launch rocket verticalThe precious metals are lynch pins.  They are nagging and persistent counter-parties to money printing gone wild.
The US currently has a Debt to 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.
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.
When prices begin to fly, the point of no return will be long since passed.

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By Dr. Jeffrey Lewis, Silver-Coin-Investor:

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 begin 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?

 

The Long Wait is Over!  
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  1. The notion that we (the United States) have always been the shining light and the beacon on the hill has been a tough one to dislodge.  It’s what supports the dollar and makes the globalist take-down of America such a stubborn and difficult job.
     
    This is why they released Ed Snowden and his damning of the United States as an out-of-control spying, lying country…  It’s why they are making the US fight all these banker’s wars of belligerance… it’s about destroying the faith in our once-great nation.
     
    In order to have a hyperinflation of a currency, you first have to destroy all faith in that currency.  In order to hyperinflate (destroy) a country (the US) you first have to break the faith the world has in it….  the planes have now flown into the building… the thermite charges have been triggered and are burning furiously…  next, the basement nucs will be set off… and the pyroclastic ash of the solid concrete of our nation will be all that’s left of her in the face of the globalist handiwork,,,,

  2. Aren’t you the gloomy gus Sovereign Economist.  I was thinking of little more than a couple of low yield Stoon-kess—-suit case nuke, ready to cork off just over on Russia’s side of the border. Since it appears that you can come and go depending on which border guards you chose,delivery of the Stoon-kess would be simple.  
    That’s would be a perfect and perfectly nasty false flag.  
    Langley probably has a closet full of them

  3. I think the days of America is #1 have surely past globally. The rest of the world, including some of our friends, are already seeing the US and it’s currency for what it really is…………..a dying beast, floundering before it’s last gasp. The only caveat is that the rest of the world is right there with us. The reason we are still “afloat” is not due to remaining confidence of the system, it is solely due to the manipulation of minds and markets, otherwise we would have already crashed, and we would already be in a truly new world order. This will only happen when “THEY” are ready to pull the rug and not a second sooner.
     
    The manipulation of minds is even more effective than  manipulation of assets but the man behind the curtain is about to be exposed. When that day of great awakening comes, it will be virtually overnight that the world accepts what is actually happening which is the total restructuring of the global system. The only problem is, it will be the 1/10th of 1% that will make up the game rules and we will have absolutely no say in those matters. I know, we already have so little say. The difference will be that now we still think we have some say but after the fact we will know who is truly in control.
     
    If the people of the world wanted to change/stop this future scenario, they certainly could do that if they came together against the globalists but they likely will continue demonizing each other, each other’s race, religion, political party or the sitting president who is never the one in control. Presidents are selected, not elected, and to blame them for our ills is short sighted. We need to blame those who select the presidents before we “elect” them.
     
    If we are to pull through this global catastrophe we need to pull together as one, left, right or center. It’s our only hope of stopping the globalist juggernaut.

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