Under "normal" circumstances, asset prices drift in a "random walk" upwards.
Asset prices drift upwards over time, due to inflation. Asset prices move randomly around an ever-increasing mean, because money supply inflation doesn't uniformly lead to price inflation.
Look at a gold or silver price chart for the past few weeks. The FRN-denominated price of gold and silver is increasing nearly every single day! Instead of a "random walk", gold and silver prices are going straight up!
On Monday, silver set a new all-time FRN-denominated high. That eclipsed the Hunt Brothers peak of $49.50/oz. The record was set before the NY open. The "conspiracy to suppress the silver price" rapidly pushed the price down around the NY opening time.
Why is silver rising more rapidly than gold? Central banks and government still have large gold reserves. They can periodically sell some reserves to suppress the price. There are practically zero silver reserves. Therefore, silver prices rise more rapidly during times of high inflation.
The Federal Reserve is still inflating to bail out the banksters. The Fed Funds Rate is 0.25%, while true inflation is 20%-30% or more. If you look at silver for the past year, true inflation might be much higher than 30%.
When the Federal Reserve creates money, it isn't immediately spread uniformly throughout the economy. It's spent on whatever banksters feel like buying. Mortgages are still "discredited". Banksters are buying other things. That leads to the possibility that housing prices keep declining while food prices and gasoline prices are skyrocketing.
That's the reason Ben Bernanke can say with a straight face "Inflation is low! Duh!" He's referring to housing prices. His bankster friends are still begging for inflation to bail out their underwater mortgages. Inflation is low, if your inflation measure excludes everything rising in price.
Asset prices "normally" follow a "random walk". Prices trend upwards, but there's variation around the trend.
The recent price trend for gold and silver is very disturbing. Instead of moving somewhat randomly with upward drift, gold and silver prices are going straight up. It's a sign of hyperinflation, when the FRN-denominated price of gold and silver rises almost every day.
Tuesday, April 26, 2011
Signs Of Hyperinflation - Gold And Silver Prices
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5 comments:
Uncle Ben has a nice beard.
Come on, let it be. Don't you long for hyperinflation? It will end the current communist-fascist regime. Ultimately, the hyperinflation is the triumph of hard money.
Your stocks will go moderately higher, not like your Gold ETF shares. The only problem with Gold ETF however will be that all they hold will turn out to be a whole lot of gold-plated tungsten. This too, is fitting I think, as the fake supporters of hard money, those that say they do, yet keep their money in "modern financial instruments", will find they were the first and only ones of those who have had successfully boarded the lifeboat,
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SPOILER SPACE
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SPOILER SPACE
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SPOILER SPACE
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SPOILER SPACE
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.........except it was the wrong lifeboat, the one conveniently offered to them to reduce the prices for those slowly boarding the real lifeboat.
Not Related:
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^^^^^^ get a life
My eCPM from AdBrite is a pretty lame $0.50.
What is the equivalent Bitcoin-based rate? I'd only accept Bitcoins if I could easily convert to FRNs or silver or gold.
Is there a bitcoin advertising program?
I've been considering shopping around for other advertising options. I made a search after AdSense dropped me and concluded AdBrite was the next best alternative.
I considered "project wonderful", but I don't have a PayPal account.
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