This Is An Inflation Tsunami

The comments below are an edited and abridged synopsis of an article by SchiffGold

Peter Schiff says that the Federal Reserve and the US government are trying to fix a problem they caused, and their cure will unleash an inflation tsunami.

This Is An Inflation Tsunami - BullionBuzz - Nick's Top Six
Tsunami made of 100 dollar bills with a photo editing program.

Another shoe dropped with the failure of First Republic Bank. The FDIC rushed in to bail it (and others) out; but the government is trying to fix the problems it created in the first place.

There is no other industry like this; the government doesn’t guarantee your money anywhere else. Why should they guarantee it if you put it in a bank? It’s supposed to be a capitalist system, but it’s been corrupted by socialism.

Interest rates are socialized too, because the Fed picks an interest rate rather than allowing the market to discover the appropriate rate. When the Fed sets rates too low and prints money to make that possible, it unleashes inflation and creates economic imbalances that result in financial crises and depressions when the bubbles burst. That’s where we are now.

Peter believes the Fed needs inflation to prop up the banks and the US government, which is also insolvent. Nobody’s money is safe in any bank, he says, because even if your bank doesn’t fail, it’s going to be bailed out through inflation. So, while you might not lose your money, it will lose its purchasing power.

The Fed funds rate now stands between 5% and 5.25%. That’s still not enough to do anything about inflation, but it is enough to create more problems for the banks and anyone that has debt to service.

The bulk of this financial crisis is in our future. We’re at the tip of an iceberg right now, and the question is where to put your money. Peter says, put it in gold.

“It’s [gold] going much, much higher than this—many multiples of its current price. So absolutely, get out of the dollar. Get out of banks, and get into something real, whether it’s gold, silver, foreign stocks. You must look for a port in the storm because this is an inflation tsunami.”

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