James Turk BlogJames Turk BlogJames Turk BlogJames Turk Blog
  • Blog
  • About
    • About FGMR
    • James Turk
    • GoldMoney
  • Books
    • Money and Liberty
    • The Money Bubble
    • The Collapse of the Dollar
Next Previous

Hyperinflation Watch

James Turk 15 June, 2010

June 15, 2010 – The latest financial results of the US government show that it continues to spend and borrow recklessly.  As a consequence, there has been no improvement in the hyperinflationary outlook for the US dollar.

Hyperinflation results when a country’s central bank turns government debt into more currency than is demanded in economic activity.  It is unfortunately impossible to measure precisely the demand for currency.  Nevertheless, the rate at which the government is borrowing can be used as a general guideline to determine if too much currency is being created.

If government borrowing causes the debt to accumulate at rates of increase greater than the historical trend, clearly too much new debt is being added, which forces the central bank to ‘print’, i.e., turn that debt into currency.  I have discussed this phenomenon before.  “The [Federal Reserve] has one mission.  It is to make sure that the federal government obtains all the dollars it wants to spend.  If the federal government cannot attract these dollars from the world’s savings pool, then there is only one other way to obtain them.  The Fed must print them.”

The following chart illustrates the worsening problem.

Federal revenue remains stagnant, indicating that the economic recovery is weak at best.  At the same time, federal spending is not contracting.  Therefore, the gap between income and outlays remains near record levels.  New debt continues to be piled upon existing debt.

The once-almighty US dollar – that only a few decades ago was considered to be ‘as good as gold’ – continues down the road toward hyperinflation.  All that is needed to ignite the hyperinflationary bonfire is a small spark.

James Turk

More posts by James Turk

JAMES TURK

james_turk_blog

GOLDMONEY

GoldMoney_Inc

MONEY AND LIBERTY

collapse_of_the_dollar_james_turk

MONEY BUBBLE

the_money_bubble_james_turk

COLLAPSE OF THE DOLLAR

collapse_of_the_dollar_james_turk

COMING COLLAPSE OF THE DOLLAR

collapse_of_the_dollar_james_turk

GET GOLDMONEY INSIGHTS

GOLD & SILVER LIVE PRICES

@FGMR RECENT TWEETS

  • Flight out of #USD picked up momentum today. #US #Dollar Index finally sliced thru 102, but not yet oversold. Now h… https://t.co/lmAjCkTu18

    4 days ago
  • The #US #Dollar Index is hanging over the edge of a cliff. Is this the week it takes a tumble? Or does it hold 102… https://t.co/7UsxODumnX

    7 days ago

FEATURED VIDEO – July 8, 2022

FEATURED VIDEO – January 10, 2022

Categories

  • Articles
  • Books
  • Briefcase
  • Gold
  • Gold News
  • Market Commentaries
  • Silver
  • Trading
  • Uncategorized

TOPICS

bitcoin bonds central banks currencies debt dollar doug casey ecb economy euro fed gold greece hyperinflation inflation markets mining stocks MMGA money oil Politics QE recommended silver stock market trading Trump usd us dollar Washington

ARCHIVES

  • You may also like

    “Bankruptcy 1995” Revisited

    Read now
  • You may also like

    Hyperinflation Watch

    Read now
  • You may also like

    Hyperinflation Watch

    Read now
  • You may also like

    Hyperinflation Watch

    Read now
  • You may also like

    Hyperinflation Watch

    Read now

ABOUT

FGMR My objective is to share with you my views on gold, which in recent decades has become one of the world’s most misunderstood asset classes. This low level of knowledge about gold creates a wonderful opportunity and competitive edge to everyone who truly understands gold and money.

RECENT POSTS

  • The Forgotten Fourth Function of Money & G-SIBs

    Money is routinely defined by what it does, rather than what it

    13 December, 2022
  • A Century of Fascism

    In 1922 Benito Mussolini became prime minister of Italy, putting that country

    31 August, 2022

TAGS

bitcoin bonds central banks currencies debt dollar doug casey ecb economy euro fed gold greece hyperinflation inflation markets mining stocks MMGA money oil Politics QE recommended silver stock market trading Trump usd us dollar Washington
Copyright © 2001-2022 Free Gold Money Report | All Rights Reserved
  • FGMR
  • GoldMoney
  • James Turk
  • Money and Liberty
  • The Collapse of the Dollar
James Turk Blog