Rafi Farber: Is Hyperinflation Actually Starting to Take Hold in Germany

1 year ago
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#RafiFarber - Is Hyperinflation Actually Starting to Take Hold in Germany

Milton Friedman once said, "Inflation is everywhere and always a monetary phenomenon." But is that really true? Sort of. The initial phases of inflation certainly are, but the switch to hyperinflation actually has nothing to do with monetary policy at all, and therefore it cannot be controlled by central banks.

The move to hyperinflation is rather a psychological phenomenon, when the public finally understands what is happening and moves to expel the poisoned central bank money from the economy completely. It appears that this switch is finally happening in Germany of all places, where the cultural memory of hyperinflation is the strongest in the Western world.

Meanwhile, the dollar index continues to soar. Support at $1,670 has marginally broken in gold and the 200 week moving average has been breached. Gold and silver have every technical reason to capitulate. And yet they refuse to do so. Why is that? Something very strange is going on in the spot September gold contract. The physical buyers have moved in hard.

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