Not Your Father’s Inflation…”“What we see at present is a battle between the central banks and the collapse of the financial system fought on two fronts.”

Monday, August 17, 2015
By Paul Martin

SilverDoctors.com
August 17, 2015

“What we see at present is a battle between the central banks and the collapse of the financial system fought on two fronts. On one front, the central banks preside over the creation of additional liquidity for the financial system in order to hold back the tide of debt defaults that would otherwise occur.”

Submitted by Dr. Jeffrey Lewis, Silver Coin Investor:

“Profound ignorance masquerading as wisdom – all the worse from the mouths of the prestigious, the PhD, the Nobel prize winner….” – Unknown

It’s time to revisit British economist Peter Warburton’s April 2001 classic tome “The debasement of world currency: It’s inflation but not as we know it“.

Our friend from GATA, Ed Steer brought it to attention once again.

Three important paragraphs describe the situation as it was, and how it is now by all means necessary…with one minor adjustment…

Not much has changed.

“What we see at present is a battle between the central banks and the collapse of the financial system fought on two fronts. On one front, the central banks preside over the creation of additional liquidity for the financial system in order to hold back the tide of debt defaults that would otherwise occur.”

If they stop printing, interest rates will begin rising. This will lead to the classic positive feedback loop whereby the tap root of confidence triggers…

The dollars begin to return home.

The cost of servicing debt outstrips the ability to keep up the stealth attempts.

The Rest…HERE

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