Our professional money managers and economic experts are trapped. The lesser of two evils, rabid inflation is preferable to a Destroying Deflationary Depression. Currency printing whether through the printing press or, by simple key strokes on central bank computers, delivers the same result…Legendary Hyperinflation. Mr. Volker, where are you when we need you so badly?”- Traderrog

Wikopedia’s Free Enclyclopedia Tells Us:

Economics, hyperinflation is inflation that is "out of control," a condition in which prices increase rapidly as a currency loses its value. No precise definition of hyperinflation is universally accepted. One simple definition requires a monthly inflation rate of 20% or 30% or, more. In informal usage, the term is often applied to much lower rates.

“The definition used by most economists is ‘an inflationary cycle without any tendency toward equilibrium.’ A vicious circle is created in which more and more inflation is created with each iteration of the cycle. Although there is a great deal of debate about the root causes of hyperinflation, it becomes visible when there is an unchecked increase in the money supply or drastic debasement of coinage, and is often associated with wars (or their aftermath), economic depressions, and political or social upheavals”-Wikopedia

A 500,000,000,000 (500 Billion) Yugoslav Dinar Banknote Circa 1993.

“This currency example of Hyperinflation from Wikopedia, is the most extreme example we could find in our research. Yugoslavia suffered greatly with currency debasement and its nasty companion, civil war. Note that this event was only 14 years ago. Will the western and G-7 nations find the identical fate? Let’s hope not but they are all printing furiously.”- Traderrog

Most Famous Hyperinflation Occurred In Germany in 1923-1924

Inflation 1923-24: A German woman feeding a stove with currency notes, which burn longer than the amount of firewood they can buy.

Inflation 1923-24: A German woman feeding a stove with currency notes, which burn longer than the amount of firewood they can buy.

“The main cause of hyperinflation is a massive imbalance between the supply and demand of a certain currency or type of money, usually due to a complete loss of confidence in the currency similar to a bank run.

URL: http://www.kitco.com/ind/Wiegand/oct112007.html

Hyperinflation is generally associated with paper money because the means to increasing the money supply with paper money is the simplest: add more zeroes to the plates and print, or even stamp old notes with new numbers. There have been numerous episodes of hyperinflation, followed by a return to "hard money". Older economies would revert to hard currency and barter when the circulating medium became excessively devalued, generally following a "run" on the store of value.

Unlike inflation, which is sometimes seen as a necessary evil in a healthy economy, hyperinflation is always regarded as destructive. It effectively wipes out the purchasing power of private and public savings, distorts the economy in favor of extreme consumption and hoarding of real assets, causes the monetary base whether specie or hard currency to flee the country, and makes the afflicted area anathema to investment. Hyperinflation is met with drastic remedies, whether by imposing a shock therapy of slashing government expenditures or by altering the currency basis” -Wikopedia

Read Carefully About Hyperinflation’s Aftermath For Clues to Protect Yourself and Your Family.

“Loss of confidence means a bank-run. Useless, valueless, fiat paper cash causes a return to HARD MONEY AND BARTER. HARD MONEY IS GOLD AND SILVER. BARTER IS PURE OLD FASHIONED TRADING-MY GOODS FOR YOUR GOODS.” Traderrog

Gold and Silver Have Barely Scratched

The Surface of True Values

“If gold and silver were fairly adjusted for inflation, gold would be over $2,000 per ounce, not just $740. Silver, instead of being valued at $13.33 per ounce would be nearly $25. Some traders and investors view gold’s forthcoming top at $873 and silver’s at $50 based upon non-adjusted inflation valuations in 1979-1981. Watch what comes next in the on-going gold and silver bull market of the century. We are only in the 3rd or 4th inning. The outcome will be truly astounding!” - Traderrog

We wanted our readers to clearly understand what is happening to international currencies and their devaluation by over-printing. Russia prints at the rate of +50% annually. The United States is shoveling it out between 11% and 14%. Asian central banks produce new cash at rates between 12% and 20%. Where do we suppose this all ends? The ending is cast in bronze and it will not be a happy event. Review history and watch what our leaders do not what they say.

Your only conclusion is to eliminate debt, buy and trade gold and silver investments and most of all become an independent thinker and leader. Take care of yourself, your family and your friends. Most of them will not believe these ideas so move quietly to take charge and guarantee your future and theirs. Not only can you protect what you have, but you’ll move swiftly to increase your holdings and might even become wealthy in the process. Good luck and good trading! - Traderrog

Roger Wiegand