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Hyperinflation Watch

James Turk
By James Turk / September 15, 2010

Inflation is coming back.  In fact, it never really left, although there was a brief moment after the Lehman Brothers collapse when it appeared that the dollar would slip into a deflationary collapse.  But after peering over the precipice, Bernanke and his central bank cohorts around the world did not like what they saw.  So pump they did, and the dollar and other national currencies have been losing purchasing power ever since.  But the loss of purchasing power is about to gain momentum.

Gold and silver are making new highs for good reason.  These market developments are important.  Commodity markets are starting to move like they did back in the early 1970s because inflation is starting to worsen, which is the key observation in my comments to King World News earlier this week.

Look at what is happening in the UK for example: “UK inflation stubbornly high after surprise rise in air fares clothes and food”.  Inflation is not “stubbornly high”.  It is just getting started.

Inflationary pressures are about to hit hard because all the money printing for bailouts and stimulus programs has done little to stimulate the economy.  As a consequence, instead of being used in economic activity, all this money printed over the past few years is now heading for safety – tangible assets.  And gold and silver are the safest and most liquid tangible assets.

About the author

James Turk

James Turk is founder and chairman of GoldMoney, which provides a convenient and economical way to buy and sell gold, silver and platinum online using the digital gold currency for which he was awarded four US patents. He has specialized in international banking, finance and investments since graduating in 1969 from George Washington University with a B.A. degree in International Economics. He began his business career with The Chase Manhattan Bank (now J.P. Morgan Chase), which included assignments in Thailand, the Philippines and Hong Kong. In 1980 he joined the private investment and trading company of a prominent precious metals trader. He moved to the United Arab Emirates in December 1983 to be appointed Manager of the Commodity Department of the Abu Dhabi Investment Authority, a position he held until resigning in 1987 to begin FGMR.

James Turk has written several monographs on money and banking and is the co-author of The Coming Collapse of the Dollar (Doubleday, 2004), now available in a paperback version entitled The Collapse of the Dollar

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