Gold, Money, Food, Fuel And Hyperinflation Warning Signs

When people think of hyperinflation, they think of money. And sometimes they think of gold versus paper money. However, to fully predict when hyperinflation occurs, you have to look at the Four Horsemen of the Hyperinflation Apocalypse: Gold, Fiat Currency, Food and Energy. Right now, all four are going up. Yes, even the dollar is stronger. But this list will show you their relationship and how they can predict hyperinflation.

Rank of importance, of the Four Horsemen, is key to understanding hyperinflation

Most people who read this article will probably feel that Gold is the most important of the four. And this is correct. However, it is when the majority of the population believe that gold is most important is when hyperinflation will hit.

Right now, if you told the average American they could have $1,000,000 worth of any of the Four Horsemen, it would probably rank like this.

1. Fiat Currency (Dollars)
2. Gold
3. Energy
4. Food

Why? Fiat Currency, or the dollar, can buy gas and food. And most people believe that the price of gold can vary too much, too quick (Which is true in the short term). The dollar seems to be the most stable asset that can be traded for other assets.

Now, let's say the value of the dollar is falling, and people find that there is a shortage of food and gas, the list may look like something like this.

1. Food
2. Gas
3. Gold
4. Fiat Currency

"Bull!" You exclaim. The average American will want gold! Well, in the face of no food and no gas, people tend to want what can satisfy them the quickest. And if people see no food on the shelf and the value of the dollar is dropping, you could see people who would prefer food and fuel over gold. Sure, smart people will want gold. But that just means that gold is become more valuable among a smarter core of Americans. But gold is not yet mainstream. Therefore, hyperinflation has not completely hit.

No let's say people who own gold begin to buy all the food and all the fuel companies. Stories begin to circulate about a guy who used one gold coin to buy an entire warehouse of food. Gold begins to take on mythic proportions among the Average Americans. Gold can buy entire buildings now! Gold can buy armed solders! Gold is God!

Now, offer the Average American $1,000,000 in either Gold, Fiat Currency, Food and Fuel. And the answer will look like this.

1. Gold
2. Food
3. Fuel
4. Fiat Currency

Gold is now as revered as the dollar has been. Gold is so powerful that people would override their instincts to eat. Because, while food can make you eat today, Gold can allow you to eat for a lifetime.

When Gold becomes more powerful than the Dollar AND food and fuel, then we will have hyperinflation

Quite simply, you may see the dollar collapse and no real hyperinflation because people may simply begin to barter food and fuel. However, it is when gold becomes more important than food, fuel and money, is when hyperinflation will truly become reality.