In a recent interview on Arcadia Economics entitled, “We’re heading to an event that forces the FEDs hand” Bill Holter said,
“The US is going to default either by non-payment, or they’re going to blow the Money Supply up another twofold, fivefold, tenfold. They’re going to destroy the currency itself.”
He’s talking about the National Debt in the US and a forthcoming Currency Crisis with the Dollar.
I’ve been saying something similar for an awfully long time - at least two years.
I’ve said that the Government in cahoots with the FED are going to Monetize the Debt. If anyone listening doesn’t understand what I mean when I say monetize the debt, it means they want to render the Debt redundant by means of Hyperinflation.
Hyperinflation is obviously a more extreme version of Inflation. Hyperinflation is defined by Steve Hanke, Professor of Applied Economics at John Hopkins University as being an inflation rate of more than 50% per month sustained over a number of months.
If anyone’s interested, I’ve done a video saying more about the difference between Inflation and Hyperinflation.
According to Austrian School Economics, Inflation is primarily caused by an increase in the Money Supply.
The Quantity Theory of Money, is an Economic theory that was formulated by Copernicus in the 16th Century, and which argues that prices of goods and services in an economy are proportionate to the amount of currency in an economy – aka the Money Supply.
So, if a great deal of currency is added into the system, then prices will rise in direct accord – assuming ceteris paribus – that everything else remains constant. Et voila, we have inflation.
The inflation that the citizens of America are experiencing with now is a direct result of the massive amount of currency creation that occurred during the Pandemic.
Anyway, the process we’re concerned with here in this video - the debasement of Fiat Currency, the movement from Inflation to Hyperinflation - happens relatively slowly, over a period of decades, but nearing the end phase, things start to speed up. That’s the time when those in charge of currency creation start to increase the Money Supply in an exponential fashion and … low and behold … this is what we’ve seen.
There’s a chart you might want to look at. Those of you who are more visually orientated might appreciate this. Type “FRED M1 Money Supply chart” into a search engine and take a look. The line chart you will see is a classic Hockey stick shaped chart. Notice that the source is the “Board of Governors of the Federal Reserve System”, so it’s not me just fabricating stuff.
And I dare say that this is only what they are acknowledging at an official level. There is most likely other stuff they have not made public.
Also, if you change the search criteria slightly to get the “FRED M2 Money Supply chart”, then you will the see a somewhat different chart – there is a rise, but it’s not anywhere near as dramatic as the M1 chart. Be advised that, o
