National median home prices down 33% in the past 12 months in gold terms as the dollar destructs

Looks like some of you are struggling with the concept of inflation, money supply and hyperinflation, figuring "it can't happen here". Especially some who think you can't have inflation unless wages are rising. 100% incorrect. The two are not linked. Whereas inflation and money supply are.

Meanwhile, for hints of our currency destruction and seeds of hyperinflation, gold is at $800 and oil is at $100, and a burger in a pub over here is $22. Gee, weren't those three things a bit cheaper just a bit ago?

So remember, housing prices in America have crashed, are crashing and will continue to crash for years to come. Real house prices that is. That fact is not disputed - it's how you keep score that's the challenge.

When lying realtors on commission, the deceptive monkeys at the NAR, the lazy MSM and the clueless Bush Administration trumpet that home prices are only down single digits, and when they fall again next year another 5% to 10%, don't forget you have to do your own math.

Unfortunately, you won't be able to use the "official" inflation reading, especially the "core" inflation number that doesn't factor in food or energy. Nope, you'll have to do your own hyperinflation tracking and math. And for the truest measure, adjust home prices against the price of gold, the only true currency (gold-weighted home prices are down 33% this year already - see yesterday's post).

The very fact that home prices are falling in an inflationary period show you how bad the crash truly is.

Here's more on hyperinflation. Start giving this some more thought HP'ers. You'll be glad you did.

In economics, hyperinflation is inflation that is "out of control," a condition in which prices increase rapidly as a currency loses its value. No precise definition of hyperinflation is universally accepted. One simple definition requires a monthly inflation rate of 20 or 30% or more. In informal usage the term is often applied to much lower rates.

The definition used by most economists is "an inflationary cycle without any tendency toward equilibrium." A vicious circle is created in which more and more inflation is created with each iteration of the cycle.

Although there is a great deal of debate about the root causes of hyperinflation, it becomes visible when there is an unchecked increase in the money supply or drastic debasement of coinage, and is often associated with wars (or their aftermath), economic depressions, and political or social upheavals.

HYPERINFLATION!!!!!! The US dollar destruction is here as gold and oil hit new highs

Got commodities?

Remember when people mocked HP'ers for saying gold and oil would soar and the dollar would collapse? Bet they feel like fools today.

Ben Bernanke hates you, especially if you earn or save US dollars. So invest accordingly, especially if the idiot cuts rates again this week.

Dollar and oil hit new records

Oil hit a new record high of $93.80 and the dollar struck a new low yesterday as investors showed their growing certainty that the US Federal Reserve will cut interest rates on Wednesday.

The same conviction also saw gold approach $800 a troy ounce – its highest price for 28 years – while equities made gains. The move into gold reflects how investors fear rising inflation from the twin forces of higher oil prices and a weaker dollar