the club.

I was asked: Whatever Happened to Inflation after all this Money-Printing?

* * *

In my opinion real hyperinflation (incl. consumer price inflation) is coming and the euro, the dollar and the Japanese yen will become worthless.

It will take just a little longer.

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Jul 22

Hyper-Mario-Draghi

– Citi Predicts Greek Hyperinflation Breaks Out In Two Years (ZeroHedge, July 21, 2015):

Earlier, we showed that according to Citigroup (among many) for Greece to have any hope of surviving, it needs a masive debt haircut: the bigger, the better, with Citi tossing out numbers as high as €130 billion. Still, even if Greece does get debt relief, as long as it remains in the Eurozone, its economy has nothing but hell to look forward to.

Here is how Citi previews the next few years: Continue reading »

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May 20

H/t reader squodgy:

“AGENDA 21 by inflation and food supply”


GLOBAL FOOD CRİSİS Special Report World Food Crisis “2015”

Mar 13, 2015

Global Food Prices RISE. Prepare for Hyperinflation and Riots!

Jun 10, 2014

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Mar 09

Greenspan

– Alan Greenspan Warns Of Explosive Inflation: “Tinderbox Looking For A Spark” (SHFTplan, March 8, 2015):

Last month it was revealed that former federal reserve Chairman Alan Greenspan, the architect of U.S. monetary policy under four Presidents, is anticipating a significant market event as a result of the trillions of dollars that have been pumped into the system over the last several years. According to Greenspan, something big is coming.

His comments were shared by well known resource analyst Brien Lundin, who joined Greenspan for private discussions at last year’s New Orleans Investment Conference. In his latest interview Lundin further clarifies Greenspan’s private thoughts on current economic and monetary policy and sheds light on the former Fed Chairman’s suggestion that ‘something big is coming.

Greenspan made some good points to me… He was concerned about inflation… He was specifically concerned in relation to the outstanding, or excess, reserves which are close to three trillion dollars being held on the Fed balance sheet now… That money is just hanging over the U.S. economy like a big water balloon of liquidity and it’s just searching for a pin.

In fact, Greenspan referred to it as a tinderbox of explosive inflation looking for a spark.

Watch the full insider interview: Continue reading »

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Feb 26

Ukraine Enters Hyperinflation: Currency Trading Halted, “Soon We Will Walk Around With Suitcases For Cash” (ZeroHedge, Feb 25, 2015):

Yesterday we summarized the most recent economic, political and social situation in Ukraine as follows:

“A year or so on from the last coup in Ukraine, Ukraine’s former Prime Minister Sergey Arbuzov told TASS, with growing popular discontent, “another state coup can’t be ruled out in Ukraine.” As the cease-fire deal hangs torn and tattered in the Debaltseve winds, the nation is a mess: a new gas dispute looms as Gazprom demands upfront payments; capital controls have been tightened as the $17.5bn IMF loan may not be enough; and the central bank governor faces prosecution as the economy craters. All of these factors have driven massive outflows from Ukraine and the Hryvnia has crashed to over 33 to the USD – a record high (and 70% devaluation from the last coup).”

So as the Ukraine government watches its country go down in flames, with the blessings of the US State Department of course, it decided to take action. According to Reuters, with the hryvnia in free fall (see above) the central bank tried to call a halt on Wednesday by banning banks from buying foreign currency on behalf of their clients for the rest of this week. Continue reading »

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Feb 26

Coming to a country near you soon …

This Is The Biggest Problem Facing The World Today: 9 Countries Have Debt-To-GDP Over 300%


This Is What Happens To Gold In A Hyperinflationary Currency Crisis: Ukraine Edition (ZeroHedge, Feb 25, 2015):

As Ukraine’s socio-economic situation goes from wost to worst-er, today’s announcement by President Poroshenko that the government will take actions to stabilize the currency (which as we previously noted, appears to be heading for hyperinflation) has Ukrainians rushing for the exits into precious metals… with only one goal in mind – wealth preservation.

20150225_GoldUAH

This is what gold does in a fiat-currency crisis. Now if only Ukraine actually still had some gold

Furthermore, according to RIA, on Tuesday, Ukrainian television channel Ukraina announced that with the new exchange rate, the minimum wage in Ukraine stands at around $42.90 per month, which according to the channel, is lower than in Ghana or Zambia. Continue reading »

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Feb 26

Ukraine Enters The Endgame (ZeroHedge, Feb 25, 2015):

Back in March 2014 we forecast that it in the aftermath of the US State Department-sponsored military coup in Kiev, it was only a matter of time before Ukraine (all of its sovereign gold having since “vaporized“) succumbed to full blown hyperinflation and economic implosion. Less than a year later, precisely this outcome has finally played out, and as a result, the entire nation has finally entered its economic endgame, one which has two conclusion: either it joins Greece in becoming a ward of Europe (of which it is not an official member) and the IMF (thank you Joe Q Public taxpayer), or it quietly fades away into insolvent “failed state” status.

This is in a nutshell the assessment by Goldman Sachs, presented below, which really doesn’t say much we didn’t cover earlier in “Ukraine Enters Hyperinflation: Currency Trading Halted, “Soon We Will Walk Around With Suitcases For Cash“, but which does lays out the (very unpleasant) alternatives for yet another nation brought to ruin through American neo-colonial expansion, in what may well be a record short period of time. Of these, the primary ones focus on yet another IMF bailout which the agency may find some resistance to as a result of the near-total collapse of Greece at the same time. And not only that but Goldman’s “base case of IMF fund disbursement in mid-March may not come quickly enough to stabilize the Hryvnia.” Oops. Continue reading »

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Feb 24

Well, it’s Not the biggest problem.


This Is The Biggest Problem Facing The World Today: 9 Countries Have Debt-To-GDP Over 300% (ZeroHedge, Feb 23, 2015):

If anyone has stopped to ask just why global central banks are in such a rush to create inflation (but only controlled inflation, not runaway hyperinflation… of course when they fail with the “controlled” part the money paradrop is only a matter of time) over the past 5 years, and have printed over $12 trillion in credit-money since Lehman, the bulk of which has ended up in the stock market, and which for the first time ever are about to monetize all global sovereign debt issuance in 2015, the answer is simple, and can be seen on the chart below.

It also shows the biggest problem facing the world today, namely that at least 9 countries have debt/GDP above 300%, and that a whopping 39% countries have debt-to-GDP of over 100%!

Global debt to gdp Continue reading »

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Jan 25

Spot The Difference: Money Printing, Then And Now (ZeroHedge, Jan 24, 2015):

Hyperinflation-Weimar-USA

h/t @macroymercados

The global central bank balance sheet is even more concerning.

*  *  *

As to the hyperinflation question,

Draghi’s answer is simple: we have now thrown the kitchen sink at the deflation problem and there has been no inflation (he conveniently forgets to mention that the world is now caught in a vicious spiral in which every single central bank is printing money just to export deflation to its peers, with more and more printing necessary each year just to stay in one place). In other words, just because hyperinflation hasn’t materialized so far, it never will.

Or, as Bernanke would say: “Hyperinflation is contained.” Continue reading »

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Dec 26

Alexander-Lukashenko

–  Belarus President Tells “Retailers, Money-Grabbers And Thieves” That Capital Controls “Will Remain Forever” (Zerohedge, Dec 26,  2014):

There is just so much win in the following article describing what is taking place in hyperinflation-ridden Belarus (aka a true Keynesian success story), that we decided to post it in its entirety.

State control of prices in Belarus will remain forever

Belarusian President Alexander Lukashenko has said that state control over prices will remain in place in the republic and urged businesses not to count on a liberalization of the price policy after the scraping of a package of emergency measures from the government and the National Bank. Continue reading »

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Dec 22

Belarus In Full-Blown Hyperinflation Panic - Blocks News, Online Stores; Bans All FX Trading For 2 Years

Belarus In Full-Blown Hyperinflation Panic: Blocks News, Online Stores; Bans All FX Trading For 2 Years (ZeroHedge, Dec 22, 2014)

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Dec 08

Flashback:

Inflation, Hyperinflation and Real Estate (Price Collaps):

And when there is hyperinflation, real estate prices of all sorts—residential, commercial, industrial—go into a free-fall: Their prices crash and burn, completely and utterly.

The Great Hernán P.’s example is exactly what any sensible investor should do, in an inflationary or hyperinflationary period: Preserve capital at all costs, via commodities (… like gold and silver), while keeping a sharp eye out for real estate opportunities. As inflation rises and real estate prices collapse, be prepared to trade the commodities you own for real estate assets selling at depressed prices.

Argentina’s Economic Collapse (Documentary)


Click the play button below to listen to Chris’ interview with Mike Maloney (43m:35s)

Mike Maloney: The Coming Wealth Transfer (Peak Prosperity, Dec 6, 2014):

There’s nowhere to hide (except in hard assets)

History may not repeat but it sure does rhyme. Mike Maloney has studied monetary and financial breakdowns throughout history and concludes that there’s nothing new or different happening this time, except its global and far more massive than any other time in history.

Worse, there are echoes of 1911 where a series of diplomatic blunders and national pride and intransigence combined to create the still largely inexplicable start to WW I.

Chris Martenson: Well it’s global this time, right? This is — there’s nowhere to hide. (…)  What has happened when we’ve tried to print our way to prosperity before? What has happen? Why has it happened and what have been the consequences always been?

Mike Maloney: Whenever you try to print your way to prosperity it transfers well from the masses to the few. The few being the people running the game and then also the hucksters that are very nimble, the con artists and so on. You see these people get rich during the Weimar Hyperinflation. There were quite a few of these fancy salespeople that got rich; they didn’t stay rich once things stabilized again.

But it creates such a topsy turvy world that the normal person that does not know how to operate under these weird economic conditions cannot possibly keep up with things and wealth is transferred away from those people to the people that are very good at observing what’s going on that second and adjusting to it. But the one thing that I see as a constant throughout history is that gold and silver eventually do an accounting of all this — the financial — you know financial finessing that the governments are doing.

And when it does that it — there is a transfer of wealth to the people that own gold and silver. And so — it’s very rare moments in history. This does not happen often. But it’s a great opportunity and I’ve just — you know if you look at gold right now the public’s opinion of gold is quite low because it’s been going down for three years. Continue reading »

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Dec 06

Jim Grant Sums It All Up In 2 Stunning Paragraphs (ZeroHedge, Dec 6, 2014):

What will futurity make of the [so-called] Ph.D. standard [that runs our world]?

Likely it will be even more baffled than we are. Imagine trying to explain the present-day arrangements to your 20-something grandchild a couple of decades hence – after the crash of, say, 2016, that wiped out the youngster’s inheritance and provoked a cenral bank response so heavy-handed as to shatter the confidence even of Wall Street in the Federal reserve’s methods…

I expect you’ll wind up saying something like this: Continue reading »

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Nov 07

VoodooEconomists-futurama

The Magic Of CPI: Watch How Economists Transform A 400% Price Increase Into A 7.1% Decline (ZeroHedge, Nov 6, 2014):

Confused how your cost of living increase is always orders of magnitude above the “inflation” reported by the BLS’ Consumer Price Index? Then prepare for your daily dose of Keynesian epiphany, with this step by step guide from the BLS of how to use the Hedonic Quality Adjustment to turn a 400% price increase into a 7.1% decline.

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Oct 22

How Japanese Hyperinflation Starts (In 1 Chart) (ZeroHedge, Oct 21, 2014):

The Japanese Yen’s real effective exchange rate (REER) has collapsed to the weakest since 1982, according to Mitsubishi UFJ Morgan Stanley Securities. Simply put, REER is a trade-weighted measure of Yen strength (or weakness) against, in this case, 59 trading partners; and as the nation posts an unprecedented 27th straight month of trade deficits [43rd straight month of Seasonally-adjusted trade deficits], Bloomberg reports MUFJ indicates “a structural shift” has taken place.

20141020_hyperinflation-japan

As a reminder, the Real Effective Exchange Rate (REER) is: Continue reading »

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