muses of the moment

June 5, 2009

Monty with Guild Investment Talks about Hyperinflation

Read Monty’s full article on Jim Sinclair’s website here.

Monty Guild of Guild Investments and Jim Sinclair of have been talking about the ultimate end of this gold bull market would be marked by a hyperinflationary depression brought on by the printing of money by global governments.

Here is a quote from the article:

As most economists will tell you, the U.S. economy is in a depression.  Statistically speaking, most depressions are deflationary and therefore accompanied by a fall in interest rates.  However, the bond market’s recent behavior provides evidence that the current depression is not deflationary.  On the contrary, inflationary pressures are building and interest rates are rising.  Bond investors, looking ahead and seeing a light, are realizing that it is the headlight of an oncoming train…and this oncoming train is the trillions of dollars of U.S. bonds which must be floated by the Federal Reserve in the next few years.  The consequences of this flotation will include a weakening of the dollar and an increase in interest rates.  Investors are finally awakening to this trend which we believe will continue for some time.

The debasement of the dollar will continue in a long down trend and gold and oil will continue the long trend upward. There will be corrections during this time, but use those a s buying opportunites.

Things are NOT going to get back to normal. Shift your investing focus for a hyperinflationary depression.

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