The Floodgates Begin To Open

Sunday, October 16, 2016
By Paul Martin

By: John Rubino
GoldSeek.com
Sunday, 16 October 2016

Strip out the buzzwords and focus-grouped phrasing and we’re left with a bunch of economists whose models have stopped working and who see no alternative (since their life’s work is the tending of such models) to cranking the knob up to 11 and seeing what happens.

Individual countries have in the past tried “temporarily higher rates of inflation,” and the result has always and everywhere been a kind of runaway train that either jumps the tracks or slams into some stationary object with ugly results. In other words, the higher consumption and investment that might initially be generated by rising inflation are more than offset by the greater instability that such a policy guarantees.

But never before has the whole world entered monetary panic mode at the same time, which implies that little about what’s coming can be said with certainty. It’s at least probable that a combination of massive deficit spending and effectively unlimited money creation will indeed generate “growth” of some kind. But it’s also probable that once started this process will spin quickly out of control, as everyone realizes that in a world where governments are actively generating inflation (that is, actively devaluing their currencies) it makes sense to borrow as much as possible and spend the proceeds on whatever real things are available, at whatever price. Whether the result is called a crack-up boom or runaway demand-pull inflation or some new term economists coin to shift the blame, it will be an epic mess.

And apparently it’s coming soon.

The Rest…HERE

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