Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
Stocks, Bitcoin and Crypto Markets Breaking Bad on Donald Trump Pump - 21st Nov 24
Gold Price To Re-Test $2,700 - 21st Nov 24
Stock Market Sentiment Speaks: This Is My Strong Warning To You - 21st Nov 24
Financial Crisis 2025 - This is Going to Shock People! - 21st Nov 24
Dubai Deluge - AI Tech Stocks Earnings Correction Opportunities - 18th Nov 24
Why President Trump Has NO Real Power - Deep State Military Industrial Complex - 8th Nov 24
Social Grant Increases and Serge Belamant Amid South Africa's New Political Landscape - 8th Nov 24
Is Forex Worth It? - 8th Nov 24
Nvidia Numero Uno in Count Down to President Donald Pump Election Victory - 5th Nov 24
Trump or Harris - Who Wins US Presidential Election 2024 Forecast Prediction - 5th Nov 24
Stock Market Brief in Count Down to US Election Result 2024 - 3rd Nov 24
Gold Stocks’ Winter Rally 2024 - 3rd Nov 24
Why Countdown to U.S. Recession is Underway - 3rd Nov 24
Stock Market Trend Forecast to Jan 2025 - 2nd Nov 24
President Donald PUMP Forecast to Win US Presidential Election 2024 - 1st Nov 24
At These Levels, Buying Silver Is Like Getting It At $5 In 2003 - 28th Oct 24
Nvidia Numero Uno Selling Shovels in the AI Gold Rush - 28th Oct 24
The Future of Online Casinos - 28th Oct 24
Panic in the Air As Stock Market Correction Delivers Deep Opps in AI Tech Stocks - 27th Oct 24
Stocks, Bitcoin, Crypto's Counting Down to President Donald Pump! - 27th Oct 24
UK Budget 2024 - What to do Before 30th Oct - Pensions and ISA's - 27th Oct 24
7 Days of Crypto Opportunities Starts NOW - 27th Oct 24
The Power Law in Venture Capital: How Visionary Investors Like Yuri Milner Have Shaped the Future - 27th Oct 24
This Points To Significantly Higher Silver Prices - 27th Oct 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Gold and Silver - From Price Manipulation to Hyperinflation

Commodities / Gold and Silver 2014 Aug 07, 2014 - 06:23 PM GMT

By: Dr_Jeff_Lewis

Commodities The precious metals are lynch pins. They are nagging and persistent counter-parties to money printing gone wild.

It's been this way for as long as commerce was semi-civilized. (Though given the amount of financial fraud, violence, and chaos in the world, the term "civilized" might need to be reconsidered)...


When prices began to fly, the point of no return will be long since passed.

I believe we are living in limbo at the moment. We've passed the point of return, but have yet to move into the next (collective) phase.

If you look at conservative (academic) standards and assessments of hyperinflation, money velocity is the only variable left; the last variable needed to push us over the dividing edge between a failed currency and outright collapse.

We have Debt GDP well north of 100%. That's always a part of each hyperinflation.

Real (GAAP-derived) accounting puts ($6 Trillion) deficits at least five times tax revenue in the U.S.

Most modern hyperinflations started with only 2x deficit revenue.

We have falling real gross national product (and GDP). (GNP is more accurate.)

Jobs, energy use, and real inflation are major (misery) indicators that we are in massive decline.

The only variable left to ignite is money velocity.

While it appears to be in massive decline - it's actually tough to gauge, given the decline in participation across the economy. In other words, money velocity has an underground component that cannot accurately be measured.

Hyperinflation is a process. It can play out over years. Based on the above, we are probably in it now, though the final collapse will happen overnight.

If we go back to 1980's methodology, inflation is well north of 8%.

Compound that figure over a few years, and we're talking about scary numbers - boiling water.

Everyone can see energy and food inflation.

Maybe college tuition and health care costs don't cut across a large enough cross section, but they are significant.

And of course, the Fed is now the major buyer of U.S. debt...

Not a week goes by without another nail in the dollar reserve coffin. Anywhere from 20 to 100 sovereign are officially moving away from the U.S. dollar.

And the drum-beats of war continue to echo an underlying currency conflict and race to debase.

I remember having a conversation with a very wealthy patient of mine sometime late last year.

He is/was a well-respected investor. Very much accustomed to people asking him for his opinion of economic/financial matters.

Most people want to know about stocks...

I never ask directly. I kind of know the answer.

Nonetheless, I am always probing, testing. I'm not supposed to know what the heck is going on.

He launched into an unsolicited mini-lecture about how everywhere you go in the world -people still look up to the U.S.

They want to be just like us. They would rather move here than stay where they are.

I get what he is saying. And it may be true - to a degree.

But it's changing. It has been changing. Most people are too distracted to see it.

He can't see it, because his world is better.

And the fact that it came from a person like him, at a time like now - with such confidence and conviction.

I remember thinking, "Wow. That's sobering."

One wonders: Could really be it?

For more articles like this, and/or for a breath of fresh silver market reality amidst the stench of denial and technically meaningless short term price obsessed madness, check out http://www.silver-coin-investor.com

By Dr. Jeff Lewis

    Dr. Jeffrey Lewis, in addition to running a busy medical practice, is the editor of Silver-Coin-Investor.com

    Copyright © 2014 Dr. Jeff Lewis- All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Dr. Jeff Lewis Archive

© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in