The Phaserl


Precious Metals in a High Inflation World

by Jeff Nielson, Bullion Bulls Canada:

We already live in a “high inflation world”. The inflation statistics of corrupt, Western governments are beyond absurd. With food and housing costs spiraling higher at the greatest rate in modern history, we’re told that “inflation” is supposedly near zero. The criminal central bankers even lament that inflation is “too low”, despite the fact that as an economic cancer, inflation can never be too low – only too high.

The subject matter of this commentary thus refers to a change in attitudes/beliefs, to a time when the majority of people see through these statistical lies, and perceive that we live in a high inflation world. As readers will see, such attitude changes will have far-reaching consequences, consequences which have not yet been envisioned by other writers or corporate entities.

Naturally, nowhere will such a change in attitude be reflected more dramatically than in the precious metals sector. Knowledgeable readers understand that gold (and silver) is our “canary in the coal mine”. These precious metals are supposed to alert us – via rising prices – any time there is financial/economic uncertainty or monetary turbulence. In particular, as monetary metals, gold and silver warn us about inflation, by exactly mirroring the level of monetary debasement.

It is for precisely these reasons that the banking crime syndicate has been serially suppressing gold and silver prices, for decades. They do this to hide the economic carnage from their financial mega-crimes, and to conceal their debauchment of our paper, fiat currencies to literal worthlessness. By holding down prices, the central bankers pretend, year after year, that there has not been a massive debasement of these fraudulent currencies.

The starting point in such an exercise is to explain and define when such a change in attitude will take place. Regular readers already understand that this banking crime syndicate, known as “the One Bank”, already exerts a tight choke-hold over not merely all of our markets, but our entire economies, as well. It is only through the manipulation of markets, the perversion of economic statistics, and control of government policy that this crime syndicate has been able to prevent the implosion of its crime empire – and our economies with it.

This implosion is now imminent, for several reasons:

1) Western governments are now not merely insolvent, they are bankrupt. Indeed, Greece begged the ECB to be allowed to declare bankruptcy. It was prevented from doing so, because such a declaration would have set off a wave of bankruptcies which could only result in a full Debt Jubilee. Thus its economy was force-fed large amounts of additional debt, to temporarily delay this inevitable default. The fiscal status of other Western regimes is little better.

2) Western markets, in particular bond markets and real estate markets, have been manipulated to all-time, bubble-highs. Illustrating the rampant fraud in Western bond markets, we now see “negative interest rates”, something utterly impossible in any legitimate financial system: borrowers literally stealing from lenders/savers. With bond prices being inverse to interest rates, this means that Western bond prices are above their maximum, theoretical price.

3) Western economies have continued to weaken and degenerate since the Crash of ’08. The claims (by Western governments) that these economies have been “recovering” is more, pure statistical fraud. This Greater Depression has now degenerated to such an extreme state that a severe economic collapse can no longer be delayed more than a matter of months (weeks?).

There are far more indicators of imminent, Western economic collapse, but that is not the focus of this piece. Suffice it to say that a dramatic change in our economic paradigm is both near at hand and absolutely inevitable. The ensuing economic carnage will include, among other things, an exponential increase in inflation – i.e. a hyperinflation spiral.

As the real rate of inflation spikes higher from already extreme levels, it will become absolutely impossible for our corrupt governments and central banks to continue to deny its existence. Attempts to do so would/will only shatter the dwindling, remaining trust in these entities, thus some acknowledgment of this inflation spiral is inevitable.

Either before or concurrent with such a mea culpa, we will see the One Bank’s choke-hold over the precious metals sector also be shattered. Suppressing precious metals prices in what is perceived to be a low-inflation world is feasible. Suppressing precious metals prices in a high-inflation world is not. Thus, at roughly the same time, we will see both official inflation statistics start to soar higher and gold/silver prices catapulting toward their fair-market value.

It is important that readers understand that these two events must occur more or less concurrently. It is this simultaneous evolution which will produce the economic/market dynamics which we will soon see.

The most obvious change is simple: we will see soaring demand for gold and silver, across the full spectrum of our societies and economies. People who had previously been blinded to the rapid erosion of any wealth denominated in fiat currencies will quickly become aware of gold and silver’s eternal capacity to shield us from banker-created inflation.

Readers with an understanding of economics know that as real “money” (i.e. a store of value), gold and silver protect our wealth from inflation outside of our corrupted monetary system, and thus beyond the reach of the banking crime syndicate. No other asset class can come close to fulfilling this function as well.

Historically, real estate has also been used as an inflation shelter. However, as already mentioned, Western real estate markets have been deliberately manipulated to extreme, bubble levels. As grossly overvalued assets, their value can only fall from such extreme levels (in real dollars), and thus real estate can provide very little protection from the approaching inflation spiral.

Other commentators have also concluded that we will see a similar economic future in the near term. However, what these other writers have failed to grasp, and thus failed to factor into their analysis is that the behavioral changes we are about to see will not be confined to individuals. Corporations will also (finally) perceive this high-inflation world, and their behavior will also change radically as a result.

As these corporations see their operating capital being devoured by inflation, they will take dramatic steps to reduce the severity of their financial bleeding. For those readers who are skeptical of seeing such a change, one word will suffice as a rebuttal: Denmark.

Denmark was one of the first Western regimes to impose criminalized, “negative” interest rates on its economy and population. Its interest rates are more deeply negative than any other regime. And its corporations have reacted strongly to this attack/drain on their operating capital.

Among other measures, Danish businesses took the unprecedented step of beginning to pre-pay their corporate taxes, in ever-growing amounts. Indeed, the corporate trend toward pre-paying taxes was growing so rapidly that the Danish government had to impose strict limits on how much corporations are allowed to pre-pay. The salient fact here is that Big Business resorted to such extreme measures in response to their operating capital being eroded at the modest rate of 1 – 2% per year. What will happen when these same corporations perceive the real rate of inflation?

Currently, inflation in Western economies is already soaring higher at 10+ % per year, a quantum roughly ten times greater than Denmark’s negative interest rates. When the hyperinflation spiral begins, and the banking crime syndicate (simultaneously) loses its capacity to hide this ultra-high inflation, the inflation rate will no longer be roughly 10% per year, but closer to 1 – 2% per day.

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