The Upcoming Central Banking “Nuclear” Explosion

by Andy Hoffman, Miles Franklin:

I cannot think of a time, in my entire life, when I was more worried. Not about my situation personally, as I believe I have prepared for what’s coming, as well as humanly possible. However, that doesn’t mean I won’t face hard times as well – potentially, far worse than said “preparations” accounted for. Let alone, my soon-to-be five year old daughter, as well as the children of everyone reading this blog, and billions of others the world round.

To that end, I have written often of how, when I first “invested” in Precious Metals in 2002 – at the time, 100% mining shares, versus 100% metal today – it was due to the relatively simplistic, financially-rooted belief that “the dollar” was overvalued; and consequently, would “decline,” whatever that meant.

However, as events unfolded, I not only realized the dollar’s value against other fiat currencies was meaningless; and for all intents and purposes, uncorrelated with gold and silver prices (particularly in light of the fact that 95% of the world’s population prices gold in other currencies); but that what really mattered was the dollar’s purchasing power against real items of value, in an increasingly inflationary world.

After 2008, it became painfully clear that monetary history would repeat itself, for perhaps the thousandth time. Only this time, every Central bank was a part of history’s largest, most destructive fiat Ponzi scheme. Which, quite clearly, had reached its hideous terminal stage, unleashing a hyperinflationary policy “bomb.” Since then, Central banks have lowered interest rates nearly 1,000 times, to the point that essentially all major nations are at or below the “zero bound,” whilst tens of trillions of currency units have been fabricated to “monetize” financial “assets.” Let alone, who knows how many “off balance sheet” currency units, care of the modern marvels of off-balance sheet accounting, and the “weapons of mass financial destruction” known as derivatives? Which, by the way, we can thank Bill Clinton for enabling more than any single person, in allowing the Glass Steagall Act to be repealed in 1999.

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