Will stable foreign currencies beat gold in/after hyper inflation?

[hernancortes]

-snip--

Be careful

The message of this article is be careful how you adjust.

Because eventually, probably in one to three years, it will end. And as I have often written, it ends overnight. Inflation is a creature of government requiring legal tender laws, a monopoly on “printing” money, and capital controls. All the government need do to end it, is end the legal tender laws (which require that all creditors accept the U.S. dollar at face value for all debts), stop “printing” too much money, or end capital controls (which prohibit converting U.S. dollars to foreign currency or possessing or using foreign currency). Zimbabwe ended its recent hyperinflation overnight in 2005 by simply ending all those laws.

Government will continue hyperinflation for as long as it thinks it can get away with it. When they finally realize they no longer get any benefit from it—because the U.S. dollar is totally worthless and accepted by no one—they will end those laws and the “printing.” The hyperinflation will instantly stop as a result.

Celebrate?

Should you run out and celebrate?

Before you do that, you’d better do some other things:

Sell all your gold and other commodities that you overpaid for during the hyperinflation. The historical long-term average price of gold has been $642 in 2011 dollars since 1968. That means the future long-term average price of gold will be $642 2011 dollars, too. But you get to that average by it dropping well below that after having been up in the $1,600-per-ounce range in the early 2010s. In other words, gold will drop to something like $500 an ounce the day the hyperinflation dies.

Gold bugs reading that scoff.

read more...

http://www.johntreed.com/the-day-the...tion-dies.html

[GOLD DUCK]

QWAK,hernancortes ,For most of the time that people used real SILVER and GOLD as MONEY a SILVER coin the size of a dime was a days pay for a working man or soldier!

The PAPER and DIGITS we use today will become WORTHLESS but REAL physical GOLD and SILVER will always have VALUE as long as people use MONEY to buy goods and services.

FIAT is and has always been a HOAX and a SCAM --- that is why BANKERS and GOVERNMENTS hate people having and using GOLD and SILVER as MONEY!

Today globaly all curencies are FIAT and every last one of them will become worthless --- some sooner than others perhaps, but because they are all linked together TRUSTING any of them is a biger risk than holding GOLD or SILVER!

the DUCK