Hyperinflation Is Here


Authored by Alasdair Macleod via GoldMoney.com,

… This article defines hyperinflation in simple terms, making it clear that most, if not all governments have already committed their unbacked currencies to destruction by hyperinflation. The evidence is now becoming plain to see.

The phenomenon is driven by the excess of government spending over tax receipts, which has already spiralled out of control in the US and elsewhere. The first round of the coronavirus has only served to make the problem more obvious to those who had already understood that the expansionary phase of the bank credit cycle was coming to an end, and by combining with the economic consequences of the trade tariff war between China and America we are condemned to a repeat of the conditions that led to the Wall Street crash of 1929—32.

Monetary Distortions Of GDP In 2021

Comment by tonytran2015: Fiat currencies are valued by government issuers as the latter never run out of them. Insisting on no inflation with fiat currencies is like asking for fairness in the wilderness. Any worthy economist must know how to do measurements using ever shrinking rulers.


Monetary Distortions Of GDP In 2021 Tyler Durden Mon, 10/12/2020 – 18:40 Authored by Alasdair Macleod via GoldMoney.com, This article explains the effect of monetary inflation on GDP. Nominal GDP is directly inflated by additional money and credit, so GDP growth is simply a reflection of additional money in the economy. It gives no clue…

Wells Fargo: Gold Bull Run Signals Growing “Lack Of Trust” In Monetary System


Authored by Michael Maharrey via SchiffGold.com,

It’s easier to understand gold’s record-breaking move up if you look at it from the other side of the equation. The dollar is now at its all-time low compared to gold. In simple terms, the dollar is losing value and dollar debasement is driving up the price of gold.

This isn’t a narrative you don’t typically hear on the mainstream financial networks, but there seems to be a growing awareness that the dollar and the system based on it might be in trouble – even in the mainstream investment world.

We’ve seen Warren Buffettmake a bet on gold, and Goldman Sachs recently warned that the dollar could be in danger of losing its reserve status.

Now, Wells Fargo has weighed in, warning in a report that the bull run in gold signals “a growing lack of trust in the world’s monetary system.”

US Dollar Devalues By 99% Vs Gold In 100 Years As Gold Price Crosses $2,067


In 1932 the gold price was $20.67 dollars per troy ounce, today it crossed $2,067 dollars.

That’s a 99% decline in value of the dollar against gold. Other reserve currencies such as the British pound and Japanese yen have done even worse. The yen has lost 99.98% of its value against gold in 100 years.

We Are On Our Own In The Post-Covid World – Rigged Game


While often presented in the media as a puzzling thing without any root cause, both the income and wealth gaps are the direct result of Federal Reserve policies and actions Helped, of course, by lobbyists for the elites influencing Congressional tax legislation.

So it’s no accident that over time, tax rates on the rich have been substantially cut:

Prices Are Going To Rise…And Fast! | US Issues


Introduction – monetary transmission problems

Between different schools of economics there is much confusion over the link between changes in the quantity of money and prices, exposed afresh by the collapse in GDP due to COVID-19 and the aggressive monetary response from the authorities to contain the economic consequences.

Neo-Keynesians appear to understand the link exists, but for them inflation is always of prices which can be managed by adjusting monetary policy subsequently.

Monetarists follow a mechanical quantity theory leading to a relatively straightforward relationship between changes in the quantity of money and of prices after a time lag of a year or so. The principal difference with the neo-Keynesians is in the timing: monetarists see monetary inflation occurring long before the price effect, and neo-Keynesians in charge of central bank monetary policy assume rising prices can be controlled subsequently by varying interest rates.

The Austrian school, which is banished from these proceedings, explains that inflation is of money and nothing else, and the effect on the general price level is determined by a combination of changes in the money quantity and of consumers’ relative preferences for holding money relative to goods.

Seems Counter-Intuitive in This Crisis: Inflation Heats Up for Services Firms, and They’re Able to Pass it on via Higher Prices | Wolf Street


14 reported an increase in prices that they had paid in June, listed in order:

  1. Accommodation & Food Services;
  2. Real Estate, Rental & Leasing;
  3. Health Care & Social Assistance;
  4. Public Administration;
  5. Wholesale Trade;
  6. Professional, Scientific & Technical Services;
  7. Other Services;

COVID-Crunch? Fed Begins Rationing Coins As Americans Horde Cash


They issued a statement explaining the decision:

Temporary coin order allocation in all Reserve Bank offices
and Federal Reserve coin distribution locations effective June 15, 2020

The COVID‐19 pandemic has significantly disrupted the supply chain
and normal circulation patterns for U.S. coin. In the past few months,
coin deposits from depository institutions to the Federal Reserve have
declined significantly and the U.S. Mint’s production of coin also
decreased due to measures put in place to protect its employees. Federal
Reserve coin orders from depository institutions have begun to increase
as regions reopen, resulting in the Federal Reserve’s coin inventory
being reduced to below normal levels. While the U.S. Mint is the issuing
authority for coin, the Federal Reserve manages coin inventory and its
distribution to depository institutions (including commercial banks,
community banks, credit unions and thrifts) through Reserve Bank cash
operations and offsite locations across the country operated by Federal
Reserve vendors.

The Federal Reserve is working on several fronts to mitigate
the effects of low coin inventories. This includes managing the
allocation of existing Fed inventories, working with the Mint,
as issuing authority, to minimize coin supply constraints and maximize
coin production capacity, and encouraging depository institutions to
order only the coin they need to meet near‐term customer demand.
Depository institutions also can help replenish inventories by removing
barriers to consumer deposits of loose and rolled coins. Although the
Federal Reserve is confident that the coin inventory issues will resolve
once the economy opens more broadly and the coin supply chain returns
to normal circulation patterns, we recognize that these measures alone
will not be enough to resolve near‐term issues.

Consequently, effective Monday, June 15, Reserve Banks and
Federal Reserve coin distribution locations began allocating coin
inventories. To ensure a fair and equitable distribution of
existing coin inventory to all depository institutions, effective June
15, the Federal Reserve Banks and their coin distribution locations
began to allocate available supplies of pennies, nickels, dimes, and
quarters to depository institutions as a temporary measure. The
temporary coin allocation methodology is based on historical order
volume by coin denomination and depository institution endpoint, and
current U.S. Mint production levels. Order limits are unique by coin
denomination and are the same across all Federal Reserve coin
distribution locations. Limits will be reviewed and potentially revised
based on national receipt levels, inventories, and Mint production.

This coin rationing occurs as Americans are hording cash in record amounts due to the COVID crisis.

As Viv Forbes warns at The Epoch Times, don’t let our cash money become the biggest COVID casualty. Swapping paper money for a monopoly of electronic money is a bad deal.

We should always be free to save our cash and protect the value of our savings by investing in real assets or sound money like gold and silver.

Real money is always measurable by weight, such as pounds, grams, pennyweight, and ounces of gold and silver, or carats of gemstones. It cannot be counterfeited or corrupted easily. But the value of fiat money relies on the honesty and openness of the rulers.

Fiat money allows politicians to secretly steal your savings to fight yet another war on someone or something. Next we will see a war on “speculators,” or “hoarders,” and calls for a world currency.

U.N. one-worlders will not let this COVID crisis go to waste. They dream of one-world government (the “National Cabinet” writ large) with no circulating cash and mandatory use of digital money (credit card currency). The climate alarmists would also like to use a digital money monopoly to promote their war on carbon. They could control and ration what we buy and consume—lettuce, tofu, bicycles, and green energy only, with no overseas trips and no secret buying of diesel, bacon, or beef.

We have already seen the start of their war on cash—digital money will join mulberry money, shinplaster, and cubic currency in the long history of failed political money. While people are focused on social distancing and contact tracing, one-worlders are secretly planning to recall banknotes and abolish cash. Then they can ration the “money” available to each of us each month (cutting it off for white males once they reach their “use by date”?).

For many people in the world, a store of gold coins, silver coins, gem stones, or a bit of productive land has allowed them to survive or escape when their government became too oppressive or lost a war, and the local fiat money became a cubic currency.

Unless, of course, history repeats…Gold confiscation?

Go to Source
Author: Tyler Durden

Central Bank Hypnosis | US Issues


Telling citizens to “Stay home” and “Avoid contact” was tantamount to telling my grandfather to cease and desist in providing for his family; that he should shutter the ploughs and the reapers and the milking stations; that his sons and daughters need not feed the chickens or slop the hogs because the government was going to “protect them” from harm. Well, not only would promises like that go unheeded by the generations that preceded us; they would be treated with the utmost of distrust and the vilest of response. The reason that citizens of North America fled Europe and the British Isles to become settlers in the New World was because acceding to government orders and laws and rules and edicts had left them wallowing in a sewer of social and economic slavery while the elites inhabiting the privileged classes prospered. Sadly, over the last century or so, starting around 1934 with the creation of the first U.S. “central bank” (The Federal Reserve), citizens have been purposefully softened by the availability of social safety nets that started innocently and well-intentioned in the 1930’s with programs like the Tennessee Valley Authority and later Freddie Mac and Fannie Mae but at every sniff of an economic downturn, political responses have grown progressively more rapid and more extreme. With the mainstream media (which is now social media more than print or TV/radio media) providing a wonderful symphony of accompaniment, the political grandstanders have been able to generate a cavalcade of panic which has provided the perfect cover for clandestine enrichment of the corporate sector, once again as in 2009 from the public purses on the pretense of economic Armageddon.

Fellow citizens, I ask you: How many times must you be subjected to this moral hazard rot before you arm yourselves with torches and pitchforks and enact change?

Back in late February when the fear mongering was just shifting into gear, I was ranting and raving about the REPO operations back in late September and asking why the Fed was bailing out the hedge funds. I was waving the red warning flag long before COVID-19 conveniently arrived on our doorsteps to present a “Clear and Present Danger” to all aspects of western civilization to the extent that the U.S. central bank alone has authorized an injection of $10 trillion into the corporate pig trough and that is a pittance when one adds the BOJ, the BOC, the ECB, the PBOC, and all of the other purveyors of counterfeit currency to the mix.

Where was it ever written that an elected official has the right to impair the purchasing power of years of labour and prudence and savings of the average citizen? What gives ANY politician the right to debase my money upon which I deserve to rely as I move into retirement?

Why many big companies don’t pay corporate tax – ABC News


Despite generating a pre-tax profit of last financial
year of more than $1 billion, the flying kangaroo has paid no corporate
tax since 2009, thanks to Australia’s generous depreciation provisions
and the ability to offset massive historical losses made by the company
against past and future profits.

Analysis by the
ABC reveals Qantas is not alone — about 380, or one in five, of
Australia’s largest companies have paid no tax for at least the past
three years.

In the cutthroat aviation industry, not one of Australia’s major airlines has paid corporate tax since at least 2013, including Virgin and its subsidiary Tigerair.

Despite selling billions of dollars worth of tickets in Australia, historical losses and the entirely legitimate use of Australia’s tax laws allow them to offset those losses against future profits indefinitely.

Both Qantas and Virgin companies emphasised to the ABC that, notwithstanding
their zero corporate tax liabilities, they had continued to collect and
pay departure taxes, fuel and alcohol excises, payroll tax, GST and

The airlines are typical of highly competitive industries where losses are frequent and capital investment is hugely expensive.

While the debate over corporate tax cuts is likely to dominate the political
debate over the next year, Australia is actually unusually dependent on
personal income tax and the burden of corporate tax rests
disproportionately on a small number of large Australian-based companies.

In 2015/16, among the top 50 companies, 17 paid no corporate tax, leaving just 33 to shoulder the burden.
Between them, they provided just under $20 billion. This includes the big four banks and our two big miners and retailers, Woolworths and

So why do so many companies, some with significant operating profits, pay little or no tax?

Apart from operating losses and depreciation, the declining value of assets
is another key reason. The troubled energy industry is a good example.