Best of the Week
Most Popular
1. Climate Change Mass Extinction - Birds, Bees and Bugs: Going Going Gone - Richard_Mills
2.A Purrrfect Gold Price Setup! - Peter_Degraaf
3.Who Finances America's Borrowing? Recession Indicator for Independent Thinkers Part 2 - F_F_Wiley
4.America’s One-sided Domestic Financial War - Raymond_Matison
5.Gold Price Summer Doldrums - Zeal_LLC
6.Two Key Events Will Unleash Gold - Jim_Willie_CB
7.Billionaire Schools Teacher in NAFTA Trade Talks - Richard_Mills
8.Get Out Of Crypto Cannabis Bubble Before It Pops and Move Into Bargain Basement Miners - Jeb_Handwerger
9.Stock Market Could Pullback for 1-2 weeks, But Medium Term Bullish - Troy_Bombardia
10.G7 Chaos, Central Banks and US Fed Will Drive Stock Prices This Week - Chris_Vermeulen
Last 7 days
Could A Big Move In The Global Stock Markets Be Setting Up? - 25th Jun 18
Soybean Price Hits 9 Year Low Due to Trade War - 24th Jun 18
Small Cap Stocks, Technology and Pharma To Drive A Renewed Market Rally - 24th Jun 18
Gerald Celente: Why You Still Need Guns, Gold, and a Getaway Plan... - 23rd Jun 18
Cheap Gold Stocks Bottom Basing - 23rd Jun 18
A Trade War Won’t Be Good for the US Dollar - 23rd Jun 18
SPX/Gold, Long-term Yields & Yield Curve 3 Amigos Update - 22nd Jun 18
Gold - How Long Can This Last? - 22nd Jun 18
Dow Has Fallen 8 days in a Row. Medium-long Term Bullish for Stocks - 22nd Jun 18
Trouble Spotting Market Trends? This Can Help - 22nd Jun 18
Financial Markets Analysis and Trend Forecasts 2018 - A Message from Nadeem Walayat - 21st Jun 18
SPX Bouncing Above Support - 21st Jun 18
Things You Need To Know If You Want To Invest In Bitcoin Now - 21st Jun 18
The NASDAQ’s Outperformance vs. the Dow is Very Bullish - 21st Jun 18
Warning All Investors: Global Stock Market Are Shifting Away From US Price Correlation - 20th Jun 18
Gold GLD ETF Update… Breakdown ? - 20th Jun 18
Short-term Turnaround in Bitcoin Might Not Be What You Think - 19th Jun 18
Stock Market’s Short Term Downside Will be Limited - 19th Jun 18
Natural Gas Setup for 32% Move in UGAZ Fund - 19th Jun 18
Magnus Collective To Empower Automation And Artificial Intelligence - 19th Jun 18
Trump A Bull in a China Shop - 19th Jun 18
Minor Car Accident! What Happens After You Report Your Accident to Your Insurer - 19th Jun 18
US Majors Flush Out A Major Pivot Low and What’s Next - 18th Jun 18
Cocoa Commodities Trading Analysis - 18th Jun 18
Stock Market Consolidating in an Uptrend - 18th Jun 18
Russell Has Gone Up 7 Weeks in a Row. EXTREMELY Bullish for Stocks - 18th Jun 18
What Happens Next to Stocks when Tech Massively Outperforms Utilities and Consumer Staples - 18th Jun 18
The Trillion Dollar Market You’ve Never Heard Of - 18th Jun 18
The Corruption of Capitalism - 17th Jun 18
North Korea, Trade Wars, Precious Metals and Bitcoin - 17th Jun 18
Climate Change and Fish Stocks – Burning Oxygen! - 17th Jun 18
A $1,180 Ticket to NEW Trading Opportunities, FREE! - 16th Jun 18
Gold Bullish on Fed Interest Rate Hike - 16th Jun 18
Respite for Bitcoin Traders Might Be Deceptive - 16th Jun 18

Market Oracle FREE Newsletter

5 "Tells" that the Stock Markets Are About to Reverse

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

© 2005-2018 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

6 Critical Money Making Rules