Sunday, October 18, 2009
Hutchinson on Hyperinflation
Martin Hutchinson's (MH) 12 October 2009 post at Prudent Bear, link: http://www.prudentbear.com/index.php/thebearslairview?art_id=10296 is a must read. MH notes, "We have never experienced a global hyperinflation, in which money is unable to purchase goods, so it becomes worthless. ... Once articles start appearing in the Financial Times about investors choosing to buy physical commodities rather than futures, many more such investors will be drawn into this activity. ... It does not matter one whit whether investors demand physical gold rather than futures, because gold has only insignificant industrial uses and the stocks of gold available in 'inventories' such as Fort Knox are far more than sufficient to supply those uses for a decades if necessary". Gold is money. Not the stuff our counterfeiter in chief Zimbabwe Ben creates.