Here is some plain talk about how inflation works and how to protect yourself against it. Why is it important to know about it? Well, every paper currency that ever existed has failed, usually ending in massive inflation. Every single one. Without exception. And it has already started worldwide. It affects every paper currency.

I’m not talking about the usual, regular increase in the price of groceries. Or the fact that we can’t outwork inflation: it grows faster than we can earn money, hence our increasing debt levels and lowering of our standards of living. I’m talking about what will happen – WILL happen – when it escalates beyond the critical mass – when more than 10% of people realize and accept what is happening and there’s a run on the banks, something they have been preparing for for some time now. More about that later.

Most people have never seen this incredible report on World Hyperinflations, including 56 recorded hyperinflations, and when they do, they are astounded. This amazing article by Business insider, How 9 Countries Saw Inflation Explode Into Hyperinflation, details just how devastating hyperinflation is.

Paper money is simply a substitute for real money, which is gold. Paper money is “a trick of mirrored perceptions, a fragile alliance of pooled belief; so long as nerves hold steady and no bombs or wreckers are on board, everybody prospers. When there are failures, there will be no half measures.”*

And there will be no warning. Just like 2008, it will happen suddenly – overnight. You will be prepared or you will not be prepared.

To imagine that the US dollar is somehow magically exempt from the consequences of rising debt, “quantitative easing,” the uncontrolled printing of money, and the wasting of billions to placate the masses – a third of Americans are already on government handouts, the only reason why we don’t see the soup kitchens of the Depression – we’re simply in denial, extremely arrogant, or just plain stupid. It’s coming like a speeding freight train, and it’s too late to stop it no matter who you elect next.

The banks and governments know this. Central banks’ gold purchases close to 50 year high. And that is why they are making it more and more difficult for citizens to earn and keep cash, more and more difficult to draw their cash from the banks. It’s what Obama works so hard on seizing the guns of citizens, just like Hitler did in Nazi Germany. It’s why we can expect the US government to seize the gold of private citizens like they did before, and why the police are rapidly being militarized.

I could go on and on, but the question is, what can you do about this? First, get as much currency grade gold as you can, because currency grade gold cannot legally be seized by your government, and because the only thing of any value when your paper money loses 90% or more of its value will be gold. There will be a massive, instant transfer of wealth from those with paper money into gold money, so start moving your paper money into real gold money as soon and as fast as you can. I can help you with this. Even with easily storing some of your gold offshore. I can also show you how to obtain gold without buying it.

Secondly, build a strong support system of people who share your values.

And finally, prepare for the transition. Have enough gold in small enough denominations / weights that they are easy to trade, and carry an emergency supply of at least three months of water, food, and, yes, guns and ammunition. God, guts, gold, guns, and groceries. We’ll need all of them. You will either be devastated of very wealthy overnight. It’s your choice.

Robin Elliott LeverageAdvantage.com

* Ian McEwan, describing the fragility of air travel in “Saturday.”