Not your mother’s inflation…

Why this is the time to invest in precious metals

Not your mother’s inflation

Personally, I am more interested in the mechanics of inflation and the compelling charts in this article than I am in a thesis for precious metals. Silver maybe, but gold is only fractionally about inflation.

But the article, which I am only in the middle of, gives some great macro parameters with which to form your own inflation strategy. The modern Fed and its newfangled MMT (modern monetary theory) TMM (total market manipulation) must have a termination point. Either that or an acceleration point, onward to Stagflation or dare we think, el-Hyper?

Anyway, check out the article. Some nice (and scary) data and graphs.

From the article:

Entirely different from today, the government and institutions of the 1970s were fully cognizant of the risk of inflation becoming an uncontrollable problem. Here is what Richard Nixon wrote two years after announcing the end of the gold standard:

“…everything that the government gives out with one hand it must take back with the other, in higher taxes or more inflation or both. Spending proposals must be looked at in this way, by asking whether they are worth either of these costs. Much government spending fails this test.”

Today, in contrast, the most common refrain we hear from policy makers is that they have not done enough. Therefore, we shall proceed with at least $120 billion/month of QE, 0% interest rates, and 12% government deficits relative to GDP. The macro imbalances today are extreme, and the ultimate inflationary consequences of years of reliance on ever greater monetary and fiscal stimulus as the primary policy tools to solve economic problems are inescapable.

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