Wednesday, May 15, 2013

This is Going to Lead to Hyperinflation

"My view is that we are in a fiat currency bubble, in other words currency backed by nothing. If you look at history, whenever you have these kinds of periods where people think they can come up with some new kind of currency, it’s absolutely crazy some of the harebrained schemes (people come up with).

What we have now is another harebrained scheme that says currency can be backed by nothing except government promises. But when you take gold out of the monetary system, what monetary history always shows is that you remove the monetary discipline from government spending.

We are in an environment now where the government is spending more and more money, borrowing more and more money, the central bank is turning that money into currency, and eventually this is going to lead to hyperinflation...."

- James Turk via a recent King World News interview, read the full interview here: