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

Hyperinflation Watch

James Turk 14 January, 2010

The US government’s deficit grew again in December 2009.  The difference between its outlays and receipts as presented on the following chart has now reached a new record.

In order to smooth out month-to-month fluctuations and illustrate the underlying trend, the above chart calculates the US government’s deficit using a 12-month moving average of both receipts and outlays.  The resulting gap between income and spending rose 10-out-of-12 months in 2009.  The gap, which was $62.1 billion in January 2009, nearly doubled to $122.6 billion for the month of December, the largest monthly deficit so far.  The trend – as illustrated by the two 12-month moving averages – suggests that this gap will continue to grow.

Note that while spending appears to be leveling out, receipts remain in freefall.  With unemployment continuing to rise, it seems likely that this downtrend in receipts will not reverse anytime soon.

So the US government remains on course to continue accumulating a huge mountain of debt.  One has to wonder when the breaking point will be reached.  After all, how much of the world’s savings can the US government really expect to attract?

If the US government cannot attract enough savings to meet its borrowing needs, it has to ‘print’ the dollars it wants to spend, which is of course what quantitative easing is all about.  But this printing comes with a cost, just like every episode of government currency creation throughout history.  It is the cost of inflation, and eventually, hyperinflation.

James Turk

More posts by James Turk

JAMES TURK

james_turk_blog

GOLDMONEY

GoldMoney_Inc

GET GOLDMONEY INSIGHTS

GOLD & SILVER LIVE PRICES

RECENT POSTS

  • 17 April, 2019
    0

    Heading Toward the “Tipping Point”

  • "bankruptcy 1995" revisited
    15 March, 2018
    0

    “Bankruptcy 1995” Revisited

  • 19 February, 2018
    0

    Gold’s Bull Market Enters Phase 2

FEATURED VIDEO

Categories

  • Articles
  • 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 oil Politics QE recommended silver stock market trading Trump usd us dollar Washington

MONEY BUBBLE

the_money_bubble_james_turk

COLLAPSE OF THE DOLLAR

collapse_of_the_dollar_james_turk

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

  • Heading Toward the “Tipping Point”

    In an article last year entitled “Bankruptcy 1995 Revisited”, I presented a

    17 April, 2019
  • "bankruptcy 1995" revisited

    “Bankruptcy 1995” Revisited

    In 1992 a book entitled “Bankruptcy 1995: The Coming Collapse of America

    15 March, 2018

RECENT TWEETS

  • It’s a gold bull market. Even with yesterday’s takedown year-to-date performance is spectacular: gold +14%, silver… https://t.co/5g7iRHSEWx

    5 days ago
  • Not a good start for the US gov’ts new fiscal year. Its 1st month recorded a $134b deficit but debt in Oct actually… https://t.co/qClmtWkZhA

    4 weeks ago

TAGS

bitcoin bonds central banks currencies debt dollar doug casey ecb economy euro fed gold greece hyperinflation inflation markets mining stocks MMGA oil Politics QE recommended silver stock market trading Trump usd us dollar Washington
Copyright © 2001-2016 Free Gold Money Report | All Rights Reserved
  • Briefcase
  • Contact
  • FGMR
  • GoldMoney
  • James Turk
  • The Collapse of the Dollar
James Turk Blog