chinas big gold rush , page-64

"Maybe you can tell us all when the dreaded hyperinflation will be upon us because I've yet to get an answer to that one."


It's a good point. I remember Turk debating MISH in 2008, saying hyperinflation was just a few months away... he's saying the same thing now if I understand correctly.

Governments have fired their bazookas, stimulated, expanded sovereign debts to the point of default, but consumer borrowing continues to plummet, selling jewellery for food, debt service etc. The comparison between now and the last recession in 2001 is very striking for US consumer credit (chart below).

No doubt we'll see Q.E.2 as leading economic indicators like ECRI and BDI are falling hard again... and gold will probably rise. But I'm not sure it's hyperinflation that gold sees, rather widespread counterparty default. Either way, gold is a good hedge against incompetence.




Courtesy Chris Puplava, FinancialSense.com