US is Now Neck and Neck with Mexico on the Inflation Race

In this global fiat currency race to debase, the US is the king notional debtor. It stands to reason we will have to devalue a lot more to come. 

Now worse than South Africa, and neck and neck with Mexico.

“¡Qué vergüenza!”

Or in English… “How embarrassing!”

And wait for it.

We’re just getting started.

Apparently one of the most transitory or temporary things we now have, is our fiat currency’s purchasing power for real goods, services, and needs. 

As the quality of life for so many continues slipping away. 

There was a solid showing for the monetary precious metals this past week.

The spot gold price closed at $1,865 and the spot silver price at $25.30 per troy ounce.

The gold-silver ratio is at 73 and is likely to be falling further soon enough.

About three weeks ago, fiat billionaire and silver bull Scott Minerd, was on a Milken Institute panel speaking about the likely coming change to the Chairman of the fiat Federal Reserve. 

The likely next Fed chair is going to be a closet MMT proponent, claiming that inflation is good for us but likely only behind closed doors. Certainly, the fiat Fed and US Treasury have calculators and know the debts and unfunded liabilities are unpayable in real value terms. 

Did you hear that bond market billionaire insider at the end of his clip embedded in the video above?!

Look forward to yet more infinite QE and fiat currency creation ahead.

Lawrence McDonald had some poignant tweets this week.

This is not a political point.

Look, let me be frank. It doesn't matter which self-interest clown politicians come next. 

They are not gonna save you or anyone else but themselves and their insider’s interests

Do not be triggered emotionally by political statements like Joe Biden is a “good man” or that he is in bad inflationary Jimmy Carter territory. The latter is totally true, the former no one but our creator truly knows.

Inflation is as high as the 1970s - 1980s. Using the CPI formula tracked in those days, inflation is above 14%, matching the height of the worst consumer price pressure era.

The old method for consumer price inflation is now near 15%.

Putting the long-term inflation data measuring methodologies into a silver price context in today's fiat Fed notes, the old 1980 high using the government's increasing data we see a then price high near $150 per oz. If we use the government ShadowStats data that old price high of 1980 is now over $1,000 per troy ounce.

The truth is probably somewhere in between, buckle up.

Similar story for gold.

Left hand, using post-1980 increasingly rigged CPI data, a price of over $3,200 oz in 1980 using the fake fiat Fed note inflation data.

Right-hand side a price looking backward using the pre1980 inflation measuring formulas, the gold price high of 1980 is worth over $23,000 per troy ounce in today's increasing worthless fiat Fed notes.

Again the truth here is likely somewhere between, as gold values likely surge again this decade. 

Even the billionaire CEO for Twitter, who constantly carnival-barks for his bitcoin book, was dropping Shadow Stats bombs in people's Twitter boxes this week.

Just look at what the fiat monetary masters have done to the currency supply since they bastardized commodity price discovery increasingly using outsized derivatives, and increasingly rigged ongoing inflation data since 1980. 

Silver and gold today have explosive potential given what authorities have done and will likely continue doing to the system.

The #SilverSqueeze continues draining silver bullion out of the overleveraged fractionally backed COMEX price discovery market. Yanking near 60 million ounces in less than one year from the important registered pile. Just under $2.4 billion in silver value there, that is nothing in this fiat financialized world if and when confidence starts coming apart.

The US stock market S&P 500 measured by gold is overvalued. How much longer until the weak fundamentals roll that bubble over?

Finally, this FRED chart tells the tale of seemingly ever-growing US debts. If unfunded liabilities and entitlements not saved for were added, it would more than double the red line to somewhere near $200 trillion.

The Green GDP line generates the incomes and taxes to pay the interest yet is unlikely to ever pay down these debts.

We are backed in a corner.

Massive inflation is mainly how the fiat Federal Reserve will "solve" this growing graft, insider corruption, and financial coup. Via nominally devaluing the nation's fiat currency unit's purchasing power to get out from under its inability to pay it off in real value terms, not legally defaulting.

All you need is over 50% inflation per month for 4 months straight. 

I didn't prescribe that.

I am merely reminding you of an endgame transitional thesis, of what a longtime shrewd financial trader said in Late June 2020.

Hopefully, this never comes to pass for I have seen first hand the cultural fallouts of overnight fiat currency devaluations and what it does to a citizenry’s trust levels. It is ugly, to say the least.

As always and forever, take great care of yourselves, and those you love.

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James Anderson
James Anderson
Senior Market Analyst & Content

A bullion buyer years before the 2008 Global Financial Crisis, James Anderson is a grounded precious metals researcher, content creator, and physical investment grade bullion professional. He has authored several Gold & Silver Guides and has been featured on the History Channel, Zero Hedge, Gold-Eagle, Silver Seek, Value Walk and many more. You can pick up Jame's most recent, comprehensive 200+ Page book here at SD Bullion.

Given that repressed commodity values are now near 100-year low level valuations versus large US stocks, James remains convinced investors and savers should buy and maintain a prudent physical bullion position now, before more unfunded promises debase away in the coming decades...