Friday, September 20, 2013

Gold and Silver Come with a Central Bank Guarantee

My book was written from 2005 through 2007. In it I said there would first be the threat of deflation (this came true in the crisis of 2008) to which Ben Bernanke would overreact with a helicopter drop (this came true with the bailouts and QEs) which would cause an inflation (this came true when the stock markets and real estate reflated.) Next there will be a real deflation… a contraction of the currency supply. This will happen when the credit/debt/bond/fiat currency bubble and the derivatives bubble begin to implode. The reaction of the world’s central banks will be to print until deflation gives way. I believe this will cause a hyperinflation. A hyperinflation doesn't require a nation to print its currency into oblivion… it only requires a loss of faith.

- Source, Mike Maloney's Top Ten Reasons to Own Gold and Silver: