The inflationary path and currency destruction

Watch the whole 29-minute interview at http://www.goldmoney.com/vogt-interview. Claus Vogt (http://www.sicheres-geld.de/) talks to James Turk about whether central banks will continue to inflate. They talk about the inflationary endgame and the grave consequences of reaching the point of no return and sliding into what Ludwig von Mises called “the crack-up boom”, with hyperinflation, currency destruction and a flight into real goods. Claus explains that the whole US Treasury Bond confidence game will come tumbling down, creating a funding crisis, rapidly rising interest rates and accelerating inflation. They discuss how close we are to a crack-up boom and whether the Treasury market is close to the tipping point. They both agree that the fact that the Fed is now the largest holder of Treasuries and that the US government is funding over 40% of expenditures with debt (instead of revenue), the situation is critical and little more is needed to push the US dollar over the edge. The interview was recorded on 14 May, 2011 in Hamburg, Germany.