Shortages & Hyperinflation Lead to Total Misery
The comments below are an edited and abridged synopsis of an article by Egon von Greyerz
At the end of major economic cycles, shortages develop in all areas of the economy; this is what we are experiencing globally today. There is a general lack of labour, whether it is restaurant staff, truck drivers or medical personnel.
There are also shortages of raw materials, lithium (electric car batteries), semi-conductors, food, a great deal of consumer products, cardboard boxes, energy, etc. The list is endless.
Up for discussion: Shortages everywhere; bombshells; the US is hopelessly bankrupt—it needs to borrow 46% of budget; total misery; inflation is here; implosion or explosion; and the inevitable consequences of currency destruction.
“This is the inevitable consequence of the destruction of money through unlimited printing until it reaches its the intrinsic value of zero. Since the dollar has already lost 98% of its purchasing power since 1971, there is a mere 2% fall before it reaches zero. But we must remember that the fall will be 100% from the current level.”
If you don’t hold gold, you don’t understand what happens when bubbles burst; you are living in a fake world with fake money and fake valuation; your fake money will be revalued to its intrinsic value of zero; assets that were bought with this fake money will lose over 90% of their value; stocks will go down by over 90% in real terms; and bonds will go down by 90% to 100% as borrowers default.
The 1980 gold high of $850 would today be $21,900, adjusted for real inflation. So gold at $1,800 today is grossly undervalued and unloved and likely to soon reflect the true value of the dollar.