• Sprott Money
    05/06/2016 - 06:03
    The US, in its own decline, is showing this same self-destructive tendency. The worse things get, the greater the inclination of the citizenry to say, “Carry on, everything’s fine.”

Guest Post: Hyperinflation, Part II: What It Will Look Like

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Thu, 08/26/2010 - 17:18 | 546755 assumptionblindness
assumptionblindness's picture

Sweet baby Jesus, here we go again!

Thu, 08/26/2010 - 19:12 | 546996 Max Hunter
Max Hunter's picture

guns and gardens bitchez!!

Thu, 08/26/2010 - 19:29 | 547025 Careless Whisper
Careless Whisper's picture

and GOLD too. but guess what, Fort Knox is prolly empty so don't count on any new U.S. currency backed by gold. Ron Paul will introduce legislation next month to AUDIT FORT KNOX GOLD RESERVES. we all know it's been "sold" to the banksters so let's just take the red pill and deal with it.




Thu, 08/26/2010 - 19:41 | 547047 dlmaniac
dlmaniac's picture

Soon trying to audit gold reserve or anything Fed wants to hide will be treated as an act of treason or terrorism.

Fri, 08/27/2010 - 12:53 | 548515 WaterWings
WaterWings's picture

Mr. Lira: FAIL

—from Wall Street to Main Street by way of $15 a gallon gas prices, and $10 a gallon heating oil prices.

Wheat from the Dakotas @ $15 a gallon? Oranges from Florida? No more worries about poisoned Gulf shrimp - they won't be shipping it anymore. An analysis of how a new currency will remedy our service economy sans imports would far more interesting.  

I can just see Lakers fans waiting outside distribution centers:

"Ma'am, put down that stick, diapers and formula haven't arrived yet. Please be patient...(inaudible)...No, you still won't have to pay for it...I know your babies are hungry...I don't care if your TV isn't working anymore...No, we don't have any prescription pills...I already told you, please go home and please put down that stick...I don't have any water...I know you walked two hours, I can see that."

Everyone standing in a line, all nice and orderly (LOL). It's the walk home you have to worry about - defending oneself against those not willing to wait in line. Maybe their ration card was revoked for a violation. Maybe they already used it for the week and their kids are still hungry. What will you do if some sort of "enforcement officer" knocks on your door and needs to inspect something in your home? Are they really there to enforce "the Law".

Forget driving to work - plenty of abandoned cars will start blocking roadways. Where will the tow-trucks put them all? They can't wait in line for fuel and clear roadways simultaneously? Don't forget to put a bicycle tube repair kit in your pocket!

Palliative money-printing will take place—hence the average American family will likely be using bundles of $100 bills to fire up the chimney that hyperinflationary winter.

I'm sure you mean they will try to deposit money in consumer accounts, no? Can you imagine armed convoys full of soon-to-be-worthless paper? That's for the movies. What's that about a new currency?

And while the opportunistic portion of your readers is out following your advice to buy! buy! buy! how will they feed themselves on a daily basis? With healthy, rosy cheeks they will become targets - if you're not within eyesight of an armed checkpoint consider yourself "fair game".

Maybe your readers are smarter than that. They'll be headed to the farms; pockets full of PMs; hoping farmer Joe still has wheat and hogs to sell. Surely no one can pedal as fast as your readers! A little squeal from the hog over every bump in the road. Any hog will like that new apartment!

How about a little twist for perspective:

Even in the midst of [the Black Plague], things will get better.

In other words: don't get sick! I am sure that medical facilities will be swamped with walk-ins. Pun intended.

Otherwise the articles are great!

Fri, 08/27/2010 - 21:05 | 549596 FEDbuster
Thu, 08/26/2010 - 20:09 | 547088 TwoShortPlanks
TwoShortPlanks's picture

Fort Knox: A US Taxpayer funded site which looks after Rothschild money...prob's!

Fri, 08/27/2010 - 02:41 | 547635 MAXIMUM CHINCH


Fri, 08/27/2010 - 04:08 | 547668 Squid-puppets a...
Squid-puppets a-go-go's picture

what I like about these 2 articles is the distinction he makes with asset classes - I cant remember how many comments on ZH over the months people have talked about hyperinflation like it will raise house and car prices. Uh-uh, its food and fuel that go through the moon and every other asset class be damned and  sacrified. One guy coined a good phrase for the misconception - Biflation - but when you understand the way hyperinflation plays out you dont need the phrase coined to start with


Fri, 08/27/2010 - 00:26 | 547483 tictawk
tictawk's picture

The problem with the above article is the author is missing the key point of DEBT and CASH.  Debt is not the same as CASH.  DEBT is illiquid (represents FUTURE cash) and Cash is Liquidity.  We have 40 years of debt buildup into trillions and the debt to cash ratio is 50:1 or more.  

Debt is a BLACK HOLE that is sucking everything into the vortex and it is the reason why the Fed is powerless.  They CANNOT print their way into prosperity and the underpinnings of the DEBT PYRAMID have eroded and all the Fed is trying to do is to desperately shore it up. 

Fri, 08/27/2010 - 05:23 | 547594 MichaelG
MichaelG's picture

You're not wrong about the debt problem, of course, but just whilst we're on the subject of 'missing key points':

Palliative money-printing will take place—hence the average American family will likely be using bundles of $100 bills to fire up the chimney that hyperinflationary winter.

Fri, 08/27/2010 - 05:00 | 547690 drheywood
drheywood's picture

What are you saying, exactly? There'll be no hyperinflation, because once people have too much money but no bread, they'll pay back their debts?

I don't think the purpose of the Fed is to bring prosperity. It's rather to prevent the existance of such an institution, by dressing up as one, which is obviously working.

Fri, 08/27/2010 - 02:26 | 547626 Canoe Driver
Canoe Driver's picture

Hey, Gonzalo, nice job, for a "novelist and filmmaker."



A Space Engineer and Circulatory System Analyst

Fri, 08/27/2010 - 03:45 | 547664 Al Gorerhythm
Al Gorerhythm's picture

So, you fit toilets into bathroom spaces?

Fri, 08/27/2010 - 07:36 | 547752 Mako
Mako's picture

"Sweet baby Jesus, here we go again!"

Exactly what I was thinking, the author that doesn't even know the correct definition of "inflation" is going to write another stupid article on "hyperinflation". 

Fri, 08/27/2010 - 12:17 | 548443 RockyRacoon
Fri, 08/27/2010 - 14:23 | 548744 akak
akak's picture

The shark speaks! And once again, has nothing but gibberish to say.

Thu, 08/26/2010 - 17:22 | 546759 rosiescenario
rosiescenario's picture

....some of the more cunning folks have already stashed away ammo (as evidenced by the shortage of available ammo for the past 2 years). It will be the new coin of the realm..."how much do you want for that lb. of bacon"...."let's see, that would be five 223's and the sales tax would add four 22lr's.....if you have one 50BMG, you could get 4 lbs."

Thu, 08/26/2010 - 17:25 | 546764 cossack55
cossack55's picture

I heard today the EPA is going to ban lead in bullets thus raising the price and dropping the performance of most ammo.  Thoughts?

Thu, 08/26/2010 - 17:28 | 546770 apberusdisvet
apberusdisvet's picture

You have to ask yourself what Adolph (the guy with the mustache) would do, if he was planning a total takeover.

Fri, 08/27/2010 - 12:12 | 548434 Geoff-UK
Geoff-UK's picture

Why junk this guy without a comment?  It's not a fair question?  Study your history.

Lot of you junkers are real pussies...

Thu, 08/26/2010 - 17:35 | 546786 rosiescenario
rosiescenario's picture

....out here in the land of fun and sun we have already dropped lead since the endangered condors (which came here from So. America and are not native) were supposedly endangered by lead...

Thu, 08/26/2010 - 18:11 | 546860 impending doom
impending doom's picture

Raising the price: yes. Dropping the performance: no. Check out the Cor-Bon solid copper bullets, or better yet DoubleTap. Penetrates like an FMJ but expands like bonded JHP...

Thu, 08/26/2010 - 18:12 | 546862 dukeystick
dukeystick's picture

Actually, the performance you are referring to is efficiency, not effectiveness.  Many common substitutes for lead would make rounds MORE ARMOR PIERCING !

Fri, 08/27/2010 - 12:59 | 548531 WaterWings
WaterWings's picture

W is great.

Sun, 08/29/2010 - 15:00 | 551596 Martel
Martel's picture

So they're going to smelt some of that Fort Knox gold bullion, to produce tungsten ammo for Minnesota rednecks and NWO-crowd?

Thu, 08/26/2010 - 18:21 | 546885 OldTrooper
OldTrooper's picture

There's been talk of that for a long time.  Don't know if it's getting new traction or not.

I suppose it could happen.  If it does the Mexicans should start making and smuggling ammo.

Stock up on ammo and get reloading supplies if you are concerned.

Thu, 08/26/2010 - 18:23 | 546888 cossack55
cossack55's picture

Thought of that.  I understand the last shortage period was because of demand for primers and reloaders are last on the list to have them available.  Either way, things might get tough on this end of the supply chain.

Thu, 08/26/2010 - 20:23 | 547116 tmosley
tmosley's picture

Primers are cheap. Buy them in bulk now.  Buy more than you think you will need.

Also, it is possible to make your own primers if you have to.  White phospherous is widely available in strike matches.

Thu, 08/26/2010 - 21:37 | 547237 espirit
espirit's picture

Buy some molds to cast your own.  Lead can be found in lots of places if you're resouceful. Not the ballistic equivalent of a FMJ, but will work loaded down.

Heck, I guess you could cast them from silver just as well, and will take down werewolves, banksters, etc.

Thu, 08/26/2010 - 22:50 | 547348 New_Meat
New_Meat's picture

lotsa' brushes and Hoppes--our Pb gonna foul the barrels.

Civil war way to clear foul'd barrel was to pee into them.  Come to think of it, Manilla John's way to cool a MG barrel was the same.

Don't cha know.

- Ned

Thu, 08/26/2010 - 23:13 | 547393 kathy.chamberli...
kathy.chamberlin@gmail.com's picture

no, i don't, cha know fuck, don't cha know.

Fri, 08/27/2010 - 00:53 | 547513 Rusty Shorts
Rusty Shorts's picture

Hey New Meat, your local scuba dive shop has plenty of lead weights, think about it.


 Must see.

Fri, 08/27/2010 - 11:33 | 548336 Coldsun
Coldsun's picture

Not a bad suggestion. Certain bullet moulds are made for different types of lead/alloy composition. The alloy typically added to lead is tin as it is cheap and adds hardness. Many moulds are made specifically for the use of wheel weights; another source of a cheap, hard lead alloy.

I rather run out of money than run out of bullets.

By the way, EPA is talking about banning lead ammunition and fishing sinkers. How else are they going to effectively remove the second ammendment? Congress won't do it so they need a body without checks and balances.


If you couldn't figure it out from the above; I will not be complying.

Fri, 08/27/2010 - 01:28 | 547568 Village Idiot
Village Idiot's picture

Modern day shooters running corrosive rounds piss down their barrels in a pinch. Natures cleaning kit. 

Thu, 08/26/2010 - 19:14 | 547001 DosZap
DosZap's picture


Yes, I posted that in a diferent thread ealier here today.

First, the EPA has it's hands MORE than Full.

They are trying to initiate the Climate Control/Carbon shit, into 20yr old existing LAWS.

That is Illegal..............Texas is saying FU.

You(EPA) do not have the power, nor the authority to change or add to pre-existing Laws, passed by Congress.............nkow what?.

They do not have the authority, and if they push it, we will have a shit storm.(WE as a state are in compliance, and are under the emissons limits).

So, we have a major illegal take over via the EPA coming(trying to).

Secondly,if not one more Cartridge was produced today, ever.In America, there is enough in the hands of the people to have fought WWII,Iraq, and Afganistan, and have lots left over.(during the'94 Clintonista AWB scare), I called SOG out of Ohio, to ask about a particular item.

This was on a Sat..they were open 8:00-12:00 CST,it was close to go home time.

The gentleman I spoke with, after I jokingly asked him how were sales, without any further prodding, he said they had SOLD over 1 Billion rounds, of ONE caliber that day.... in 4 hours.

Now, stop and think about all the other stores in America, and RUNS we have had on AR's, AK Replicas,etc,before, and SINCE Clinton, and trillions of rds that are stashed and in Americans hands.

The SAME exact thing happened on an even larger scale when Obammmy was elected...........those are facts, not thoughts.

Do you actually think, the fools( all 200-300 of them) on the hill, are stupid enough to come after over 200 million KNOWN weapons, and with 80 million plus gun owners in a country the size of America,and expect a voluntary  turn in?.

Dream on...............they have to go thru the NRA, and the GOA first..........and that's not a good thing, for them.

Thu, 08/26/2010 - 19:57 | 547074 Treeplanter
Treeplanter's picture

This town's best mechanic is also a gun dealer.  Right after the Obama coronation he did a series of bulk purchases of AR15s, of 70 or 80 at a time.  Buyers lined up to pay in advance, well below retail.  And this is an Army town, already full of guns.

Thu, 08/26/2010 - 23:58 | 547458 DoChenRollingBearing
DoChenRollingBearing's picture

Guy I know in rural NC went and bought $12,000 of guns & ammo the day after Obama won the election.

Since then, I went and bought an AK-47 and a Beretta 9 mm.  I have 500 rounds each, and have field-stripped each weapon once.  I was never in the military, but I at least have joined the 80,000,000 gun owners here in America.

If I had to guess, the oathkeepers.org links into our Armed Forces would mean that our military would not fire on us citizens if it comes to that.

They will never get our guns and they will never get our gold!

Fri, 08/27/2010 - 08:35 | 547809 PierreLegrand
PierreLegrand's picture

You have the rifles but get training...knowing how to break it down isn't going to help you use the weapon. Try Appleseed...rifle training that teaches you how to shoot a rifle well enough to hit a target out to 500 yards and it is cheap for the 2 day class. If you don't have time for that try a one day...


Fri, 08/27/2010 - 19:01 | 549413 Geoff-UK
Geoff-UK's picture

Our military is the finest trained and smartest the world has ever known...as a group.  However, some individuals in the Army and Navy (who have never been able to be as circumspect in their recruiting as the AF and USMC) have a gang problem. 

Plus, it probably won't be the military but the cops--and cops are...well, unreliable at best in their understanding of Constitutional authority.  If things get bad, and them being an asshole to you is how they keep their job and feed THEIR family?  All bets are off.  Best not to be near a population center to interact with cops in the first place if this gets bad...

Sun, 08/29/2010 - 14:29 | 551552 Xibalba
Xibalba's picture

Get a Saiga 12.  You won't regret it, and you'll hit whetever you're aiming at. 

Fri, 08/27/2010 - 01:37 | 547582 Homeland Security
Homeland Security's picture

All Congress, or your state or county leadership, has to do in convince the local PoPo to begin taking away your toys. In fact, the NOPD decided to do this all by themselves and they had the Coast Guard acting similarly...see for yourself  http://www.youtube.com/watch?v=-taU9d26wT4

According to Dmitri Orlov (reported on his experiences with the financial collapse of the USSR), the PoPo is quick to form its own gang to take control.

Fri, 08/27/2010 - 09:39 | 547975 MachoMan
MachoMan's picture

They got one shot at the kitty and the SCOTUS declared it unconstitutional...  so, at this point, how do you propose they do that again, the rest of the country knowing it is illegal for the police to do so and that they're empowered to resist arrest?  Maybe if you can sequester individuals, then one by one you could do it...  but you try that shit in a lot of southern or western neighborhoods, and you're going to get...  resistance...  in short order.  Presuming the police forces even try and do it knowing it is illegal.

Thu, 08/26/2010 - 23:31 | 547421 minus dog
minus dog's picture

EPA can't effectively ban jacketed lead ammo when a day or two of work on my drill press and a couple of pieces of steel later, I have myself some dies to jacket my own ammo.  You can make 53gr FMJ using lead wire or wheel weights and spent .22LR casings all day long.  No shit.

This is not a road they want to go down.

The real threat to arms availability is banning conventional primers, also over "lead" issues.  And even that can only go so far... you can actually remanufacture your own primers using spent ones and some basic chemistry, as long as you use good hearing and eye protection.

Fri, 08/27/2010 - 09:46 | 547989 1100-TACTICAL-12
1100-TACTICAL-12's picture

I heard the same thing. And if you make them out of any other kind of metal they would be considered armor piercing, which are illegal. They're not gonna take our gun's just the ammo. TSWHTF

Fri, 08/27/2010 - 23:24 | 549801 fajensen
fajensen's picture

Bring It - The modern rounds like the SS190 are all aluminium with a steel rod inserted (or polythene+steel "penetrator"). They do nasty things to car doors, helmets and body armour, that the po-lice wont like. http://en.wikipedia.org/wiki/5.7x28mm

The cun(t)sumer version will probably be copper-jacketed clay something ....

Thu, 08/26/2010 - 17:39 | 546793 optimator
optimator's picture

During WWII in the European POW camps starving soldiers would trade their Red Cross vittles for cigarettes.  After the war, the currency in Germany WAS cigarettes.

Thu, 08/26/2010 - 18:24 | 546891 OldTrooper
OldTrooper's picture

Check out King Rat for a fictional POW currency story.

Thu, 08/26/2010 - 22:52 | 547353 New_Meat
New_Meat's picture

Clavell- "fiction"-I always thought he'd lived it. - Ned

Fri, 08/27/2010 - 00:48 | 547508 OldTrooper
OldTrooper's picture

He was a Japanese POW during WWII.  Wouldn't surprise me if elements of King Rat didn't come from that experience.  Couldn't say how much, though.  It's a good read, regardless.

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