Monetary Hyper-Inflation Is Already In Progress (Updated)

Monetary Hyper-Inflation Is Already In Progress

I would say that (regrettably) most of the U.S. and global public is blatantly ignorant of the nature and dangers of “hyper-inflation” when it occurs. Worse yet, most have no idea of its cause. This is a dangerous fact, and let me take just a moment to explain what it is, why it is dangerous, illegal, and thus unbiblical, while utilizing both a very alarming chart and video embed in the process. Then I will link you to a few relevant resources that will give you the “big picture” of what is not just going to happen…but what is already in progress in the U.S. monetary system and global economy.

The Term:

First, hyperinflation (which term does NOT always need the hyphen, and from here on will not include it) is defined by in-part as:

A very high level of inflation that tends to result in the breakdown of the monetary system, the hoarding of goods, and difficulty in achieving real economic growth. The classic case of hyperinflation occurred in Germany during the 1920s. Hyperinflation, which tends to motivate people to own real goods, adversely affects security prices.

However, the above definition—though the common understanding—is VERY misleading. It focuses more on the felt effects or perceived results of monetary hyperinflation and not its true cause. This common “definition” emphasizes the sudden explosion in prices of goods and services as the currency collapses in value. However, a better definition would be:

Hyperinflation: The massive inflation (increase) of the supply (quantity) of a currency by a central bank or government, which debases the per-unit value of the currency.

Or in other words, hyperinflation of the money supply is “turning on the printing presses” and increasing the amount of money in circulation to such a degree, that supply/demand dynamics debase (devalue) each unit of the currency at a hyper-deflationary pace. The more money in circulation, the less each unit of money is worth.

The eventual result of the hyperinflation of the money supply is that the markets begin to realize the flood of currency, and then adapt their prices accordingly. This eventually results in the hyperinflation of prices wherein “street prices” can double and even triple (or more) within a single day for goods and services in the marketplace.   –Rich

As bizzare as the above scenario might sound to the average person unfamiliar with monetary history, the fact is that this very set of circumstances has happened MANY times within the Twentieth Century in localized areas within every major section of the globe (Europe, Asia, the Americas, etc.). It is even occurring NOW in places of the world such as Zimbabwe. (I will give you a few links in a moment to give you some examples.)

Nevertheless, it is a fact that hyperinflation has never occurred before on a GLOBAL scale—but it is about to do so, and the process has already begun.

Broken Laws:

The Bible, of course, condemns such devaluation of the money supply as it causes tremendous harm to both individuals and society as a whole:

You shall not have in your bag true and false weights, a large and a small. (Deuteronomy 25:13, AMP)

Diverse weights are an abomination to the LORD, and dishonest scales are not good. (Proverbs 20:23, NKJV)

Those who are behind this practice are using “false weights” as they perform their crimes. I call these things “crimes” because they are in violation of God’s law, as well as all earthly moral, “natural”, and common laws. In the United States, it is also in violation of the U.S. Constitution—which is the “supreme law of the land”—making it a criminal offense of “constitutional proportions” within that jurisdiction.

I state that they use “false weights” because the ones who get to use the new money FIRST (i.e. those running the proverbial “printing presses”) get to use the money at TODAY’S value. Those who are further down the line find the money has already debased as the market has adjusted to the increase in the money supply, and thus, worth a lower value per unit. So Deuteronomy’s edict above is clearly violated in that the one with “the bag” has “unbalanced” the proverbial scales. There is “one large weight” to the money when they printed the new dollars, and one “small weight” to the dollar’s value once it gets into their hands of the rest of society.

Who are these criminals? Well, you can answer that with another question: Who determines the money supply? Generally, it is the central bankers in cahoots with the government. In the United States, that would be the Federal Reserve (which is really a private institution, and no more a part of the government than the shipping company Federal Express) and the U.S. Federal Government. So then who is to blame for the consequent hyperinflation in prices once the market reacts? The same criminals who caused the monetary supply hyperinflation.

What these criminals do, however is attempt to pass the blame off on the “free market” and “forces beyond their control.” They will even try to convince you that they are trying to “alleviate the crisis” and portray themselves as the proverbial “knights in shinning armor” riding forth to slay the “inflation dragon.” However, the OPPOSITE is actually true—they caused the hyperinflation problem, and its terrible results on society. So their propaganda is no more than “smoke and mirrors” intended to camouflage their guilt and self-serving agendas. The reality is that they used “false weights” for their own profit and gain, and destroyed the U.S. currency in the process.

Most people do not realize how serious a problem this really is. However, when it costs a million dollars or more for a single loaf of bread (as it did in Weimar Germany back in 1923, and does in Zimbabwe today) they will realize only too late what a tragic affect on society the greed of these culprits has caused. But do not fear, my friend, you are NOW being properly forewarned—and that is the first step to becoming properly prepared… so please continue reading…

Honest Scales:

The reality is: In a truly free market, with proper and honest “weights and measures” and a commodity-based monetary system (i.e. physical gold, silver, semi-precious metals like copper, and/or paper-money 100% redeemable for either gold or silver) hyperinflation COULD NOT happen at all:

  • The limitation of the money-supply to only the amounts of PURE gold, silver, and semi-precious metal money in circulation, would prevent monetary hyperinflation. (Note: the pure content of the commodity within the coinage would have to be accurately marked, and protected under penalty of law, as well. Otherwise, the government could debase the currency by debasing the coinage with baser metals and reducing their purity, as the ancient Roman government loved to do. Better yet, keep coinage a private industry and get the government out of the money-business completely, except to ensure accuracy of purity claims by private mints and bullion bankers.) Such limitations prevent the government and central bank from “turning on the printing presses” and oversupplying the monetary system. If commodity-backed and fully redeemable paper money is also used (e.g. a gold or silver “standard” monetary system), then the printing of “paper” is limited by the amount of commodity in the warehouse to back it (as long as the laws are enforced, of course).
  • The enforcement of the law of “honest weights and measures” throughout society would prevent fraud, and thus further protect the markets from criminal activity that could cause shortages and/or inflationary pressures. This l would include the requirement of 100% bank reserves for customer deposits, because banks can artificially inflate even a commodity-backed monetary system through fractional reserve banking. If we require the banks to keep 100% of their depositor’s money in the vault (since a “demand deposit” is always still the property of the depositor) then the banks cannot expand the effective monetary system through “fiduciary media” in the form of bank loans, checks, and “digital” transactions.

(Note: To learn more about how fractional reserve banking can expand the money supply regardless of the actions of government and central banks, download this chapter from Jesus Huerta de Soto’s outstanding book, Money, Bank Credit, and Economic Cycles. The entire book is available in both English and Spanish at For the English version, click “libros” in the left menu, then “money…” when the submenu appears. All chapters are then listed for individual download in PDF format.)

So in effect—though they pass “laws” to try to “legalize” their immoral and unbiblical activities—the actions of the government and central banks are in violation of both God’s laws and all sound legal principles. (Note: Actually, this includes all bankers in general because of credit expansion practices, but most bankers with in society fail to realize the illegal and immoral nature of their daily activities). These criminals “print money” and spend it at the current market value, and thereby increase the money in circulation, which causes the unit value of money to diminish for everyone else in society. Thus, the bankers and government profit at the expense of everyone “lower on the food chain” within the financial system and society as a whole. Thus we can clearly state:

Hyperinflation is a crime propagated upon a nation by its government and bankers (especially the bankers of the central bank), and NOT an accidental or unavoidable consequence of “market forces” as they would have you believe.

Further, the most concerning fact concerning hyperinflation is this: It has already begun in the United States of America, and will soon spread throughout the world. Do you doubt that? Let’s look at the facts…

A Crime in Progress:

Remember in the above definition that hyperinflation begins FIRST in the monetary supply, then when the markets realize what is going on and confidence in the currency erodes, it begins to manifest SECOND in the marketplace by a rapid increase in the prices of goods and services. With that in mind, look at the following chart produced by the St. Louis Federal Reserve concerning the Adjusted Monetary Base (i.e. supply):

Notice the near-prefect vertical line to the far right of the graph. That is the explosion in the money supply since only September, 2008—which exceeds anything that has ever been done in the history of the FED since its inception back in 1913. Also, do you notice any similarity between the above monetary-supply chart and the following monetary-supply chart from the most infamous hyperinflation of the Twentieth Century—Weimar Germany in the 1920s?


To put the above chart into an understandable light, by late 1923 it took 200 BILLION (with a “B”) German marks to buy a single loaf of bread at the bakery.

Since the monetary supply has ALREADY begun to hyperinflate, it is only a matter of time before the markets loose confidence in the U.S. dollar and prices begin to hyperinflate as well.

This is a short-fuse time-bomb ticking within the U.S. and global economy…and about to explode. Moreover, the U.S. government and Federal Reserve (and the individuals running both) are FULLY to blame.

More Research:

Now for more clarity regarding this topic, I recommend the following links where you can find additional data:

Be informed, avail yourself also of the data within the right-most Financial Column found on every page of this blog, and do NOT be afraid. Rather, keep in mind the following VERY important truth:

This is an economic time for the properly informed and positioned to PROFIT beyond their wildest imaginations, while those who stumble forward without taking these issues to heart will suffer tremendously.

The Bible puts it this way:

A prudent man sees the evil and hides himself, but the simple pass on and are punished [with suffering]. (Proverbs 22:3, AMP)

The key is to take these things seriously, to do your due diligence, and get in position to profit rather than to suffer.

Again: Hyperinflation in the United States has already begun in the monetary supply, and will soon begin in the prices of the marketplace. Since the U.S. dollar is the “world’s reserve currency” and sits as reserves backing most of the other paper currencies of the world, hyperinflation is likely to spread rapidly on a global scale. Gold and silver is your best and most secure way of protecting your savings and preparing for the economic tsunami that is soon to come.

Stay informed, and get prepared.

Lastly, please post your comments below.

In Jesus,



Forty to One: The ‘Odds’ Favor Gold and Silver

THERE IS A MYSTERIOUS DYNAMIC at work in Western gold and silver markets in that “paper” precious metals seem at times to be falling in price, while “street” prices for in-your-hand bullion is constantly rising. The real fact of the matter is that the “spot” prices reported on the Internet and elsewhere are regarding bullion futures contracts, and not actual physical gold and silver. Those prices do NOT include additional costs like fabrication and delivery… and they certainly do NOT contain the “premiums” being charged on the street for the real thing.

The people on the commodities exchanges (from where we get “spot” pricing of gold and silver) are simply trading paper around. Consequently, these figures are misleading—especially with Western central banks manipulating the markets (with the aid of their cohorts) in order to prop up their worthless currencies. Even though an increasing number of investors are requiring physical delivery of the bullion their “paper” contracts promise, the exchange rates still reflect fictional pricing dynamics at best.

In the Western nations: On the “street” there are shortages of both gold and silver bullion in any form, but especially coins, ingots, and small bars.

Therefore, dealers in the West are finding that they have FORTY buyers for every ONE seller who is willing to part with their precious metals in exchange for declining paper currencies (see the article further below).

Meanwhile, in other parts of the world like the Orient and Middle East, gold is readily available in shops. As the following picture (sent me by one of my friends) of a “gold souk” in Dubai clearly shows, the “on the street shortages” are a Western phenomena alone as the Western economies collapse themselves from their own debt weights:

Gold in abundant display within a Dubai shop window

Gold in abundant display within a Dubai shop window


Gotta Have It

So with the shortages here in the Western nations as people scramble to acquire real money in the form of gold and silver, the dealers are tacking higher and higher premiums on the REAL gold and silver to reflect the true supply/demand dynamics they see every day in their shops—even while the “paper” traders play games within the commodities markets.

But remember: When the dollar and Western economies collapse, “paper” bullion with be worth no more than what their then-undeliverable promises are printed on.

The only real protection against the Economic Tsunami that is to come is physical gold and silver in hand. Period. Those wise enough to realize the biblical and historical truth of that statement will well-position themselves to be recipients of the coming wealth transfer. Those that do NOT, will find themselves suffering the loss that the wise then inherit. (Hint: Proverbs recommends you be counted among the wise, and not among the foolish who inherit destruction.)

Moreover: To confirm what I have stated above and in other articles, consider the data revealed in the following article excerpt about what is happening today in the gold and silver markets. I will pick up below it with my final comments and recommendations:

The New Gold Rush: Supply of Coins Tight at Tucson Stores

By Dan Sorenson
Arizona Daily Star, Tucson
Sunday, November 2, 2008

The price of futures contracts for gold surged to more than $1,000 per ounce earlier this year, then dropped back before surging again as the financial crisis rocked stock markets in September. Then the price of gold futures started slipping again.

In October, Bloomberg News reported, the price dropped 18 percent, the most it has in a single month since 1980. Gold for December delivery closed at $718.20 an ounce Friday on the New York Mercantile Exchange.

Your college Econ 101 course may not help you understand the latest gold coin rush.

Banks have been on wobbly knees, the stock market has been plunging, and 401(k)s are as deflated and sad as four-day-old party balloons.

But, oddly, gold has been both falling in price and in short supply for those looking for a safe haven during the stock market storm. Some Tucson dealers say gold coins are scarce at best, even as gold—and silver—prices are falling.

There is even more complexity within that scenario, local dealers say.

Retail gold coins generally sell for the current price of the metal they contain, plus a “premium”—the dealer’s fee—on each coin. Of late, the premiums have risen significantly to reflect the shortage of supply of some denominations, the dealers say.

“I get 10 to 20 calls a day, ‘Do you have any gold or silver?’ We don’t have any, and we can’t get any,” said Peter Spooner, a coin expert at American Stamp & Coin, 7225 N. Oracle Road.

“There are people who are selling their stocks to get into gold and silver because they fear we are going into a tremendous depression,” said Spooner. Yet, he noted, the “price of paper (futures contract) gold is dropping while the price of owning actual hold-in-my-hand gold is going up” when the seller’s premium is added.

Historically, it would be cheaper to buy an ounce of gold in one coin than to buy an ounce as four quarter-ounce coins. But the price for an ounce of gold is actually cheaper if you buy it as four quarter-ounce coins than in a single 1-ounce coin—if you could find one, said Brett Sadovnick, owner of Tucson Coin & Autograph, 6470 N. Oracle Road.

In this case, a classical supply-and-demand situation is at work: There’s more demand for the 1-ounce coins than the quarter-ounce and other smaller coins, so it’s driven up the price of the 1-ounce coins.


Buyers Might Be Newcomers

Sadovnick isn’t quite sure why buyers are fixated on the 1-ounce coins. Gold is gold, purity being equal.

It could be that the buyers driving the demand for the 1-ounce American Eagle coins are newcomers fleeing the wild uncertainty of the stock market for the relative calm of the world’s longtime favorite precious metal. Maybe they feel better about owning the hefty full-ounce American Eagle, rather than a handful of smaller gold coins—half-, quarter-, or tenth-ounce — that weigh just as much. Sadovnick isn’t sure.

“I’ve been a coin dealer in Tucson since 1998, a professional since 1974. I haven’t seen a situation quite like this,” said Sadovnick. Not even the crazy precious metals roller-coaster days of early 1980—when gold hit $850 an ounce for one day—compares, Sadovnick said.
And it’s not just gold, he said.

“I placed an order a month ago, 1,000 1-ounce silver bars. I paid him spot (the spot price), plus $2.50 an ounce premium,” Sadovnick said. That order might not arrive until January.

“Three months ago I could have bought it from them for the price of silver, plus $1.50 an ounce, and I would have had delivery in a few days.”

Even Jim Ganem, owner of the venerable Arizona Stamp & Coin, 4668 E. Speedway, is baffled.

The shop is the only Tucson dealer mentioned on the U.S. Mint’s Web site as dealers of American Eagle coins, and Ganem says he can’t get any Eagles, or anything regularly. He said the U.S. Mint sent out a notice saying it isn’t making the coins because even they can’t get the gold blanks to stamp.


40 Buyers to One Seller

Ganem said hedge funds are dumping billions of dollars worth of gold contracts they hold, driving down the price of gold. But to actually get gold, not just a contract, buyers are having to pay a premium—a higher premium than he can recall in the past.

Some of those contract holders are asking for the gold they represent, instead of just trading in the paper. But that gold is disappearing in an instant on the spot market, said Ganem. He said he gets a few chances a day to buy gold that becomes available, but that it disappears in a matter of minutes.

“Typically,” he said, “we’re running 40 buyers to one seller right now coming into the store to purchase. People don’t want to be in the stocks, real estate, and they don’t trust the banks—three typical havens for large amounts of money. The other one is metal.”

One would think the skidding stock market and real estate decline would be driving up gold and silver prices. And while it did initially, in September, the price of precious-metal futures plunged in October.

An industry expert in Phoenix said the gold market isn’t behaving in a traditional manner.

David Henry of Arizona Coin Exchange Inc. in Phoenix is a wholesaler who sells to coin and precious metals retailers. He said most people who buy paper gold, contracts, never physically possess the gold, choosing instead to resell the contracts, hopefully for more than it cost them.

“You can get it, physically, but it’s complicated,” Henry said.

Physically possessing gold is an entirely different mechanism, Henry said, something that is done for security—a way to safely hold value, often for a very long time.

Unfortunately, he said, this is an occasion for a “Perfect Storm” scenario.

The price isn’t high enough to bring sellers into the front door of coin and precious metal shops, and the main source of new gold, the federal government, can’t deliver.
Spooner said the vagaries of the current gold market don’t change his view of gold.

“I don’t present gold as an investment,” said Spooner. “Buying a half- to 1-ounce piece of gold every month is like insurance… like portfolio insurance. In economic turmoil, it’s a flight to safety.”


Decline in Gold Futures

The price of futures contracts for gold surged to more than $1,000 per ounce earlier this year, then dropped back before surging again as the financial crisis rocked stock markets in September. Then the price of gold futures started slipping again.

In October, Bloomberg News reported, the price dropped 18 percent, the most it has in a single month since 1980. Gold for December delivery closed at $718.20 an ounce Friday on the New York Mercantile Exchange.

As you see in the article above, these artificially low prices on the commodities exchanges are merely illusions. So the key is to obtain gold and silver anywhere you can while the prices are relatively low (though dealer premiums are so high) while you still are able to do so. Once the dollar collapses nobody will part with their silver/gold… except when they may be buying up all your worldly possessions in return.

So let me be blunt: Buy gold and silver bullion in any form—but especially coin form—anywhere you can get your hands on it—while you still can. You can move your IRAs and 401(k) offshore outside of the USA and UK into gold and silver (see my note at the bottom of this article about AFE). Even sell your sports gear, Longaberger-basket collection, jet ski—and even a few of your TVs and iPods if you have too—to get liquid with your money, and then buy all the gold and silver you can obtain. And let me add: Do so VERY QUICKLY.

As I have said before in other blog posts, I also highly recommend you take a firm look at Joseph Wealth Systems (JWS) as a reliable supply source for gold bullion coinage. While the dealers in the Western nations (like the ones in the article above) are desperate for precious metals coinage to meet the phenomenal demand, JWS is reporting a fully-fluid coin supply that is still abundant in the face of the increasing demand. Their prices for their gold shekels and quarter shekels are also very competitive with the increasingly high-premium coin prices being found through other dealers (and again, you can actually GET coins!).

Add to this fact that you can become an online gold coin merchant yourself (if you so choose) and you can readily understand how JWS can be a very lucrative source for your gold coin acquisitions. (Note: JWS does not offer silver coins at this time, so you will simply have to get silver anywhere you can find it.)

Lastly, I highly recommend you study the information I provided for you in my blog article God’s Money and Private Coinage. That article will help you to see both the biblical/historical aspects of owning gold and silver as bona fide REAL money, while also providing you an understanding (through an excerpt from Murray Rothbard wise counsel) in the benefits of owning privately minted coins.

God bless you as you earnestly seek God’s Wisdom… and not merely the gold and silver He created.

In Jesus (Yeshua),