I would have to say (regrettably) that 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 what causes it.
However, this is an issue of which everybody needs to be aware. This is not just something that is going to happen…but something which is already in progress in the U.S. monetary system and global economy. I trust this will lay a reasonable foundation for your understanding that my other posts and ongoing Organic Economics™ online book can then build upon.
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, but flatly ignores the reasons that such sudden price increases occur.
So 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 bizarre 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 was even occurring very recently 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 price hyperinflation has never occurred before on a GLOBAL scale—but it is about to do so, and the process has already begun.
Worse yet, about 98% of today’s currencies are not even PRINTED or MINTED into a tangible form, but exist only in digital records within the computers of each central banking system. So with today’s “digital” ability to increase a currency’s supply with only a few clicks on a computer, the coming hyperinflation will most certainly exceed the velocity of ANY hyperinflation that has ever happened before.
The Bible, of course, condemns such devaluation of currencies because such criminal behavior 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, The Amplified Bible)
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 not only the “supreme law of the land,” but it also only recognizes gold and silver as money. This fact makes the destruction of the U.S. dollar a criminal offense of “constitutional proportions.”
I use “false weights” as a metaphor for what is happening. When new volumes of currency are created out of thin air by banking oligarchs, 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. They profit handsomely, therefore, by having government-granted monopolies over the money supply. In effect, they have a legal “whitewash” granted by the governments that allows them to counterfeit money at will—so long as they also fund the government with as much money as it desires, of course.
However, those who are further down the line away from the “creation” process are not so fortunate. They find the currency has already been debased (devalued) as the marketplace has adjusted to the increase in the currency supply; and thus, each unit is worth a lower value. So real wages tend to drop, as prices rise faster than salaries increase. In short, the buying power of the money that people earn decreases faster than incomes can adjust and increase. So the prices rise in the stores and at the fuel station pumps, while people can afford less and less of the things that they need.
When price hyperinflation finally kicks in, however, that tendency multiplies exponentially. In Weimar Germany back in the early 1920s, wages were paid to the workers every couple of hours so that their wives could run to stores to buy something with their German currency before all the value expired. From the time their husbands earned the wage, to the time they could get to the store, their currency had already devalued significantly—though only a few hours had elapsed.
So Deuteronomy’s edict above is clearly violated in that the one with “the bag” has “unbalanced” the proverbial scales within the economy in question. There is larger “weight” to the money when they printed the new currency units, but much smaller “weight” to the currency’s value once it gets into the hands of the rest of society.
Who are these criminals who profit so brazenly at everybody else’s pain and loss? Well, you can answer that with another question: Who determines the currency supply? Generally, it is the central bankers who do so, but only with the consent of their money-hungry government.
In the United States, that would be the Federal Reserve Bank (FED), which is really a private institution, and no more a part of the government than the shipping company Federal Express. Their co-conspirator is the U.S. Federal Government (Congress and the President in particular). So then who is to blame for the consequent hyperinflation in prices once the market reacts? The same criminals who caused the “money” supply hyperinflation.
Once hyperinflation shows up in the prices, however, what these criminals do is attempt to pass the blame off on the “free market” and “forces beyond their control.” The favorite straw-men of politicians and central bankers are unnamed “speculators.” However, there is really nobody to blame but the bankers and politicians.
Nevertheless, these con artists will step in front of the media and try to convince you that they are trying to “alleviate the crisis” caused by these terrible “speculators.” They will then try to either portray themselves as the proverbial “knights in shining armor” riding forth to slay the “hyperinflation dragon”; or they play the role of “innocent victims” regarding the terrible plight “thrust upon them” by these unnamed hooligans.
However, the OPPOSITE is actually true—politicians and bankers cause the hyperinflation problem, and ALL its terrible results on society. In fact, they actually profit financially while they destroy the poor and middle class of their nations.
So their propaganda is no more than “smoke and mirrors” intended to camouflage their guilt and self-serving agendas (and to keep themselves from getting caught by those they victimized). The reality is that they used “false weights” for their own profit and gain, and destroyed their nation’s currency in the process.
And the U.S. is leading the way in this criminal activity today.
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 did in Zimbabwe recently) they will realize only too late what a tragic effect on society the greed of these culprits has caused.
When these photos were taken in Zimbabwe, for example, it cost $25 million for a soda pop. Because of the sheer volume of money that it took to buy something so simple, the grocery markets were even forced to stop counting the money and began weighing the bundles of bills instead.
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…
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.
(By the way, this can ONLY happen with currencies that are NOT backed by genuine money, i.e. gold and/or silver. True money cannot be “hyper-inflated” because you have to mine it from the ground and refine it, before it can be fabricated into a form for use in the marketplace. So true money economies—which do not exist at present, but should reemerge soon—cannot ever inflict such destruction upon its citizenry. Again, I teach the reasons for this throughout the pages of Organic Economics™ on this website. )
With that in mind, look at the following chart produced by the St. Louis Federal Reserve concerning the Adjusted Monetary Base (i.e. supply). This chart updates itself automatically on our website monthly, as they update their figures:
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. This is a MAJOR issue of concern.
Since the monetary supply has ALREADY begun to hyperinflate, it is only a matter of time before the markets lose confidence in the U.S. dollar and prices begin to hyperinflate as well.
That is enough of an introduction to this subject for now. I trust that it was sufficient to both inform and alarm you, so that you will take the time necessary to further your study on these subjects. This is critical if you are going to protect your family and savings from the coming economic collapse.
Now for more clarity regarding this and related topics, I recommend the following links where you can find additional data:
- Our free online book, Organic Economics™, here on TheWisdomOfGold.com website. This online book will provide you a wonderful foundation of knowledge regarding money, trade, and currencies. It does so within a biblical framework that helps to make complex concepts very simple to comprehend.
- 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.
- Welcome to Zimbabwe by Doug French: A more recent account of Zimbabwe, through the eyes of an Austrian Economist.
- 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. (Hint: It was those who could see what was coming, and prepared themselves ahead of time for the hyperinflation.)
So be informed! Please avail yourself also of the information we provide you within this website, 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 financially, 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, The Amplified Bible)
The key is to take these things seriously, to do your due diligence (i.e. study and research), and get in position to profit rather than to suffer.
Again: Hyperinflation in the United States and many other countries of the world, has already begun in their monetary supplies, and will soon begin to show up within the prices of the marketplace. Since the U.S. dollar is the “world’s reserve currency” and is allegedly “backing” most of the other paper currencies of the world, hyperinflation will spread rapidly on a global scale in most currencies. In fact, most central banks already devalue their currencies along with the U.S. dollar’s decline, in order to keep their exchange rates from hurting their country’s export businesses.
So 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.
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