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

US is on the road to hyperinflation

James Turk 4 May, 2009

I have explained in recent letters why I believe the US is on the road to hyperinflation. I think the writing is on the wall, but we will of course only know for certain in the weeks and months ahead.

Nevertheless, there are important clues we can be watching to get advance warning that the US is indeed headed for hyperinflation. Here are five key flash points to be watching for.

1) T-note yields plow through resistance in the 3.12%-3.15% area as buyers start focusing on higher yields to offset the risks of perceived inflation.

2) The gold/silver ratio drops below 67, signaling that money is moving into the precious metals seeking safety from the growing inflationary risk.

3) The XAU Index climbs above resistance in the 134 area. The market for gold mining stocks (like the silver market) is not as deep as it is for gold itself, and is thus more sensitive to money flows. Therefore, the mining stocks (like silver) lead gold.

4) Gold exceeds $1,000. As noted in the preceding article, gold is the ultimate ‘canary in the coalmine’. Higher inflation is always preceded by a higher gold price – always.

5) Federal spending continues to explode. Remember, hyperinflation invariably occurs for only one reason. It results from too much government spending that leads to too much government borrowing. These debts are then turned into currency by the government’s captive central bank, which describes exactly what is happening in the United States today.

Watch for these events to occur. Some are ongoing – like a rising gold price and growing federal spending. Some are precise points, like the XAU hurdling above 134. But regardless, they all serve the same purpose. They all signal a growing problem with inflation, and indeed, all of these events need to occur to confirm that the US is on the road to hyperinflation.

As noted in the last letter, I will continue to feature this ‘Hyperinflation Watch’ section in future letters. It is critically important to see whether the federal government gets off this road, or whether it heads over the cliff. Right now it is headed for the cliff, and picking up speed along the way.

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

  • A good article worth reading. A #Tether collapse of course doesn't impact the foundational structure of BTC but it… https://t.co/Efa8TzTEyE

    3 days ago
  • RT  @Goldmoney : Discover Totenpass – The new paradigm in the permanent storage of precious digital data. News Release: https://t.co/Fm63r6…

    5 days 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