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DEFLATION THEN HYPERINFLATION
The more powerful market force of deflation will have the upper hand initially because of the size
of the credit market bubble that must be diffused today; approx. $40 trillion. The opposing
force of inflation by the central bank will pale initially in comparison. Their efforts to create yet
another illusion by papering over the credit contraction with $50-100 billion a week (e.g. post 9-
11 & post Katrina) monetization injections will lose to the greater force ($30 trillion bubble) for
A Deflationary Collapse Followed by Hyperinfllation.doc
1-2 years, then will finally take over. At that stage the momentum of inflation will be in its own
Ponzi self-feeding frenzy, thus launching us into the hyperinflationary phase. At some point the
dollar will follow the same fate as countless fiat currencies have in history… It will become
worthless. At that point I am optimistic real money (gold, silver, etc.) will return at center stage
and keep a very short leash on the “Financial Cartel” to prevent them from re-launching another
systemic speculative charade of illusory financial wealth that would lead us yet again down the
same reoccurring path in history.
