Best of the Week
Most Popular
1.The Trump Reset, US Empire's Coming Economic, Cyber and Military War With China (2/2) - Nadeem_Walayat
2.Now Is the Time to Buy Gold - 5th Jan 17 - John Grandits
3.CIA Planning Rogue President Donald Trump Assassination? Elites "Manchurian Candidate" Plan B - Nadeem_Walayat
4.The Trump Reset - Regime Change, Russia the Over Hyped Fake News SuperPower (Part1) - Nadeem_Walayat
5.Most Popular Financial Markets Analysis of 2016 - Stock Market Crash Postponed Again - Nadeem_Walayat
6.No UK House Prices Brexit Crash 2016 Despite London Weakness, Forecast 2017 - Nadeem_Walayat
7.President Trump Understands the NSA, CIA... LIE, America's Intelligence Agencies Crime Syndicate! -Nadeem_Walayat
8.President Donald Trump's 2017 New Year Message, BBC Fake News, Was 2016 a Dream? - Nadeem_Walayat
9.Major Stocks Bear Market Still Looms - Zeal_LLC
10.Biased 2017 Forecasts - Debt, Housing and Stock Market (1/2) - James_Quinn
Last 7 days
United States Common Sense - 2017 - 23rd Jan 17
Is Dow 20,000 a Bridge Too Far? - 23rd Jan 17
The New Gold Rush Of 2017! - 23rd Jan 17
HBO HOMELAND Bet on HIllary Clinton Winning US Election and LOST - 23rd Jan 17
Stock Market New Highs For 2017? Yes, But When Do I Enter? - 22nd Jan 17
Active vs Passive Investing: And the Winner Is ... - 22nd Jan 17
The Epidemic of Bad Ideas - 22nd Jan 17
Gold Futures Prices Looking Bullish - 22nd Jan 17
Time for Crude Oil Price Drop below $50? - 21st Jan 17
AI and Robotics - We Are All Low-Skilled Workers Now - 21st Jan 17
The Trump RESET Starts on US Presidential Inauguration Day 2017 - What to Expect - 20th Jan 17
Will the CIA Assassinate Rogue President Donald Trump Like JFK? - 19th Jan 17
Bonds, Dollar, Stocks, Gold, Silver Major Markets at Turning Points - 19th Jan 17
Populism; the Danger? What About Debt? - 19th Jan 17
Gold Price 50-DMA Breakout - 19th Jan 17
Turkey, 'Axis of Gold' and End of US Dollar Hegemony - 19th Jan 17
The Most Important Market Chart on the Planet - 19th Jan 17
Trump Deficits Will Be Huge - 19th Jan 17
Stock Market Trading Patience Pays Off with CHK Using Momentum Reversals - 19th Jan 17
Gold - How to "Buy Low and Sell High" Like a Pro - 19th Jan 17
State of the Global Stock, Financial and Commodity Markets Report 2017 - 19th Jan 17
The Hunt for Russia's Next Enemy - 18th Jan 17
Returning Gold Bulls - 18th Jan 17
Biotech Breakthrough Could Create A $11.4 Trillion Opportunity - 18th Jan 17
Bitcoin and Gold - Outlook, Volatility and Safe Haven Diversification - 17th Jan 17
Stock Market Uptrend on Borrowed Time - 17th Jan 17
The One Stock to Retire On - 17th Jan 17
Trump anti-Communist Counter Revolution - 17th Jan 17
US Stock Market Update as the Trump Inauguration Approaches - 17th Jan 17
The American Crisis - Common Sense 2017 - 17th Jan 17
Obama Leaves, Hope Arrives, Will Stupid Stay? - 17th Jan 17
Damage Inflicted by Precious Metals Manipulation Is in the “Multi Billions” - Keith Neumeyer - 17th Jan 17
Gold Price Forecast 2017 Update - Video - 17th Jan 17
The Story of the U.S. Regime Change Plan in the Philippines - 16th Jan 17
Gold Price 2017 Trending Towards $1375 as Forecast - 16th Jan 17
'Deep State' CIA Director States We are Not NAZI's, Warns Trump Does Not Understand Russian Threat - 15th Jan 17
UK House Prices Forecast 2017 - Crash or Bull Market? - Video - 15th Jan 17

Free Instant Analysis

Free Instant Technical Analysis


Market Oracle FREE Newsletter

State of Global Markets 2017 - Report

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

© 2005-2016 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

Catching a Falling Financial Knife