Hyperinflation

Brandon Smith Warns The System Is Crashing: "Prepare For Bank Confiscations, Shortages, Insurgency"

"Whatever’s going to happen is going to happen between now and early 2018, because that’s their window of time to create enough chaos and desperation in order to convince people, to rationalize the idea of switching to a global currency system. After that, I would expect there would be a process of acclimating the public to this new system, and I would expect that a lot of countries would be in third world conditions for a while after that."

Venezuela Deploys National Guard As Venezuelans Protest Worthless Cash

Protests and looting broke out in parts of Venezuela on Friday as desperate and cashless Venezuelans, angry that the government hasn’t exchanged their voided bank notes, rose up. The riots were quickly put down, however, when National Guard troops were deployed to put down the unrest.

Hugh Hendry: "We Are Running A Trumpian Portfolio"

  • In Europe we anticipate further duress in the political commitment to the European project as the success of Trump’s economic stimulus plan keeps US growth humming
  • The combination of Trumpian economics and Japanese 10-year nominal yields being trapped at zero by the Bank of Japan should mean the yen continues to weaken.
  • And finally, there are Chinese trades which generate positive carry should the status quo persist yet remain long volatility should pressure on the renminbi intensify

"This Is Total Chaos" - Venezuela Shuts Colombia Border To Stop "Mafia" Currency Smuggling

As if things were not already chaotic enough in the socialist utopia of Venezuela, following President Nicolas Maduro's decision to follow Indian PM Modi's playbook and announce that the nation's largest denomination bill (100-Bolivars - worth around 3c) will be pulled from circulation in 72 hours, he has tonight closed the border to Colombia to crackdown on currency smuggling by so-called "mafias".

Here's What Happens When A Currency Completely Breaks Down

But regardless of the form, money is only credible as long as everyone agrees that it has value, i.e. there’s a large enough market size of people willing to use it. This fundamentally comes down to trust and confidence. But Venezuela’s example shows how quickly that very thin veneer of trust and confidence can shatter, plunging a country into chaotic hyperinflation.