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Imagine a world where a wheelbarrow full of dollars won’t buy you a loaf of bread, but one gold coin can buy you groceries for a week.

March 30, 2011 – Imagine a world where a wheelbarrow full of dollars won’t buy you a loaf of bread, but one gold coin can buy you groceries for a week. Like it or not, that day is coming.

Hyperinflation is much more that a bad case of inflation. It is the point where a currency loses its value entirely. It is the inevitable end to all fiat money as governments try to take the easy way out of debt problems created by the excesses of the governmental and financial elite. One need only look at the once mighty German empire following WW I for an example.

Back then, however, the world got along OK because it was just one economy in shambles. Just as we have barely felt the ripples from hyperinflation in minor economies today. But the threat of hyperinflation is going global.

Soon to join the US and several European countries (ironically Germany is not one of them) in that insane policy will be Japan as it tries to reconstruct from the devastation there. But Japan’s debt is already double its GDP. That will make two of the top three global economies and a number of other sizeable economies members of the money printing club, which combined represent an overpowering percentage of all fiat money.

Nobody can say for sure when it will happen, but history tells us that monetary collapse strikes suddenly and rapidly escalates. No debt instruments and no assets linked to currency will be of any value when hyperinflation hits. One sign that the wheel is in motion will be a strong and extended rise in the price of gold. And Goldman Sachs now predicts that gold will approach $1,700 over the next year.

Once a currency is in its death throes, however, no amount of it can buy gold. That opportunity has been lost. And some experts believe that could happen as early as this year as the dollar sinks below its last two supports.

China, which makes no bones about its bid to have the yen become the new reserve currency, understands the enormity of the threat. The People’s Bank of China last week directly urged the citizens to buy gold to hedge against the collapse of currencies.

We should treat the threat with no less urgency and buy gold coins while we can.

Kevin Johnson

Senior Staff Writer – GoldCoin.net

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