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Tuomas Malinen: The conditions for hyperinflation are in place
By Tuomas Malinen
GNS Economics, Helsinki, Finland
Wednesday, February 24, 2021
From time-to-time historically, national authorities have resorted to financing by their central bank to cover budget shortfalls. Another word for this is monetization of debt or deficit-financing by the central bank.
Asset purchase (or "quantitative easing") programs can be viewed as modern versions of deficit financing. With them, central banks buy (mostly) sovereign bonds from the capital markets, resulting in artificially low yields on government bonds.
... Dispatch continues below ...
Prime Mining Named to
TSX Venture Exchange Venture 50
Company Announcement
Wednesday, February 24, 2021
VANCOUVER, British Columbia, Canada -- Prime Mining Corp. (TSX-V: PRYM, OTCQB: PRMNF, Frankfurt: A2PRDW) announces that it has been named to the 2021 TSX Venture 50, an annual ranking of top-performing listed companies from five industry sectors including mining, oil and gas, clean technology and life sciences, diversified industries, and technology.
The 2021 Venture 50 top performers were selected based on year-over-year performance across three equally weighted criteria: market capitalization growth, share price appreciation, and trading volume for the year ended December 31, 2020.
“We are extremely honored to be recognized and selected by the TSX Venture Exchange within the top 10 of mining companies,” said Daniel Kunz, CEO of Prime Mining.
"The past year has seen Prime Mining evolve on many fronts, including the advancement of our high-grade gold and silver deposit in Sinaloa, Mexico, and the addition of a strong, experienced management and technical team and strategic shareholders Trinity Partners and Pierre Lassonde." ...
... For the remainder of the announcement:
https://primeminingcorp.ca/news/company/prime-mining-named-to-tsx-ventur...
As these programs essentially provide credit from the central bank, they do increase the money in circulation quite a bit.
In the United States, for example, the quantity of money, measured by M2, has increased by a whopping 26% in a single year. This is the largest annual increase since 1943.
The combination of the fast growth of money in circulation and the decline in production capacity, whatever the cause, is the precondition for ravaging inflation.
Worryingly, we are seeing those preconditions met. ...
With massive quantities of new money in circulation, all that is needed for an "inflation scare" to start is a pickup in the velocity of money driven, for example, by improving economic activity in the U.S.
If and when inflation suddenly quickens it may lead to an overreaction, a shock, among consumers and corporations, which may revise their inflation expectations upwards, drastically and simultaneously. And then all bets are off. ...
... For the remainder of the analysis:
https://gnseconomics.com/2021/02/24/is-hyperinflation-on-the-horizon/
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http://www.gata.org/files/GATA-4-wine-bottles.jpg
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http://www.gata.org/files/FayJWineryVarietals.jpg
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Support GATA by purchasing
Stuart Englert's "Rigged"
"Rigged" is a concise explanation of government's currency market rigging policy and extensively credits GATA's work exposing it. Ten percent of sales proceeds are contributed to GATA. Buy a copy for $14.99 through Amazon --
https://www.amazon.com/Rigged-Exposing-Largest-Financial-History/dp/1651...
-- or for an additional $3 and a penny buy an autographed copy from Englert himself by contacting him at srenglert@comcast.net.
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