Like a deadly cancer, it’s growing and intensifying. And we are nearing the tipping point.
James Rickards –
"The Fast Track From No Inflation to Runaway Inflation"
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(Image source)
– Flash Points –
1 – A currency crisis is inevitable.2 – The crisis will result in a total loss of confidence in the US dollar.
3 – Inflation is already here – growing like a cancer.
4 – Central banks will soon lose control.
5 – Soon afterwards, we will all realize that we too have no control.
– Synopsis –
The economy is in crisis, but the Federal Reserve’s only solution is to throw more money at it. Those foolish money-printing policies might destroy confidence in the US dollar.
Confidence, or Lack Thereof
The dollar and all other fiat currencies have no inherent value, only assumed value. And they can maintain that value only as long as we remain confident in the currency.
Inflated Bubble = Inflation
Nevertheless, while we may not yet be experiencing consumer-price inflation, we are certainly experiencing asset-price inflation. Plenty of it. The stock, bond, and real estate markets are all at dizzying, nose-bleed levels. They’re in wildly inflated bubbles. That’s inflation.
Eventually, inflation will also hit consumer prices. Nobody can say when that will happen, but it’s unavoidable. And when inflation hits, it will most likely spin out of control.
The 4 Stages of Money Illusion
Inflation will come through 4 stages of what Rickards calls the “money illusion.”
1 – The “Feel-Good” Stage – Central banks print more money. It starts to trickle into the economy. We receive some of it, and think that we are getting richer. 2 – The “Have-It-Under-Control” Stage – We notice that prices are getting higher. But we believe that all remains well. We trust that the central bank knows what it’s doing, and that it will never allow the situation to get out of control. 3 – The “Uh-Oh” Stage (so named byShock or Hyper-Shock
It’s not. (Image source)
– Insight from Outside –
As James Rickards outlines so clearly, inflation is already here. Like a cancer, it may not be noticeable. But like a malignant cancer, it’s growing and intensifying. And we are nearing the tipping point.
1 Pizza for the Price of 10. Woohoo!
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