Paper & Gold Dollars

[A ‘Step Sum’ is a cumulative number of days up minus down. A BEV (Bear’s Eye View) shows the current price as a percent of the Most Recent High (eg. if MRH = 1000 and current price is 900, then the price is -10% (below) its MRH. -Bob]

By Mark Lundeen – Re-Blogged From http://www.Gold-Eagle.com

It doesn’t look like it in the Dow Jones’ Bear’s Eye View (BEV) chart below, but in the past three weeks the venerable Dow has increased 1,100 points (4.39%). Three Fridays ago the Dow Jones closed with a 24K handle. Two weeks later it has almost blown through 25,000, closing the week at 25,803. When a market series makes ninety-four new all-time highs in only fourteen months, things like this happen.

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Monetary Update for the Dollar

By Alasdair Macleod – Re-Blogged From GoldMoney

A dispassionate look at the quantities and flows of fiat dollars tells us much about the current state of the US economy, and therefore prospects for the dollar itself. This is a starting point for understanding the dynamics likely to affect the dollar’s purchasing power after the next credit-induced crisis, which are now beginning to clarify. That is the purpose of this article, which starts by updating the most recent developments in the quantity of fiat money (FMQ), the greatest of all monetary pictures.

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Soaring Deficits Force Treasury into Foolish Gamble

By Michael Pento – Re-Blogged From http://www.pentoport.com

As mentioned last week in Part I, the U.S. National debt is now at a record $20.5 trillion. And the first month of fiscal 2018 showed a deficit increase of nearly 38% over fiscal 2017. The total amount of Non-Financial Debt is up nearly $15 trillion during the 2007-2017 timeframe. In addition, the Federal Reserve Bank of New York reported that household debt totaled $13 trillion in the third quarter ended September 30th, which is a record high and the 13th straight quarterly increase. And, CNBC recently reported that the debt of nonfinancial corporations has grown by $1 trillion in just the last two years and now totals over $8.7 trillion, which is also a record 45% of GDP.

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Deflation Must Be Embraced

By Alasdair Macleod – Re-Blogged From http://www.Silver-Phoenix500.com

There are two problems with understanding deflation: it is ill defined, and it has a bad name. This article puts deflation into its proper context. This is an important topic for advocates of gold as money, who will be aware that sound money, in theory, leads to lower prices over time and is often criticised as an objective, because it is not an inflationary stimulation.

The simplest definition for deflation is that it is when the quantity of money contracts. This can come about in one or more of three ways. The central bank may reduce the quantity of base money, commercial banks may reduce the amount of bank credit, or foreigners, in possession of your currency from an imbalance of trade, sell it to the central bank.

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Will Macro-Economists Ever Learn?

By Alasdair Macleod – Re-Blogged From http://www.Silver-Phoenix500.com

As we lurch through successive credit crises, central bankers and economists believe they learn valuable lessons every time, and that the ultimate prize, the suppression of business cycles through monetary policy, will be achieved. Enormous effort is put into computer models to enable economists to predict the future, and no doubt, the modellers are now working with artificial intelligence to improve their accuracy.

We saw, over Brexit, how wrong the Bank of England’s and the UK Treasury’s models were, and these errors were also evident in the OECD’s model. Brexiteers smelled conspiracy, but in the absence of evidence, perhaps we should give them the benefit of the doubt and assume the errors were genuine. If so, all computer economic modelling has been a waste of time.

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Deepening Crisis In Hyper-inflationary Venezuela And Zimbabwe

By Mark O’Byrne – Re-Blogged From http://www.Gold-Eagle.com

– Deepening Crisis In Hyper-inflationary Venezuela and Zimbabwe
– Real inflation in Zimbabwe is 313 percent annually and 112 percent on a monthly basis
– Venezuela’s new 100,000-bolivar note is worth less today than US$ 2.50
– Maduro announces plans to eliminate all physical cash
– Gold rises in response to ongoing crises

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Preparing for the Possibility of Hyperinflation

By Anthony Gilbert – Writer at http://www.realfx.com/blog/

Hyperinflation is a rapid increase in inflation where the prices rise so drastically that calling it inflation becomes meaningless.  While there is no set percentage for hyperinflation, it is often used to describe price increases of 50% or more over a short period.  The sharp increase is what separates hyperinflation from other types of inflation.

What Causes Hyperinflation?

Hyperinflation can occur when the government begins printing larger amounts of money to pay for spending.  As the amount of money being printed increases, the prices of goods and services will increase.  Typically the government would lower the supply of money to curb inflation, but when they continue to print more, there can be an imbalance in supply and demand of currency.  Prices will then skyrocket, and currency will begin to lose its value.  This results in hyperinflation.  Hyperinflation can occur at any time but historically has often happened as results of war economies.

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