It happened quite quickly, as inflation seems to happen here, but In Iran it happened so fast, that the populace was unable to purchase foods to stay alive, and it could be a preview of things which could happen anywhere. Even here, since it has already happened so slowly, that most Americans think it is only ‘prices rising a few cents at a time.’ When something happens slowly, be it inflation, or even disease, few notice it till it becomes serious.
Example: Gasoline has gone from 20 cents a gallon to $2.50 today, and most just paid it and never thought twice about it, as it gradually happened. Same with gold, which has gone from $250 to $4600, and silver from $1.25 to $88 an ounce. Hindsight is always 20-20. The trend will continue, and I will guarantee that, without a single doubt.
In Iran, according to a Journal (Wall Street) column on Wednesday, January 14th, beginning on the front page, with a headline reading, “The Bank Collapse That Shook Iran.” A sub-headline reads: “Bad loans to cronies sank Ayandeh Bank, accelerating a financial crisis.” The second paragraph says most of it. “Late last year, (the) Ayandeh Bank, run by regime cronies and saddled with nearly $5 billion in losses, on a pile of bad loans, went bust. The government folded the carcass into a state bank, and printed a massive amount of money to paper over all the red ink. That buried the problem, but didn’t solve it.”
Fourth paragraph: “The bank’s collapse made clear that the Iranian financial system, under strain from years of sanctions, bad lending, and reliance on inflationary printed money, had become increasingly insolvent and illiquid. Five other banks are thought to be similarly weak.” The story goes on in page 8, with pictures of the violence and details of what happened. A few quotes from the story: “The country’s beleaguered currency, the ‘rial,’ tipped into a new downward spiral the country had little ability to stop.”
“Iran’s economic collapse, was years in the making, but un-folded rapidly in recent months. The national currency lost 84% of its value, compared with the dollar in 2025. Food prices rose at an annual rate of 72%, nearly double the average in recent years. The country is also dealing with an energy and water crisis so severe, that President Masoud Pezeshkian, has proposed moving the capital out of Tehran.”
You’ll undoubtedly say, “That’s a horrible situation, and I’m glad we’re not in that condition.” We’re not? Think about it. We won World War Two, (the last war we won), with paper money. The war lasted three and a half years, and prices exactly doubled in three and a half years. Korea and Vietnam were also fought and paid for with paper money, and the resulting price escalation followed. As politicians continually buy their votes with promises of largess from the public treasury, those bills (over a trillion dollars a year), are paid with paper money created out of thin air by the Federal Reserve, and have been ‘loaned’ to the U.S. government at interest.
While we’re on the subject of the Federal Reserve, please note that it is costing $2.5 billion to ‘restore,’ and ‘modernize’ it, and the Fed will create the money out of thin air to pay for it, and there’s nothing that can be done about it!
Inflation hasn’t happened in America as quickly as it has in Iran, but it has happened and continually happens, at over a trillion dollars a year with paper dollars being used to pay the bills.
“Inflation: An increase in the currency supply.” Webster’s College Dictionary.
Both you and I have to pay our bills with paper money, or computer created paper money with credit cards, (21% interest if you don’t pay in full each month), but it is totally foolish to save surplus assets in dollars, when you can save in gold and silver which go up in dollars, as the infected, inflationary dollar goes down in purchasing power with prices escalating!
Delivered to you at 1% over our wholesale cost, and no, we don’t want your S.S. number.
-Don Stott. don@coloradogold.com