Suicidal money-printing and inflation

Investors must find asset classes which must appriciate in value at a greater rate than the spiraling inflation from the printing money programs. One thing investors seek to do in bad times is investing in gold and silver. Humaity`s shield against predatory inflation and crime.

If a company print more shares, then the price of the shares will plummet. Let`s say you have shares in a company that prints more and more shares, the shares you have will at least be worthless. You will start to sell your shares as soon as possible, before it`s too late. If the banks do the same, like printing more money, the fiat currency must plummet in value (puchasing power). This is inflation!

We saw this hyperinflation in Weimar Germany. It is possible to delay its effects, but never possible to prevent this money printing from destroying the value of its own paper. At the end; it worked for Weimar republic! The banks now continue to ramp-up at an exponential rate. Banks in Europe use words like «unlimited» and banks in US use words like «open-ended».

We know the banksters must destroy their own fiat currency, and when they do, the value of these precious metals will probably not increase in value? This is something we need to have in mind. Currency dilution is not a theory. It is a simple relationship of arithmetic.

Most of the novice of investors understand the consept of dilution when it comes to shares in a company, but none of them understand exactly the same thing that is going on in the fiat currency market. Currency-dilution is the same as share-dilution in virtuelly every respect. Keep that in mind.

Have a look at the Fedeeral Government Debt and Primary Budget Surplus, 1912 – 2012 (percent of GDP);

Fed debt

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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