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.
First, hyperinflation (which term does NOT always need the hyphen, and from here on will not include it) is defined by Dictionary.com 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.
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…
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 www.jesushuertadesoto.com. 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.
Now for more clarity regarding this topic, I recommend the following links where you can find additional data:
- Modern Hyperinflation in Zimbabwe (A very sobering BBC overview from July, 2007. Worse yet, the country’s alarming economic numbers are actually more extreme today than when this article explained them.)
- The Nightmare German Inflation (An excellent summary of the 1923 German hyperinflation experience in Weimar Germany. Most importantly, it tells you who PROFITED and WHY during that time.)
- Mises.org Articles (A list of various articles found on the Ludwig von Mises Institute website related to this topic.)
- My own RichVermillion.com articles regarding money and the pending U.S. economic collapse
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.