A reader sent in this astute note, speaking of the Fed:
"I was reading an article when a couple of points jumped out at me.
1. central banks in the last few months have created around 8 trillion new currency units, dollars, euros, etc.
2. these central banks utilize fractional banking. thus each dollar the banks have and lend out can create up to 8 to 10 or so additional currency units. that is basic money and banking 315.
3. thus over the next 12-18 months, we can expect a volume of money to be created in the neighborhood of up to 80 trillion new currency units. assume a 5% reserve requirement. and I have read that in some cases the banks are negative on reserves.
the case for hyperinflation seems pretty strong and as well for the debasement of currencies.
thus, collapse of the dollar and increase in gold price seems on a steady course. its a done deal.
your thoughts?"
Interesting. Is the low gas price caused by deflation? This seems plausible, as well as hyper-inflation following closely.
