VANCOUVER ( Silver Gold Bull) -- There was yet another grave defeat for fiscal/monetary sanity in the Western world.
Germany's Constitutional Court on Wednesday
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
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
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
. 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.