James Turk BlogJames Turk BlogJames Turk BlogJames Turk Blog
  • Blog
  • Videos
  • 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
“James Turk’s background is in banking and asset markets, not academic economics where careers are made on the promotion of institutional dogma often divorced from reality. This practical stance informs his book throughout, with much material that gets to the heart of the matter, and has stood the test of experience. Money and Liberty delivers plenty of core knowledge, from a practitioner involved in these topics for decades.” Forbes

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

SEE RECENT @FGMR TWEETS

Visit @FGMR

FEATURED VIDEO – March 21, 2025

MORE VIDEOS

Categories

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

TOPICS

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

ARCHIVES

  • You may also like

    Heading Toward Another U.S. Government Default

    Read now
  • 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

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

  • Whether Inflation or Deflation, Gold Wins

    In January 1934, the dollar was devalued against gold by 69% when

    24 January, 2025
  • How To Make America Great Again

    If I were advising President Trump, here are the recommendations – with

    14 November, 2024

TAGS

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