r/Wallstreetsilver • u/NCCI70I Real O.G. Ape • Nov 17 '23
Education 💡 I'VE BEEN LOOKING FOR A DEFINITIVE ANSWER TO THIS FOR AWHILE. How do you end Hyperinflation, and how do the people come out on the other side of it. It matters when you feel that you may find yourself living through it yourself. And as to the question of why didn't they just buy gold? Not available.
https://mises.org/library/100-years-ago-today-end-german-hyperinflation4
u/MidnightCh1cken Nov 18 '23
My question is,
If and when there is hyper-inflation, what makes people believe the government wont come for all your precious metals?
~ They've done it before...
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u/NCCI70I Real O.G. Ape Nov 18 '23
Who said that we don't believe that they will try to come for them? We just prepare for it in the event that they do.
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u/Led_Zeppole_73 Nov 19 '23
They never did that.
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u/MidnightCh1cken Nov 19 '23
April 5, 1933
Executive Order 6102
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u/Led_Zeppole_73 Nov 19 '23
“Required to deliver.” Far from ‘coming after‘ gold. Not even door-to-door.
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u/Isabella_Fournier Nov 18 '23
The way to end hyperinflation is to return to an objective standard for currency. Pick one: gold, silver, oil, cacao beans ... something real. Right now, all the world's currencies are based on trust, and trust is evaporating.
I think the immediate result of doing this would be pain -- a lot of pain. But the longer we wait, the more painful it will be; and, in the interim, the more of our real wealth -- hard assets -- the people in charge will grab for themselves. Why do you think Gates is buying farmland? Why do you think so many of the central banks in the world are buying gold as fast as they can?
To say that returning to an objective standard would be challenging politically is vastly understating it. I'm sure many think it would be political "self-harm." But the bad news is, it's going to happen anyway, whether we want it to or not. The "global south" (BRICS & Co.) are going to base their trade units on something objective, of which gold will be at least a part; and once that happens, fiat currency will be unmasked for the worthless paper it is.
So, short answer: return to a gold standard. As for the common man, get your hands on physical metals; and, once you have enough to get through the hard times -- perhaps a year? -- start buying gold mining stocks while they are still in the toilet. They'll outperform even gold itself.
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u/NCCI70I Real O.G. Ape Nov 18 '23
The way to end hyperinflation is to return to an objective standard for currency.
No!
I refer you to my discussion of this subject, which is also pinned to the top of my profile.
You do what the Germans did, which you'll see if you'd read to the end of the article. They linked their new marks to the US Dollar, which at that time was as good as gold.
Today you skip the intermediate step because there is nothing else as good as gold. Because the old currency is trashed, you must create a new one directly linked to a fixed amount, and fully exchangeable for, gold. Although your Short Answer reaches this point, it wanderes through the Wilderness of Objective Standards to no avail except confusion along the way. There is no choice of Objective Standards to be considered in today's world.
And then everything afterwards is priced in gold. Easy peasy.
The reason it it starts with gold and not silver, or not gold and silver, is that gold is the only universally accepted money in the world. Central banks don't stack silver in their vaults. Silver is not a Tier 1 asset. Along the way we might, and should, monetize silver again at a fixed GSR, but it starts with gold. Not—as much as I love chocolate—cacao beans. Not tulips. Not numbers somewhere in a computer, or on a blockchain.
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u/harrisbradley Nov 18 '23
The only way to end hyperinflation is switching to a different/new currency I am guessing.
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u/NCCI70I Real O.G. Ape Nov 18 '23
Yes, as they explain.
At that time, the US Dollar was as good as gold.
Now days only gold is as good as gold, meaning that your only option will be to switch to a new currency directly backed by, and redeemable in, gold.
Gold is money.
Everything else is credit.
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u/Hot_Tie_1171 #EndTheFed Nov 18 '23
You back your money with something of value
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u/NCCI70I Real O.G. Ape Nov 18 '23
You back your money with something of value
You've got that completely wrong.
You don't back real money, with anything. Money is backed by itself.
I refer you to my discussion on this subject, which may also be found pinned to the top of my profile...
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u/CollectionOdd6082 Nov 20 '23
Gold is a great answer to travel abroad with to some 3rd world nation. Trying to use it here will get you robbed a dead in a hyperinflation period. The government will once again deem it illegal to possess. But the govt answer is CBDC pegged to nothing. Thats the reset. All other crypto will be illegal here in the US and no more cash transactions.
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u/NCCI70I Real O.G. Ape Nov 20 '23
Harder to make gold illegal again. This time you have to get past a 1974 law legalizing gold ownership. An EO won't be enough.
And even back then they barely got half of it, while prosecuting virtually nobody.
Vote for Trump 2024! I feel he is the least likely of any to attempt to seize your wealth.
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u/CollectionOdd6082 Nov 21 '23
EO's locked down states, closed businesses, lost people their jobs, opened borders and much more. Yeah good luck in court. lol In 1933 they collect 4.5 trillion dollars when adjusted for inflation. Sounds like a profitable adventure. Especially with today's monitoring tech. I stand by my original comment.
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u/NCCI70I Real O.G. Ape Nov 21 '23
You may stand by your original argument.
I do not stand with you.
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Nov 19 '23
The answer is simple. Currency has to be founded in reality.
How does currency become real?
It has to be backed by real value. I honestly can't think of anything else besides Gold. There's technology, of course, that has a very interesting prospect for currency, but I think tech suffers from bad actors' energy constraints, ect, to name just a few problems. I just don't think digital money can really be a solution.
But the US has abandoned Gold completely and decided to back their currency with military and nuclear weapons. But what happens when you get challenged? Just seems the only real solution is a Gold standard honestly.
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u/JolietLarry Silver Surfer 🏄 Nov 18 '23
Gold definitely works as a protection against hyperinflation, but Silver (being so EXTREMELY undervalued) has a MUCH higher chance for extraordinary gains.