Wednesday, September 14, 2016

Deflation Will Turn Into A Currency Crisis
Once The Cons Conclude The Confidence Game

"The confidence level in central banks I have been warning will decline .. At the very core of this entire collapse in confidence in all levels of government lies in the socialist philosophy of Marxist-Keynesianism blended with monetary theory .. The only thing that matters is CONFIDENCE for that is what controls demand. You can increase the money supply, but it depends upon public confidence whether or not that will produce any inflation whatsoever. The 3rd century is the chaotic period of Rome when the money supply is dramatically debased. Yet strangely, this is also the same period that we find tremendous hoards of these debased coins being buried .. Between 235 and 268AD, there were 26 emperors. The political instability was pervasive. The collapse in confidence that sets off hoarding was the emperor Maximinus I who declares all wealth belongs to the state becoming one of the earliest Marxists if you will .. This set in motion hoarding on a grand scale. This is stage one that destroys an economy .. Once money begins to hoard hiding from government, the process is never easily reversed. The trust and confidence in being able to freely conduct business collapses .. This gives way to inflation ONLY when they lose all confidence in government. Then they spend the money for the tangible assets. Before that point, DEFLATION prevails because they do not know what form of government will survive."
- Martin Armstrong
link here to the commentary

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