Jim’s Mailbox

Posted at 10:04 AM (CST) by & filed under Jim's Mailbox.

As we have continually said, the debt (in the US AND globally) cannot ever be paid back in current values of currency.  This results in “devalue or die…!



It’s the only exit in the room…Monetization.

Inflate away all debts, both public and private.

From the government’s profligate spending, to Municipal extravagance, to Student debt, to credit card issues, and more.

But the amount of inflation necessary must approach hyper inflationary status to work.

Serious stuff!

Mainly because the end result is the downfall of all economic systems and societal collapse.

CIGA Wolfgang Rech

The Clash Of Generations Is Here: Why People’s QE Is Inevitable
July 1, 2019

Via Global Macro Monitor,

Don’t know if you caught the Democratic debate the other night, which featured Bernie and Joe, who could be the grandfathers of some of the younger candidates that were on stage, but it also confirmed the arrival of what we have been writing about for years, the Clash of Generations.



Courtesy of CIGA Werner.



This will end in a grand failure to deliver Wolfgang…



Gold is always an indicator of potential turmoil somewhere.

“Gold was the enemy to me”  Paul Volker

“Then and now, the gold price is viewed as the inverse price of the confidence in the system.”












Being that is “capped” to prevent anyone from becoming enlightened, today’s jump in price especially significant.

The rise of $28 on no real news, despite any potential intervention, is truly significant.

Something may well be brewing and we’ll soon find out.

CIGA Wolfgang Rech

Paul Volcker: Gold Was the Enemy
March 26, 2015

NEW YORK—Paul Volcker is a living financial legend. As a chairman of the Federal Reserve in the early ′80s, he was singlehandedly responsible for quashing stagflation by raising interest rates to an unheard of 20 percent by June 1981.

What ensued was an unprecedented economic expansion and bull market in stocks, which was only seriously stopped by the Internet bust in 1999, caused by the lax monetary policy of Volcker’s successor Alan Greenspan.

As part of a meeting of the Committee for Monetary Research and Education, Volcker (88) gave us rare insights into his story, the working of the Fed, and current financial issues at the University Club in New York, on March 25.

Volcker served under both Democratic and Republican presidents but got along well with both.

“When I became chairman, we had pretty bad inflation. President Carter was under some pressure. He recognized inflation was a big problem and something had to be done about it,” he said.