Hyperinflation Defined, Explained, And Proven: Part III by Jeff Nielson, Sprott Money
In the first part of this series, the term “hyperinflation” was defined. “Inflation” is an increase in the supply of money. The prefix “hyper” denotes that something is excessive. Thus by necessary, logical extrapolation, hyperinflation can only be an excessive or exponential increase in the supply of money (currency).
Most people will either not understand or not agree with this definition, because they have been consistently fed a pseudo-definition of this term, that “hyperinflation” represents an exponential increase in prices, i.e. extreme price inflation. In fact, this extreme price-spiral is not the actual hyperinflation, but rather the consequence of hyperinflation. The causal chain here is elementary.
First the supply of money is increased at an exponential rate. This causes an ultra-extreme dilution of that currency, and it is this ultra-extreme dilution which causes the currency to lose value at an ever-increasing rate, and thus prices spiral higher. This conclusion is reinforced by the fact that there is no consensus on the pseudo-definition. Look for a definition of “hyperinflation” in terms of a price-spiral, and all one will find is either generalities, or, where specific numbers/formulas are used, these numbers and formulae are all different.
Readers were provided with a real-life example of a currency which has already been hyperinflated (past tense): the U.S. dollar, via the infamous Bernanke Helicopter Drop . Part II then took on the task of explaining how and why our current economic parameters guarantee a hyperinflation spiral for all of the debauched currencies of the Corrupt West ( not a deflationary crash).
Skeptics will remain unconvinced. “Where is the proof?” they ask. That is the task of this final installment. We begin this process by again resorting to the basics of sound analysis: definition of terms. Any historical examination of the economic phenomenon of hyperinflation will show that there is always a temporal gap between the time when the money supply of a currency has been hyperinflated, and the time when the consequence of that hyperinflation occurs – the price inflation death-spiral.
This temporal gap between when a currency becomes fundamentally worthless (worthless in theory) and its exchange rate plunges to zero (worthless in fact) is a confidence gap . It is the amount of time it takes for the Chumps using this now-worthless fiat currency to realize that the currency is worthless.
Note that the terms “con” and “con-man” are derived from the original expression “confidence man”. A confidence man was someone who engaged in fraud, and the means to his success was gaining and maintaining the confidence of his victims. Hyperinflation is the ultimate economic con (and central bankers are the ultimate Con-Men). A regime conjures (un-backed) currency into existence at a near-infinite rate, and then tries to pretend that the currency still has value.
It is within such a confidence gap that we now dwell, the final honeymoon of this gigantic, systemic fraud. Our currencies are already fundamentally worthless, but the Chumps do not yet realize this. In this case, “chumps” includes a large herd of charlatans who have the audacity to label themselves “economists”.
These charlatans see no signs of hyperinflation. They believe the absurd lies from our puppet governments (parroted by the media drones) which they call “inflation statistics” . They believe this as the price of food and shelter, the two most-important components in our cost of living are already spiraling higher at the greatest rate in the modern history of our nations .
Further proof that we have already begun an irreversible hyperinflation spiral comes in showing why other asset classes are not (yet) exhibiting such price-spirals. We start with an examination of the fraudulent, worthless, Western currencies themselves.
Why has the exchange rate of these currencies not begun to spiral towards zero in an even more obvious/overt manner? Two words: currency manipulation . As regular readers are well aware, the Big Bank crime syndicate has already been criminally convicted of serially manipulating all of the world’s currencies, going back to at least 2008.
By fraudulently manipulating worthless Western currencies upward, and fraudulently manipulating the currencies of the Rest of the World downward, the effects of Western hyperinflation can be temporarily suppressed. But this is only the beginning of the (illegal) schemes by the banksters to conceal their hyperinflation.
The prices of commodities, the raw materials which are primary inputs in the production of goods have been ruthlessly suppressed, through systemic market-manipulation, which has been well-documented in previous commentaries . The other primary input of production is labour. Wages have been even more-ruthlessly suppressed, by the political puppets of our governments, at the orders of their Masters – the banking oligarchs .
In real dollars, Western wages have been in a downward spiral for 40+ years. This wage destruction has been perpetrated through a combination of two economic crimes-against-humanity. First, our puppet governments have allowed structural unemployment (i.e. permanent unemployment) to reach all-time extremes. Secondly, via the economic crime known as “globalization”, these puppet governments have knowingly and deliberately given away 10’s of millions of our jobs – primarily well-paid, skilled-labour jobs in manufacturing.
Via these twin economic crimes, an enormous glut of labour has been created across the West, with now well over 100 million people permanently unemployed . As an elementary premise of economics, an excess of supply causes the price for that good to fall – and the price continues to fall until that excess is eliminated. With the Traitor Governments of the West doing less-than-nothing to eliminate this radical, excess supply of labour, there is no end in sight to the downward spiral in wages.
With two of the primary inputs of manufacturing being suppressed, this leaves only one more primary input: energy. U.S. political puppet, Barack Obama, has already publicly boasted that the downward manipulation of oil prices is “a part of the U.S. strategy” of economic terrorism against Russia. With all of the primary inputs of manufacturing heavily suppressed/manipulated, this has temporarily depressed the prices of virtually all manufactured goods, to a dramatic degree.
Through the mega-crime of currency manipulation, the mega-crime of market manipulation, the mega-crime of wage manipulation, and the despicable crime-of-omission of our governments in allowing all of this to occur; the effects of hyperinflation have been temporarily hidden and delayed.
Despite the theoretical proof that hyperinflation has already taken place, despite the existence of massive, obvious economic parameters showing that hyperinflation is inevitable, despite a gargantuan sequence of crimes, corruption, and deceit to hide this hyperinflation; the Skeptics will still remain unconvinced. One cannot “see” if they insist on keeping their eyes closed.
Having now explained how this mega-crime is being (temporarily) hidden, we can refer back to the public confessions of our governments, first discussed in Part II.
Competitive devaluation is the official and permanent monetary policy of the Corrupt West…All of our governments are racing to see which can drive down the value of its currency the fastest, i.e. which can “create inflation” the fastest – since lowering the exchange rate and creating inflation are two sides of the same coin.
As was explained in another recent commentary , “competitive” devaluation is more than merely economic suicide. It is economic treason. Our Traitor Governments, by their own, public admission, are racing to inflate our currencies as fast as they can. What do we call it when the rate of inflation is maximized? We call it “hyperinflation”. Our governments are in an open race to see which can complete this hyperinflation spiral the fastest, and complete the destruction of our economies along with it.
The motive for this Crime of the Century has been frequently discussed previously. Our central banks, tentacles of the banking crime syndicate known as “the One Bank” steal via inflation. Inflate a currency a little bit, and you can steal a little wealth (in relative terms). Inflate a currency a lot, and you can steal a lot of wealth. Hyperinflate a currency, and you steal all the wealth stored in that paper.
This is the ultimate crime against humanity of the One Bank, now very near its fruition. Our Traitor Governments are its principal accomplices. “Competitive devaluation” is the euphemistic lie parroted by these political puppets, as yet another means to aid the banking crime syndicate in hiding the hyperinflation spiral – and thus extending the confidence gap. Our currencies are supposed to be plunging toward zero, the puppets tell us. It is how to “build an economy”.
No, it is not. One cannot “build” anything via serial suicide. This nonsense was debunked emphatically, in the commentary already previously referenced:
Competitive devaluation relentlessly drives down domestic wages (in real dollars), causing a perpetual, downward spiral in the domestic economy. With the real-dollar value of the currency continuously falling, the Workers get less and less “bang” for every buck. Less and less domestic goods and services can be consumed, and thus produced.
Understand the folly. With any/every nation it is domestic activity which comprises the vast majority of all GDP. Even with so-called “exporting nations” this is true. Competitive devaluation is an effort to artificially boost one facet of an economy (exports), through seriously and permanently sabotaging the heart of that economy: domestic activity. It would never and could never be possible for any nation to achieve lasting economic benefits through the serial devaluation of its currency. The numbers could never add up . [emphasis mine]
Competitive devaluation is a lie. It is a lie to cover up a crime, the bankers’ crime of hyperinflation. This term has now been defined. It has now been explained. And it has now been proven, in several ways, including via the open confessions of our own governments. Ignore this economic holocaust at your own peril.