Sunday, April 29, 2018

Mark These Words!

By Egon VonGryerz

The transfer of wealth in coming years will be of a magnitude that few can realize today. Most billionaires will disappear and not understand what has happened. They all thought it was their own ability that created their wealth. They will soon become aware that their wealth was based on the central bank money printing bonanza that favored a few and impoverished not just the poor but also the middle classes. But when bubbles burst, debts implode and so do asset values.
 
Many ask how we can have hyperinflation when so many assets will implode which is deflationary. As I have explained before, we will have “FLATION” In coming years. This means both deflation, stagflation, inflation and hyperinflation simultaneously. All bubble assets will deflate and the economy will have deflation which is inflation with economic stagnation. Consumer products, foods, raw materials and many commodities will hyperinflate.

Most people don’t understand that we can have hyperinflation without high demand. Just look at Venezuela and you will understand. Here we have an economy which is totally collapsing with most people living in absolute poverty and squalor. There is very little demand for products or even food, since there is none, and people can’t afford it. Still, prices are going up exponentially. This has nothing to do with demand but with the currency. Hyperinflation is a currency event and when a country prints unlimited amounts of money the currency collapses. And this is what creates hyperinflation.

Read the entire essay

Posted by ΛΕΟΝΙΔΑΣ 

No comments: