• Gold Money
    05/26/2016 - 14:27
    Here’s a question that might have you pondering: Is gold a commodity? More importantly, are we doing a disservice to the gold industry by calling gold a commodity? These may sound like silly...

Hyperinflation

Steve H. Hanke's picture

On Hyperinflation Hype





The burgeoning literature contains a great deal of hype, which validates the 95% Rule: 95% of what is written about economics and finance is either wrong or irrelevant.

 
Tyler Durden's picture

"Negative Rates Are Dangerous" OECD Chair Warns "Our Entire System Is Unstable"





"There is excessive debt everywhere and negative interest rates are dangerous... My number one fear? That’s the same as asking me where it will start. When you view the economy as a complex, adaptive system, like many other systems, one of the clear findings from the literature is that the trigger doesn’t matter; it’s the system that’s unstable. And I think our system is unstable... Central Bank models are just wrong"

 
Tyler Durden's picture

Venezuela Prepares To Liquidate Its Remaining Gold Holdings To Pay Coming Debt Maturities





Venezuela's central bank has begun negotiations with the suddenly troubled Deutsche Bank to carry out gold swaps "to improve the liquidity of its foreign reserves as it faces heavy debt payments this year", payments which it won't be able to fund unless it manages to "liquify" its gold. "One of the sources said the central bank has taken an unspecified amount of gold out of the country so that it can be certified, which is required for gold that is used in such swaps."

 
Tyler Durden's picture

Hyperinflating Venezuela Used 36 Boeing 747 Cargo Planes To Deliver Its Worthless Bank Notes





Recently we joked that it is unclear just where Venezuela will find all the paper banknotes it needs for all its new currency.  And, as if on cue, the WSJ answered. As it turns out we were not the only ones wondering how the devastated "socialist paradise" gets its exponentially collapsing paper currency, which in just the past month has lost 17% of its value. The answer: 36 Boeing 747s.

 
Tyler Durden's picture

"Time To Panic"? Nigeria Begs World Bank For Massive Loan As Dollar Reserves Dry Up





Having urged "don't panic" just 4 short months ago, it appears Nigeria just did just that as the global dollar short squeeze forces the eight-month-old government of President Muhammadu Buhari to beg The World Bank and African Development Bank for $3.5bn in emergency loans to help fund a $15bn deficit in a budget heavy on public spending amid collapsing oil revenues. Just as we warned in December, the dollar shortage has arrived, perhaps now is time to panic after all.

 
Tyler Durden's picture

Gold, Political Instability, & Why QE Was The Worst Thing In The World





"You can’t deny the price action. Over the last few weeks, it is positively buoyant. If I were short, my butt cheeks would be tightening up. I’m starting to develop a theory, which is crazy, but then again... it might not be entirely crazy. You can help me decide. Maybe gold is starting to price in some of this political instability. Maybe it is starting to price in a Sanders or Trump presidency."

 
Tyler Durden's picture

Is There A "Fourth Revolution" On The Horizon In America?





In stark but simple terms, unless Americans are made aware of this financial crisis and demand accountability, the very fabric of our society will be destroyed.

 
Tyler Durden's picture

This Is What The Death Of A Nation Looks Like: Venezuela Prepares For 720% Hyperinflation





For citizens of Nicholas Maduro's socialist paradise the news is terrible, and getting worse with every passing day.

 
Tyler Durden's picture

The World’s Most Famous Case Of Hyperinflation (Part 2)





The Great War ended on the 11th hour of November 11th, 1918, when the signed armistice came into effect. Though this peace would signal the end of the war, it would also help lead to a series of further destruction: this time the destruction of wealth and savings. The world’s most famous hyperinflation event, which took place in Germany from 1921 and 1924, was a financial calamity that led millions of people to have their savings erased.

 
Tyler Durden's picture

The World’s Most Famous Case Of Hyperinflation (Part 1)





The Great War ended on the 11th hour of November 11th, 1918, when the signed armistice came into effect. Though this peace would signal the end of the war, it would also help lead to a series of further destruction: this time the destruction of wealth and savings. The world’s most famous hyperinflation event, which took place in Germany from 1921 and 1924, was a financial calamity that led millions of people to have their savings erased.

 
Tyler Durden's picture

Financial Collapse Leads To War





A financial oligarchy has seized control of the country, and, since it can't control its own appetites, is running it into the ground. Thus, it would make sense for it to have some sort of back-up plan for when the whole financial house of cards falls apart. Ideally, this plan would effectively put down any chance of revolt of the downtrodden masses, and allow the oligarchy to maintain security and hold onto its wealth. Peacetime is fine for as long as it can placate the populace with bread and circuses, but when a financial calamity causes the economy to crater and bread and circuses turn scarce, a handy fallback is war.

 
Tyler Durden's picture

Nigerian Currency Collapses After Central Bank Halts Dollar Sales To Stall "Hyperinflation Monster"





Having told banks and investors "don't panic" in September, amid spiking interbank lending rates and surging default/devaluation risks, it appears the massive shortage of dollars that we warned about in December has washed tsunami-like ashore in oil-producing Nigeria. Following the Central bank's decision this week to halt dollar sales to non-bank FX market operators, black market exchange rates spiked to 282/USD (vs 199 official) and CDS spiked to record highs implying drastic devaluations loom.

 
Tyler Durden's picture

Yes, The ECB Chief Economist Really Said It: "If You Print Enough Money, You Always Get Inflation. Always."





And with that we can finally close the book on slippery central bank semantics on what precisely it is that they do, and what it is they plan to achieve.

 
Tyler Durden's picture

Angola's Currency Collapses To Record Low As "Hyperinflation Monster" Looms Over Africa





Just two weeks ago we warned of the looming "hyperinflation monster" in Africa with the continent appearing to be running out of dollars as some of Africa’s largest economies, including Nigeria, Angola, Ethiopia and Mozambique, are restricting access to the greenback to protect dwindling reserves. Specifically we warned of Angola's already-soaring inflation hampering its ability to 'adjust' its currency towards its black market 'reality'. But that did not stop the central bank devaluing Kwanza by 15% over the weekend - the most since 2001 - to record lows as crude prices crush their economy and the flow of USDs.

 
Tyler Durden's picture

The Best And Worst Performing Assets Of 2015





With markets wrapped up for 2015 now, reviewing the performance of asset classes last year shows that it was one where negative asset class returns were aplenty, while those finishing in positive territory were few and far between. Indeed, of the 42 assets we monitor in Figure 5, just 9 finished with a positive return in Dollar-adjusted terms over the full year.  At the other end of the scale there were some notable losers.

 

 
Syndicate content
Do NOT follow this link or you will be banned from the site!