Wednesday, January 14, 2015

Inflation update [VelOM]

Here's the backlink which indicated that the velocity of money still had to continue slowing down before a bottom of some kind could be found.  But since stocks have not sold off yet like they eventually must in order to have a true deflationary collapse, I believe that the coming VOM bounce will not be the start of hyperinflation but rather an uptick in inflation that will send oil back to $75 and gold to $1400.

But no matter how you count the VOM chart below the odds are that there could be an upward move of significant size soon (2015) and then likely another big wave down.  So these 5 waves down are likely A, then we get a move up to the level of the prior 4th in B (1.75 on the chart scale) and then a rapid C wave collapse into 2018 when the financial world as we know it is sent back to the 1800s (I'm sticking to my TDAmeritrade Illuminati warning model for now simply because the notion of a global credit collapse fits the debt Ponzi model which I am quite sure is in play).

For new readers I want to reiterate one important point: sudden inflation does not require the government to go on a new printing spree.  The dollar is already intrinsically worthless folks, it is completely a faith based currency.  Did Russia suddenly start printing a bunch of new money in order to achieve the exponential rise in inflation they have seen over the past 13 months?  No, they didn't.  What fueled it was falling oil prices and the Ukrainian war.  Because of these things, confidence was reduced in the money supply sending the people there into a mini crackup boom-like panic (buy anything you can just to move the failing currency from your pocket into someone else's).



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