When can we know when US dollar price inflation turns into hyperinflation? By monitoring the single most important chart for just that. Lynette explains…
In my opinion, the chart on Monetary Velocity from the Federal Reserve, is the most important chart because it can give us the early warning of hyperinflation.
I say this because it’s really a measure of the speed that money changes hands and how many hands the same money passes through. In this way, it’s a gauge of inflation, because if people believe prices are going up, they’re more likely to buy it today, using debt, to avoid paying higher prices in the future.
Gold and silver are the shields to protect your wealth from burning up. “In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. There is no safe store of value.” Alan Greenspan, Fed Chair from 1987 through 2006.