One Bank Goes Apocalyptic: Inflation Is About To Explode “Leaving Global Economies Sitting On A Time Bomb”


Zero Hedge: Ronald Reagan (1978): “Inflation is as violent as a mugger, as frightening as an armed robber and as deadly as a hit man.”

Joe Biden (2021): “A job is about a lot more than a paycheck. It’s about dignity. It’s about respect. It’s about being able to look your kid in the eye and say everything will be okay. Too many people today can’t do that – and it’s got to change.”

Janet Yellen (2021): “Neither the president-elect, nor I, propose this relief package without an appreciation for the country’s debt burden. But right now, with interest rates at historic lows, the smartest thing we can do is act big.”

Jerome Powell (2021): “During this time of reopening, we are likely to see some upward pressure on prices … But those pressures are likely to be temporary as they are associated with the reopening process.”

Larry Summers, (2021): “I think this is the least responsible macroeconomic policies we’ve had in the last 40 years.”

The above quotes highlight that US macro policy and, indeed, the very role of government in the economy, is undergoing its biggest shift in direction in 40 years. In turn we are concerned that it will bring about uncomfortable levels of inflation. Read More

Opinion: Yesterday, bond king Joe Gundlach was asked rhetorically if inflation will be transitory or permanent.

“How could I know?” was the response.

In many years of studying financial markets, I have never seen such a divergence of inflation forecasts. Home prices, education costs, and used car prices have skyrocketed. Food prices and gasoline prices are rising, and still financial experts differ widely in the predictions.

The lockdown and re-opening of the global economy is unprecedented historically.

Long time readers will know that for the last decade my focus is not cyclical inflation, even though the poor, middle class and retirees are most adversely affected by it. It is hyperinflation, defined as rapidly rising inflation measuring more than 50% per month that the Bible says will happen in the last days.

The old adage: a wheelbarrow full of money to buy a loaf of bread. That is the real danger and in case you don’t think it can happen here, consider that few US government officials have voiced a concern that 6,000,000,000,000, (trillion) in new spending is on the way.

(For context, Six trillion seconds equals 189,276 years)

What few people understand is that hyperinflation is a currency-driven event. It doesn’t arise as a result of prices going up. Instead, hyperinflation comes from the value of the currency imploding and in most cases, a dictator will rise who will be far worse than the government officials that caused it.

Germany 1921-33 – The Weimar Republic, Germany’s government from 1918 to 1933, fell into hyperinflation. In October 1923, German prices rose at the rate of 41 percent per day. Starving Germans eventually brought in Adolf Hitler in 1933, as a savior for the economy.

Venezuela 2014 – Inflation rates became the highest in the world in 2014, following the socialist policies of Hugo Chavez, ushering an even worse dictator in Nicolás Maduro with inflation exceeding 1,000,000% by 2018.

In the tribulation hyperinflation appears early as prophesied in Revelation 6:5-6. Antichrist is identified as the ‘beast’ in Revelation 13:1.

See The 1% and Revelation: Do not Harm the Oil and Wine Here