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Nexvu on Economics, Politics and the Markets

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Hyperinflation Hysteria and the Printing Press

Posted by nexvucapital on February 16, 2013

Our recent piece on ‘bubbles’ has created some interesting feedback from the gold bugs out there who claim that the price of gold is cheap relative to the pending Hyperinflation that will visit the United States, Japan and the UK (well heck the entire developed and developing world for that matter) due to the increased use of the printing press. We have one answer to this – NOT!!! Gold is now re-pricing while the factors of supply and demand come to grips with the cost of production against this backdrop of a deflation in the ‘Safety bubble’.

Due to a weekend filled with time on the rugby pitch, we have elected to express our counter to this bogus argument on the reasons behind Hyperinflation with an excellent and well researched piece by James Montier entitled “Hyperinflations, Hysteria, and False Memories”. This recent (February 2013) White Paper is a must read for those who want to understand the real causes of Hyperinflation.

For those who like pictures…one of these things is not like the other…






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