The Case for Hyperinflation

There is only one way out of Depression:  Destroying savings. However, there are two ways to go about that.

In this morning’s report, we lay out what looks to us like a coming hyperinflation.  It has some amazing implications for life and investing.  We’re moving into the economic Twilight Zone.  Where things of no value are priced infinitely high. Doubt it?  Looked at cryptos?

A few headlines first, but then an in-depth ChartPack section.

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16 thoughts on “The Case for Hyperinflation”

  1. “Thus, in the wake of devastating wars both Germany and Japan rose immediately from the ashes to become would-be economic powerhouses, once again.”

    Germany and Japan were setup to be exporters to the U.S. The storage units testify to the success. It’s amazing.

    Into the 1930’s many American children worked gigs. They’d have a job in the factory or textile mill or coalmine. Younger on the farms.

    1700’s children were screwed:

    “Child labor was a common feature in industrial societies as children as young as four years old were often employed in the factories and mines that developed during the time. This was particularly true in Britain, where the Industrial Revolution first began in the 1700s.”

    Today’s Western children have leisure for pursuits.

    • I picked berries when I was seven
      and set pins when I was eleven.
      I have no complaints @ age 84 !!!!!!!!!!!!!!!!!
      Excluding guberment excess

  2. Prechter released a video for this month’s Elliott Wave Theorist. He is allowing that hyperinflation for commodities is on the table, but not a certainty, and that there are probably three most likely scenarios. He thinks interest rates are headed up in any scenario. For equities, he is still looking for deflation in the near future.
    He also allowed that in the current era, that the Elliott Waves may no longer operate in the time frames and sequences seen in the past, at least for the higher order waves.
    The picture I got for the next three years is not anything seen before.

  3. “Such income streams will let its purveyors seize the wealth of others (good if you like Marx) and it adapts a wide range of sexual preferences, climate, races, and national heritages. OK, religions, too, as ISIS and other militarizers of Faith demonstrate.”

    The thing is, all these “potential income streams” are transitive, and will not be tolerated under communism. [‘Can’t remember if it was Marx or Lenin] who said words to the effect:

    Guns are bad — until WE have the guns.

    The same applies to sexual deviations, the politics of climate change, racism, national heritage & history, and religion. The intrepid Socialist will use any “hot button issue” to further their agenda, but historically, they eliminate all the pawns who espouse these issues, once they’ve gained a level of power which ensures their ability to hold said power. Ask gays how they fared in Nazi Germany or the USSR — Oh wait, you can’t, because none survived. How ’bout those adherents to any deity-based religion in China? Good luck finding any, outside the reeducation camps.

    THESE THINGS aren’t actual issues. They are means to an end — specifically OUR END as a place where private property owners and independent thinkers can (or at least could) flourish. Once we bow to Father Karl, ALL these issues will be magically disappeared, because they are all “destabilizing influences” and if allowed to continue, would become destabilizing influences to our newfound Socialist Utopia…

    The socialists are much more efficient than we. They won’t waste time on reeducating the masses, not when a 3¢ bullet fixes the problem instantly and permanently.

  4. I STILL like the idea of a “toy hauler.” This is an RV (usually a Class-A Motorhome) with a functional garage in the back, used to haul a racecar + everything needed to service or rebuild it. IMO a 42-foot RV with a high-mileage vehicle in the back may be the ultimate RVing or BOV…

    • Absolutely; if you know something bad is coming down, and you want to load up family and pets, and some belongings, why isn’t this the ultimate BOV? They are very roomy, and can be outfitted exactly for that. Also, there are places to sleep, be able to cook food, use the restroom, and wash up.

      • Problems with a toy hauler:

        They use lots of fuel.
        They have few off-road capabilities.
        They may or may not have to stop at scales/weigh stations.
        If something breaks, the towing and repair charges are horrendous.
        They are very visible.
        Parking may or may not be a problem, depending on location.
        Their ability to handle and evade is negligible.

        Other than that, they can be useful and fun. Just make sure that your toy being hauled can avoid all of the above limitations, and be prepared to abandon the vehicle in a SHTF situation.

      • “If something breaks, the towing and repair charges are horrendous.”

        IMO this is the biggie…

        ” Just make sure that your toy being hauled can avoid all of the above limitations, and be prepared to abandon the vehicle in a SHTF situation.”

        Absolutely! I’m thinking the ideal toy is a flat-fender Jeep, or

        either a Mini Cooper drophead, ’cause with the top down you could haul stuff…


        A Volkswagen Caddy diesel.

        To turn the Jeep into a tender, you’d have to build bolt-on racks, to enable it to carry 4×8 sheet goods.

        The Mini would be a bunch of fun as a tender vehicle but you’d have to fab racks for it, also.

        The Caddy (or Rabbit Pickup) already has the cartage down, but with stock suspension and stock engine its neither fun, nor is it agile or nimble, and [it is] especially not fast. It DOES get insane mileage though and will burn pretty much any oil you can pour in it.

        The flat-fender is also not fast. Mine would do about 48 mph, flat-out on a level. However, the CJ-2A was an M38A1 military jeep with a civilian title. My CJ-2A had the waterproof ignition and spark plugs of the M38, so with a fabbed snorkel and a breather on the fuel cap, it would (theoretically) drive completely submerged. It would also climb an 8/12 loose sand hill.

        With all of ’em: Tweak the engine bay carelessly – lose the EMP resistance…

        The Jeep and Mini are both under 11 feet long, the Caddy is over 14 feet. The more toy you haul, the less living space you have…

  5. George et al,
    Something I have been wondering about since US History / Western Civ classes in high school, if the government is creating non-precious metal representations of money, how can that be equitably distributed? The people who mine silver etc. could bring the metal to the mint for striking into coins, but if someone had other employment, how –physically– would the money come to them? Who would determine what was equitable for a particular job/action/item for the disbursement of money?

    • “What’s it worth to you” and electronic banking. Precious metals are no different than a bag of marbles or a big stack of baseball player cards.

      I have no platinum, don’t need any platinum, and wouldn’t know what to do with it if I did have it. For all intents and purposes, it’s worthless to me.

      Not sure precious metals are relevant anymore. Large stores had national value but there is so much secrecy surrounding the hordes and conspiracies about if they are real or corrupted, encumbered to multiple buyers… Wages and personal debts are based on market forces and agreed upon terms with local banks. These banks borrow money using agreements with central banks, who in turn do the same with the Federal banks and Treasury. The Fed and Treasury set the standards and enter agreements with the World Bank using assumptions about the national economy and tax revenue. Nations are kept honest by the World Bank. Remember a few years ago the mortgage scandal where the paperwork was eliminated by a centralized data system (MRIS?) and the banks couldn’t prove you owed a mortgage? The scenario is the same with electronic and world banking.

      For the great reset, the World Bank would determine the nations with the least assets, and deflate all nations by an equal amount that would take the poorer nations to zero worth. Fractional banking in reverse or an international haircut or jubilee as it were. Like a mortgage refinance, nothing tangible changes, all of the proportions are the same, but magically the banks have another 25% or so monetary resources available to keep the Monopoly game going. We could solve the drug trade problem the same way by taking large bills out of circulation — raising the value of the remaining cash and bankrupting any businesses that could not trace their assets electronically.

      Economies continue during wars. They don’t do so well during power and internet failures.

  6. Here is a good commentary from DL:

    In that video from Prechter I mentioned, he also mentioned regime change in the near future as being on the table. I bring up situational bias, because from my viewpoint, that appears to have already happened in the back rooms of the American political control apparatus. The question is how fast the changes will come on mainstreet. Biden is already back-pedaling on a wide variety of progressive lunacy, even as Pelosi proclaims the success of the revolution. Meet the new bosses, same as the old.

  7. Quite simply no . But look after the recipe section today whatever you reckon . Me I’m just a war , crash , USD , deflation type of guy . Any order don’t care but the hyper stuff is miles away . Stick with a nice steak ,potato salad and crusty bread . And a couple of beers

  8. Sounds like the #1 highway will be blockaded at the eastern and western provincial borders to non-essential travellers as neighboring provinces try to get a handle on covid varients. So folks with 3 season getaway cottages just across the eastern border are kind of out of luck for driving to/from their properties in the foreseeable future.

    Some joker, not a Jester to be sure, noted in comments of a CBC report that a Winnipeg billionaire family had circumvented roadblocks by reaching their off-limits cottage with a private chopper. The report comments have now been closed early. Tsk, tsk.

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