The world is ready to hyperinflate into gold:

 

From PM Fund Manager Dave Kranzler:

If one can only see value in paper currency terms, one cannot see value at all

Hugo Salinas Price – website link – posted a couple of comments on Stewart Dougherty’s guest post earlier this week. I concluded that his insights needed to be shared on the front of this blog and he gave me permission to edit them together to make them easier to read for everyone.  “I know my comment was complex but I wanted to condense the thoughts I have developed over three decades:”

I would like to take this chance to share a few of my thoughts on this. To me it is pretty clear that the American gold is encumbered. Not because of the usual reasons found on the web but because America defaulted on its gold under the Nixon administration. There are still, many foreign claims on that gold.  If America starts to use that gold officially, the gold vultures, like the bond vulture funds, will be out en masse and with force.  So it is in America’s best interest to ignore that gold – and gold in general.

The world has (finally) realized that a country with the reserve currency is not something a country should want and that the dollar can fail. The danger is that it will fail too soon.

That is why the euro was created for example. The currencies from the individual countries were all issued from the US treasury.  Meaning that if the dollar went the way of the dodo, the European currencies would die with it. Enter the euro, issued from gold [the euro was originally partially backed by gold].  

The gold held by the ECB is priced on a mark to market basis. You can check the website of the ECB, its number one asset is listed as gold and, sadly, gold receivables [meaning that gold is leased out].  Most of the Eurasian landmass followed this initiative [pricing Central Bank gold on a mark to market basis] – for instance, the BRICS countries.  All that is needed a rebalancing of the gold holdings of major countries. Enter China. They had way too little gold and way too many dollars. But last year they also started to mark their gold holdings to market.

Seems to me the world is ready to hyperinflate into gold.  After all, all currencies have already hyperinflated in the financial world.  When the run on real things happens, as a system operator, you don’t want that since a functioning printing press is worth way more than gold. So you want to guide the hyperinflation into a useless metal and use this gold to help equalize the tradeflows. They cannot implement a global political & economic system when things are unstable because it will fail again and soon.  Just as all reserve currencies did since late 1400.  

If I were in the position of the globalists, I would aim for the Roman model. Split the money concept. Currency for spending and settling debts but use gold and silver as a final debt extinguisher.  This would function to prevent the kind of mess the EU countries are now  in. The debts of the south are the assets of the North. This is a recipe for disaster.

Let me elaborate on why I think that the world is ready to hyperinflate in gold terms. The Western public will not hold an asset that goes nowhere, at least in currency terms. The public in the East were never fooled that way. Some  – I think rightly – joke “if one can only see value in paper currency terms, one cannot see value at all”.  I also think gold is wealth and not money. Gold has always been funny in that way. So many people worldwide think of it as money even though its supply tends to dry up as the price rises.

First the Comex will be thrown under the bus to destroy the paper leverage (price suppression) game. Maybe the LBMA as well though I would not be surprised as well if it’s allowed to stay alive. Then the prices can rise and the message will sent:  “gold is the new wealth reserve to balance trade imbalances and then the Western hyperinflation will be killed.”  Central banks lose most of their gold reserves (and that is good) and gold can do what it did for millennia again, settle trade imbalances.

As usual, in historical terms, most of the average people wont have it besides a few grams. But it will be people, not institutions that control it and will help to create a decentralised counterforce to the centralized system we live in that is hopelessly out of touch with reality.

A last thing, courtesy of JS mineset, of the countries that value their gold on a  mark to market basis (a few others may have followed since this graph was created:

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    • Being a billionair is still cool as long as your wealth is not in currrency, but in assets. He’d from billionair to trillionaire, and if he has good businesses, they’ll thrive and see inflation corrected revenue.

    • Hyperinflation is quite capable of reducing a billion in currency to a real value of zero, so, yes, even a billionaire who keeps all of his wealth in that currency would be concerned about it.

      In Germany in 1921, an American businessman ate a great meal at his hotel.  He enjoyed it so much, he tipped the chef a US silver dollar.  The chef called a family meeting to discuss how the family should invest this largess.  At that time, a US silver dollar was worth more than a billion German marks.

      There are similar stories from Zimbabwe and their printing of currency to national oblivion and the horrors that followed thereafter.

      Thankfully, hyperinflation is not common but when it occurs, it can be absolutely devastating, regardless of how much currency one has.  The very definition of hyperinflation is that the people of a nation lose faith in their currency, thereby reducing its value all the way down to zero.  I have seen quadrillions of Zimbabwe dollars for sale at local gun shows as curiosities.  Ever see a $100T bank note?  One can be yours for a US dollar or two.  They make a good reminder that it is not possible to print our way out of debt.

       

  1. Hey Hey Hey Ho Ho Ho

    Off to Zimbabwe we will go

    Worth a billion; or trillionaire?

    Weimar Republic, we are there

    Money turned to toilet paper

    QE Printing Ponzi Caper

    We all ask ‘how we’ll escape here?’

    1 oz gold; $1,000,000; nice!

    I’m worth more than Hugo Price

    Hyper’flation, that’s no sweat

    Flying out on private jet

    We go where ‘flation won’t arrive

    Chill with drinks at local dive

    Enjoy the palms and warming breeze

    While rest of world falls to its knees

    Shiny rocks and golden coins

    Hide them deep; no one purloins

    Buried deep, no fear or care

    Somewhere in the pirate’s lair

    How you front run bad inflation?

    When bankers start to ruin nation

    6,000 years; stacking tradition

    Helps avoid Road to Perdition

    Burma Nave

  2. Hugo Salinas Price made his money in retail sales like Walmart.  He is no economic guru!  Also, padded his wallet by promoting Mexican labor to go to the USA because he paid them $10 a day.  His advice is worthless hogwash!

    • http://www.mining.com/beware-official-us-government-price-for-gold-is-only-4222oz/

      The Official Price of Gold is Only $42.22/oz.
      For many decades now Americans have been allowed to own gold and silver and, despite gold and silver trading in the vicinity of $1200/oz. and $18/oz. respectively, the “official” price of gold is still $42.22 per ounce.

       

      As such, all holders of gold bullion coin should take the “official” price of $42.22 per oz. very seriously when accumulating gold for protection. If not, you could be setting yourself up for a hard lesson in how our government may treat that bullion in the future. If you think that cannot happen read this:

       

      In 1979 The Franklin Mint shipped a substantial number of Krugerrands on TWA. The shipment was lost by TWA, so the Franklin Mint sued to recover its loss at the actual market price of gold. In Franklin Mint Corp. vs. Trans World Airlines, the Supreme Court ruled that gold bullion values in commerce are limited to $42.22 an ounce. That’s all they received!

       

       

    • That is an accurate rendition of history but do note that they sing an entirely different tune whenever someone tries to get paid for their work in gold and silver coins by their employer (so they can claim the face value of the coins as their income) or there is a way to tax sales of gold and silver, such as by calling them commodities and to levy a substantial tax on their sale / profit.

       

  3. Ouch.  That would stank. (re: FleePuny comments)

    Ever so slowly…Ever so imperceptibly…hyperinflation decades in the making…happening, rather than “going to happen”…

    “To-morrow, and to-morrow, and to-morrow,Creeps in this petty pace from day to day,To the last syllable of recorded time;And all our yesterdays have lighted foolsThe way to dusty death. Out, out, brief candle!Life’s but a walking shadow, a poor player,That struts and frets his hour upon the stage,And then is heard no more. It is a taleTold by an idiot, full of sound and fury,Signifying nothing.” ~  Macbeth

  4. this guy knows jack squat. when the fed.gov.(rothschild clan) over printed greenbacks, they created the phony euro as an over flow greenback to the american dollar. backed by gold?????? bulllsheise. so i’m down here in the bluegrass states and left chicago after living there all my life. the last article about inflation is a little late. went to kroger foods the other day. hows 6.00 bucks for a bag of potatoes. back in chicago i can get a 50 pound box for 9 bucks. yea, gas might be 2 bucks a gallon, big deal.try and get your propane tank filled for your grill. they want 2.69 a pound for propane. for a 20 pound tank………….you do the math. back in chicongo i normally pay 17.99…….but i did save money on my car insurance.:)

    • “try and get your propane tank filled for your grill. they want 2.69 a pound for propane.”

      On a recent drive to the beach, I saw places selling propane for $1.99 a gallon.  A gallon of propane weighs about 4.2 lbs.

      Propane is one of those commodity items that becomes a lot cheaper when bought in bulk.  Those living in the country who have a 1,000 or so gallon propane tank to run their refrigerator, furnace, stove, and a few other appliances can buy propane for 1/2 the price, or less, that Joe Schmoe pays for filling his BBQ tank.

       

  5. And again unfortunately NO kudos to Another or FOFOA, who have predicted a Gold-Asset-Standard, demonetized and marked to market for 18 years+ !!! It’s called Freegold and it’s inevitable!

    You have to give it to the real brains here, Mr. Kranzler.

     

  6. At risk of rousing the whiny egg fart salesmen in the comments section who routinely go off on me for being honest, this guy has been saying the same song and dance for years. This article is a remix of the video of him posted last week.

    Like I said, recall when he flew to Greece with Max Keiser at his side to save them via a silver standard. Fast forward years, and we as stackers are in worse shape.

    As I’ve been saying for years ( which has caused attacks from others ) if the collapse is what it’s going to take, and it’s inevitable, then bring it on already.

    Enough FAKE NEWS.

    • You are selling the largest and most sulphur concentrated Fart in the history of Mankind: “there is actually very little manipulation going on”

    • I’m not sure if you ( taco sniffer ) just hit and run on comments, or you can’t understand what I said.

      There is massive manipulation in the markets. What is very little is the organizations that need to be involved in said manipulation. The US Treasury / Federal reserve and the banks acting as their agents. All you need is traders to go stop hunting with printed money – algos and speculators do the rest. The manipulation is huge, no question there.

      I have a new product I’d like to send you in the mail. It’s a rejuvinating mask you wear during your sleep. It has a plastic tube attached to it. Eat 4 pickled eggs before bed, put the mask on and the tube in, and go to sleep. Thank me later. Also, bone up on anti stalking laws.

    • “… if the collapse is what it’s going to take, and it’s inevitable, then bring it on already.”

      Another ice age is also inevitable but it is in no apparent hurry to arrive.  I do understand that your patience is wearing thin these days.  Most of us here are feeling that and aren’t liking it very much.  🙁

       

  7. Buckle Up?    How about Brace For Impact..  We have arrived to our destination, but can’t land because the bankers stole the AIRPORT.  We will just ditch into the mountain.

     

     

     

     

     

  8. Flat farmland would be a good emergency landing area. Once you get off the plane, you can start working for a days wages for a ASE. Time to get to work, no free loaders.. 

    Stacking the shiny, for my future employees.

    • A day’s wages is an ASE?  Holy cow!  That’s really high from a historical perspective where 1/10 oz. of silver was a day’s labor wage for centuries.

      More recently, cowboys in the old west were paid a dollar a day and found.  That’s 3/4 oz. of silver and their food, so about equal to an oz. of silver a day.  Of course, there were diseases, bad water, snakes, Indians, no women, no booze, and rustlers with which to contend.  Maybe that was hazard and deprivation pay added to their actual pay for their cow herding duties?  😉

       

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