Thursday, September 26, 2013

The Danger of Currency Hyperinflation

One thing is certain in life, besides death and taxes, and that is if you expand the quantity of money prices eventually rise; or more accurately the purchasing power of debased money falls. The problem is how to measure currency debasement, and this has been a topic of heated debate since fiat currencies first developed. This has led me to propose a new measure of money, which at James Turk’s suggestion I am calling the Fiat Money Quantity (FMQ). The purpose is to gives us a measure of fiat money that enables us to assess the danger of currency hyperinflation.

- Source, ALASDAIR MACLEOD of James Turk Gold Money:

Thursday, September 19, 2013

Gold Will Finish 2013 at $1675 or Better

James Turk remains extremely bullish on the yellow metal and for good reason. 

Turk believes gold will finish positive for the year and that this will be the 13th winner in a row. Perhaps he’s a bit overly optimistic, but he’s been right twelve years running and that’s good enough for us. He’s still seeing extremely powerful Asian buying, with China picking up Indian slack and we are heading into the strong gold buying season. Indian brides are happier when showered with gold.

Click Here to Listen to the FSN interview with James Turk

- Source, The Silver Doctors:

Sunday, September 8, 2013

A Run on the Bank

This is a run on the bank, Eric ... You had inventories (of physical gold and silver) on the COMEX climbing for years. And now all of the sudden, over the past 8 months, they've taken this huge nosedive.

The gold is being withdrawn from the warehouses because it’s not being valued properly in the West. And it’s being shipped to the East where it is being valued properly. People in the East understand gold is very undervalued and it serves a very useful purpose at this time -- the fact that it’s money outside of the banking system.

- James Turk via King World News:

Monday, September 2, 2013

Governments Think They Have a Recovery

US consumers are more responsive to confidence in stock markets and property prices than in the UK, and here the news has been bullish. Interest rates are low, and they will rise, so buy those big-ticket items now. The cost of buying and financing the average house purchase has already risen an estimated 40%.

Governments and economists will think they have the recovery they have wished for. Unfortunately it will almost certainly be marred by price inflation greater than the increase in demand suggests. So while nominal GDP growth rates will turn out to be somewhat better than currently expected, the talk will be of temporary capacity constraints.

The end result is that while central banks will realise that price inflation is a growing problem they will be reluctant to use higher interest rates to choke off inflation. And if consumers see central banks are behind this curve, further consumer borrowing will be encouraged.

- Alasdair Macleod of James Turk's Goldmoney: