GOLD is the money of the KINGS, SILVER is the money of the GENTLEMEN, BARTER is the money of the PEASANTS, but DEBT is the money of the SLAVES!!!

Sunday, December 16, 2012

Robert Prechter jr ~ GoldSeek Radio - Dec 14, 2012

Robert Prechter's insights are brilliant. People who think we're headed straight for hyperinflation do not understand what causes inflation: "credit creation." The Fed creates credit and further credit creation is done via fractional reserve lending. As asset bubbles pop, that credit (now debt) is destroyed via bankruptcies or payment: this is deflation and the value of the remaining dollars rises. Hyperinflation is an eventual possibility, but not until deflation has ravaged the system.

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