Biden – Inflation – Risk to National Security


Armstrong Economics Blog/Opinion Re-Posted Apr 3, 2022 by Martin Armstrong

QUESTION: Hi Martin,
What do you think banks will do with mortgages if we continue experiencing high inflation and/or hyperinflation? Do you think we might be able to pay off a mortgage with gold if things get bad enough?

Marc

ANSWER: No! The contract is in dollars and that cannot be altered. There won’t be hyper-inflation for that takes place when the CONFIDENCE in government completely collapses. The shallow analysis of even the German Hyperinflation has created such a myth that inflation is the result of an increase in the money supply – WRONG!!!!!!

To set the record straight, the hyperinflation followed the Weimar Republic’s FORCED LOAN in December 1922 when they seized 10% of everyone’s assets and gave you a bond you can buy on Ebay. Once that took place, people would no longer accept German currency and exchanged everything for foreign currencies, art, rare coins, stamps, and real estate.

In 1925, when Germany had to issue a new currency, it was backed NOT by gold, but by real estate. The same human response took place in Zimbabwe and even Japan because the emperors would devalue the outstanding money supply to 10% of what it was valued out and issued their own coins at the new value. The people refused to accept Japanese coins turning to Chinese and bags of rice. Japan lost the ability to issue coinage for 600 years.

This inflation is NOT based on printing money. This inflation is based upon shortages of goods. The source is very different and this is not going to end well. Biden’s sanctions have undermined the entire world supply chain. We are all connected and that includes Russia and China.

To create even more deliberate chaos, the Biden Administration is now out to impose trade restrictions on China as well. U.S. Trade Representative Katherine Tai is advocating a dramatic change in the United States’s relationship with China. The Biden White House has concluded that trade with China should be altered to be a defensive economic posture rather than continuing under the Phase One trade deal brokered between the Trump administration and Beijing. Like everything else, whatever Trump did, Biden is going out of his way to reverse it.

This will only further increase inflation right into 2024 and destroying the world economy removes any incentive to work together. Once Biden destroys the economic foundation ties with China all to put pressure on the World Economic Forum’s Great Reset, it looks like all-out World War III will unfold after 2024. Biden and his entire family have been bought and paid for. I find it outrageous that the Democrats demand Justice Thomas recuse himself because of comments of his wife, yet Biden is perfectly fine dealing with China and Russia when they have poured millions into his family’s pockets.

Biden seriously needs to be REMOVED from office as a matter of National Security.

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