Tag Archives: deflation

Gary Tanashian of Notes From the Rabbit Hole (NFTRH) analyzed the Gold-Silver Ratio (GSR) throughout 2024–2025 as an indicator of risk sentiment and economic liquidity. A rising GSR suggested market caution, stronger dollar performance, and silver underperformance, while a falling ratio reflected potential reflation trends and risk-on behavior. Tanashian emphasized that investors should combine GSR analysis with additional indicators such as the HUI gold miner index, U.S. dollar trends, and Treasury yields. He also introduced the 30-year Treasury yield “Continuum” to interpret whether GSR shifts represent lasting market signals or temporary reactions.

There is a difference between inflation and hyperinflation and there is no gradual path from one to the other. To wind up with true hyperinflation, some very bad things have to happen. The government has to completely lose control the populace has to completely lose faith in the system or both at the same time. Are we there yet? Let's take a look.

When the supply of something is increased sharply relative to demand, the value of that commodity will decline. If the supply continues to increase rapidly and indefinitely, then that item will become worth less and less, with the potential to finally become nearly worthless. This is the Developing Disaster facing the US Dollar and the world. This is the factor that could become the single most important criterion in investment allocation decisions and possibly even for individual financial survival.

Central banking makes it possible for the government to expand the money supply by any amount, at any time deemed necessary and once (hyper)inflation is publicly seen as being the lesser evil of all options available for the government meeting its debt service, it cannot be dismissed out of hand that (hyper)inflation would be the consequence of an unsustainable debt-to-GDP ratio.

The debate over deflation/inflation continues as some of our most astute economic observers take sides. Frankly, I think that both sides are missing part of the picture. The debate concentrates on the after shocks of inflation/deflation: prices instead of the money supply and the demand for it. Words: 721

One of gold's allures is its use as a hedge against negative economic outcomes: inflation, deflation, general economic collapse and even war [with] investors and speculators enter[ing] the market based on their guesstimate of how bad things might get. [An analysis of] how gold performs during inflation and deflation [suggests, however, that there has to be some another] market force - some secret force - that has driven gold prices by +370% over the last 10 years. Words: 734

James Turk believes hyperinflation is ahead. Bob Prechter believes massive deflation is coming. An interesting discussion between the two takes place in this audio. Ultimately, both lead to Depression. Only the route taken differs, but that is important.

Mladjenovic explains his contention that we are in for a inflationary depression and, as such, investors should put their money in those things that will benefit from both inflation and strong demand and supply and stay away from where there is a deflationary impact, such as real estate. Words: 825

The Great Depression was the most severe economic depression ever experienced by the Western world and it was during this troubled time that the world’s most famous case of deflation also happened.

While I believe that the U.S. is heading towards a Weimar style hyperinflationary depression there are several developments that point to the possibility of another deflationary depression, similar to the 1930’s. Let me explain.