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.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV