Very enlightening article, thank you. It changed my perspective on current conditions... the fed could actually stoke hyperinflation because the oligarchs running our govt and fed stand to benefit tremendously and are morally bereft. I hadn’t fully appreciated their incentive
Hello Rudy, been a follower on twitter and now substack.
The biggest crime in our education is keeping the masses ignorant to what made Germany what it became, thank you for the text you brought, it really is eye popping.
I just want to comment on the podcast by Luke, I grew up in Israel during the inflation years, what Luke misses is that every worthy asset was priced in $, businesses, houses, land, rent, oil, no one priced their assets in local currency, having the $, allowed the local currency to float and allowed transactions of rare and expensive assets, otherwise, it would've been a total mess.
There was a good side of these years, we grew up appreciating the value of money, because it was hard currency, we were frugal, savers, and investors in local community businesses, I am raising children today in an era of easy currency and credit, and doesn't matter how hard I try, children can't learn that, and adults also can't, my friends who were bringing home cooked meals to college to not spend money on sandwitches, have 6 figure mortgages and car loans on depreciating asset.
We need to relearn the value of money and saving, I hope we can do it w/o a disaster.
In the ‘never let a crisis go to waste’ theory of events, there’s credible evidence that US and European industrialists financed Hitler’s rise to power - after the Tsars were assassinated the world’s wealthy feared the idea would spread and they’d be next - we know the wealthy play both sides to be sure they ultimately are on the winning side while profiting from both. It’s starting to be acknowledged - google did US industrialists finance Hitler.
Who knows what the future holds but no doubt the monied class will be making sure they survive intact at a minimum.
I hope you are correct. The alternative is terrifying. Our society, as it is today, would become deadly on a scale that is unimaginable; especially in large cities.
The Nazis got under 3% of the vote in the 1928 elections, and were in power 4 years later after the centrist parties couldn't deal with the aftermath of the 1929 crash properly.
Can you feel the disillusionment with the centrist parties today? Something radical is coming this way, from one direction or another.
It reminds me of Yeat's poem The Second Coming:
Turning and turning in the widening gyre
The falcon cannot hear the falconer;
Things fall apart; the centre cannot hold;
Mere anarchy is loosed upon the world,
The blood-dimmed tide is loosed, and everywhere
The ceremony of innocence is drowned;
The best lack all conviction, while the worst
Are full of passionate intensity.
Surely some revelation is at hand;
Surely the Second Coming is at hand.
The Second Coming! Hardly are those words out
When a vast image out of Spiritus Mundi
Troubles my sight: somewhere in sands of the desert
A shape with lion body and the head of a man,
A gaze blank and pitiless as the sun,
Is moving its slow thighs, while all about it
Reel shadows of the indignant desert birds.
The darkness drops again; but now I know
That twenty centuries of stony sleep
Were vexed to nightmare by a rocking cradle,
And what rough beast, its hour come round at last,
Inflation could be much, much worse in the USA than people presently imagine.
Not only was M1 expanded in 2020 by 5x, from approx $4T to $20T, Yellen has stated it will go to $50T. Price inflation will be felt strongly, many of us expect prices to double again this year.
The big disaster is of course when all the worthless dollars now overseas return to the USA. Don't forget to count the $20T China counterfeited and spent overseas. 2024 or 2025. Best solution is to repudiate the fake money debt and create new legal currency. based on land and labor or gold (gold has its problems, too).
Otherwise, there is a good chance for Hitler II and the same group that you can't name who run the banking system will get punished again.
Curious what you think of TIPS and I Bonds as inflation protection. I know your views on CPI understating inflation (which I agree with), but there are limits to the BS during normal times to the point where CPI at least is an understated measure of inflation.
But all bets might be off in a true hyper inflationary collapse of the currency, although the societal collapse that would accompany such a catastrophe may make most of my financial concerns pale in comparison...
The rise in interest rates by the Fed is bringing dollars here to earn higher interest. It's also a war on the euro and pound that the euro is likely to lose.
Great letter as usual!
Very enlightening article, thank you. It changed my perspective on current conditions... the fed could actually stoke hyperinflation because the oligarchs running our govt and fed stand to benefit tremendously and are morally bereft. I hadn’t fully appreciated their incentive
Bad currency begets societal collapse.
Hello Rudy, been a follower on twitter and now substack.
The biggest crime in our education is keeping the masses ignorant to what made Germany what it became, thank you for the text you brought, it really is eye popping.
I just want to comment on the podcast by Luke, I grew up in Israel during the inflation years, what Luke misses is that every worthy asset was priced in $, businesses, houses, land, rent, oil, no one priced their assets in local currency, having the $, allowed the local currency to float and allowed transactions of rare and expensive assets, otherwise, it would've been a total mess.
There was a good side of these years, we grew up appreciating the value of money, because it was hard currency, we were frugal, savers, and investors in local community businesses, I am raising children today in an era of easy currency and credit, and doesn't matter how hard I try, children can't learn that, and adults also can't, my friends who were bringing home cooked meals to college to not spend money on sandwitches, have 6 figure mortgages and car loans on depreciating asset.
We need to relearn the value of money and saving, I hope we can do it w/o a disaster.
In the ‘never let a crisis go to waste’ theory of events, there’s credible evidence that US and European industrialists financed Hitler’s rise to power - after the Tsars were assassinated the world’s wealthy feared the idea would spread and they’d be next - we know the wealthy play both sides to be sure they ultimately are on the winning side while profiting from both. It’s starting to be acknowledged - google did US industrialists finance Hitler.
Who knows what the future holds but no doubt the monied class will be making sure they survive intact at a minimum.
I hope you are correct. The alternative is terrifying. Our society, as it is today, would become deadly on a scale that is unimaginable; especially in large cities.
this article is so ..... (can't find words to describe it), it rhymes with the present in a deep, striking, eye opening and dark way.
Government wants war. It is great for more inflation, all for a righteous cause.
This was fantastic. Thank you.
Very enlightening and fascinating. I knew this but hadn't seen it articulated so well. Thanks
The Nazis got under 3% of the vote in the 1928 elections, and were in power 4 years later after the centrist parties couldn't deal with the aftermath of the 1929 crash properly.
Can you feel the disillusionment with the centrist parties today? Something radical is coming this way, from one direction or another.
It reminds me of Yeat's poem The Second Coming:
Turning and turning in the widening gyre
The falcon cannot hear the falconer;
Things fall apart; the centre cannot hold;
Mere anarchy is loosed upon the world,
The blood-dimmed tide is loosed, and everywhere
The ceremony of innocence is drowned;
The best lack all conviction, while the worst
Are full of passionate intensity.
Surely some revelation is at hand;
Surely the Second Coming is at hand.
The Second Coming! Hardly are those words out
When a vast image out of Spiritus Mundi
Troubles my sight: somewhere in sands of the desert
A shape with lion body and the head of a man,
A gaze blank and pitiless as the sun,
Is moving its slow thighs, while all about it
Reel shadows of the indignant desert birds.
The darkness drops again; but now I know
That twenty centuries of stony sleep
Were vexed to nightmare by a rocking cradle,
And what rough beast, its hour come round at last,
Slouches towards Bethlehem to be born?
Inflation could be much, much worse in the USA than people presently imagine.
Not only was M1 expanded in 2020 by 5x, from approx $4T to $20T, Yellen has stated it will go to $50T. Price inflation will be felt strongly, many of us expect prices to double again this year.
The big disaster is of course when all the worthless dollars now overseas return to the USA. Don't forget to count the $20T China counterfeited and spent overseas. 2024 or 2025. Best solution is to repudiate the fake money debt and create new legal currency. based on land and labor or gold (gold has its problems, too).
Otherwise, there is a good chance for Hitler II and the same group that you can't name who run the banking system will get punished again.
Curious what you think of TIPS and I Bonds as inflation protection. I know your views on CPI understating inflation (which I agree with), but there are limits to the BS during normal times to the point where CPI at least is an understated measure of inflation.
But all bets might be off in a true hyper inflationary collapse of the currency, although the societal collapse that would accompany such a catastrophe may make most of my financial concerns pale in comparison...
The rise in interest rates by the Fed is bringing dollars here to earn higher interest. It's also a war on the euro and pound that the euro is likely to lose.
I replied I didn't see it? So get lost punk