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When Prices Make No Sense

Ultimately, in any hyperinflation paper currencies become effectively worthless. In other words, the difference in "value" between, for example, a $10 bill and a $1000 bill shrinks smaller and smaller, eventually disappearing completely as both become worthless.

This directly implies a world of prices which are almost totally nominal/arbitrary -- i.e. without any meaning. What is the "correct price" for a loaf of Monopoly money? We immediately recognize that the question is absurd.

It's no different than asking what the "price" of a loaf of bread is in terms of grains of sand. As with U.S. dollars, the grains of sand can be obtained in infinite quantities, and at zero cost.

As I have explained previously, these parameters alone mean (as a matter of arithmetic) that the U.S. dollar must be already worthless .

As our financial system spirals relentlessly toward some form of hyperinflationary point of no return and as the prices of assets become steadily more nominal, arbitrary and unreal, manipulation of markets and asset prices becomes steadily easier rather than more difficult.

Why are U.S. Treasuries at the "highest prices in history" when the U.S. government has never been less solvent, much more supply is being dumped onto the market than at any other time in history, and all of the world's other struggling governments no longer have any surplus funds to buy this overvalued paper?

Together, those three parameters clearly dictate U.S. Treasuries should be at their lowest prices in history -- meaning U.S. interest rates should be at their highest rates in history today.

Of course, with more than $15 trillion of outstanding debt this would instantly vaporize the U.S. economy, consuming more than 100% of tax revenue in interest payments alone.

Thus manipulating Treasuries prices is Job #1 for the U.S. government and the banking cabal whose paper empire is built atop this Ponzi scheme.

Why are gold and silver prices seemingly stuck in more sideways trading; just as the printing presses on both sides of the Atlantic explode in a new frenzy of open-ended money printing?
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