GoldMoney Alert – Hyperinflation on its way?
James Turk
“Some say that T-note yields are climbing in spite of the fact that the Federal Reserve is buying Treasury paper, but they have grabbed the wrong end of the stick. T-note and T-bond yields are climbing precisely because the Federal Reserve is buying Treasury paper.”
“Hyperinflation is caused by the central bank buying the debt of a government for which spending is out of control, and then turning that debt into currency, which describes what is happening in the US today. So falling dollar exchange rates as we have seen in recent weeks is a normal response to the Fed’s actions. And the more Treasury paper the Fed buys, the lower the dollar will fall in the foreign exchange markets and more to the point, the higher gold will rise.”
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