muses of the moment

April 9, 2011

Latest Letter from Martin Armstrong dated April 6, 2011

Filed under: Martin Armstrong — Tags: — totallygroovygirlfriday @ 7:13 am

Click here for Martin Armstrong’s latest letter dated April 6, 2011, entitled Hello, World (9 pages). This is Mr. Armstrong’s first letter from home. He is publishing again!

Hyperinflation vs. deflation

There is a lot of discussion on the blogosphere about whether we are entering a hyperinflation or a deflation. Will we experience death by fire or ice?

On the one hand, groovygirl is very excited that people are actually acknowledging that there is a huge problem and death, either by fire or ice, is a high probability. A few years ago, no one was even discussing that problem. So, that is a positive move.

But now, the deflationist vs. hyperinflationist argument is a distraction.

Disclaimer: groovygirl is lending toward hyperinflationary end game, not deflationary, at this point in time. But having said that…..

The real big picture is the debt implosion on a global scale and the loss of confidence in all fiat paper currencies (which are in essence, debt) that will result. The global policy reaction to this collapse in debt will determine whether we go the deflation or hyperinflation direction.

All global debt is contracting.

Precious metals keep their purchasing power whether in a hyperinflation or deflation. The goal is not to make a huge amount of money. The goal in the currency collapse is to keep the purchasing power of the money you do have.

It will not help to price assets in dollars (or euros or yen or whatever) during a hyperinflation or deflation. To determine value, price assets in gold or silver to determine the trend of a market and true value to make a decision of when to buy and sell any asset.

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