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Message: On pace for hyperinflation

I am certainly not saying we are in Weimar at the moment. I am saying that it is baked into the cake.

A study of the numbers in Turroni's The Economics of Inflation - A Study of Currency Depreciation in Post War Germany will show you that their money supply grew at rate so as to double roughly every two years from 1914 to 1918. The whole time, prices barely moved. Then, suddenly, in 1919, consumer prices jumped 500%. From there, velocity of money increased as panic set in, and there was no escape.

The price of gold dropped 60% on two occasions during their hyperinflation. That did not change the fact that their currency was destroyed. Cash may be doing well at this particular moment, but you do not want to be holding that grenade when it comes.

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