This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

German Court Caves in to Euro-Zone Hyperinflation: Opinion

VANCOUVER ( Silver Gold Bull) -- There was yet another grave defeat for fiscal/monetary sanity in the Western world.

Germany's Constitutional Court on Wednesday rubber-stamped the suicidal plan to engage in "unlimited bond-buying" in the euro zone (i.e. monetizing debt) in order to temporarily prevent all European bond markets from cascading defaults.

The cost of this monetary insanity (and reckless betrayal of the European people) is nothing less than a commitment to hyperinflation.

None of Europe's deadbeat debtors have any savings (including Germany itself). Thus every euro spent on these extravagant bond purchases will be printed out of thin air.

This "unlimited bond-buying" is apparently also going to extend to soaking up more of the financial feces that continue to accumulate on the balance sheets of the ultra-fraudulent big banks.

Thus what we have is a massive increase in the money supply, with 0% going toward any productive economic use, and 100% going toward doing nothing but soaking-up worthless banker-paper.

With zero economic benefit from all of this massive money-printing which is on the way, this is pure currency dilution and thus ultra-inflationary.

As a matter of the simplest arithmetic/logic, with Europe's governments committed to "unlimited" quantities of an ultra-inflationary policy, the only possible result is hyperinflation.

What makes this such a devastating defeat for sanity is Germany is the one nation in Europe that still possesses a cultural memory of the economic phenomenon known as hyperinflation. This is a result of the German hyperinflation experienced by the Weimar Republic in the 1920s.

Despite this episode of history being nearly a century old, the economic carnage and suffering that results from such folly has been burned into the German psyche, through parents warning their children of the perils of reckless money printing.

As part of this "cultural memory" Germans alone among all the peoples of Europe still have a strong attachment/affinity for silver. This is because silver is the people's money . When the German's banker-paper turned into toilet paper in the 1920s those who had the foresight to swap their banker-paper for silver before that occurred survived. Those who didn't had to rely upon charity...or they simply didn't survive.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,672.60 -141.38 -0.79%
S&P 500 2,051.82 -11.33 -0.55%
NASDAQ 4,757.8790 +7.4820 0.16%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs