Gyroscopic Investing

Hello. 

I have been reading these forums and trying to get my head around gold....and whether or not I really need it.  In the previous thread, someone mentioned Jim Sinclair.  I would like to quote another one of his remarks:

"Currency induced cost push inflation is what will collapse confidence overnight and cause an explosion in the velocity of money in three days. Study history. It has happened before and will happen again. Although you will not want to hear this, it is true."

Can someone provide a list of episodes where currency induced cost-push inflation has led directly to an explosion in money velocity?  I think Sinclair and others who promote gold should provide some examples, if they want people to believe them.  I never thought inflation was this easily created.  I am willing to be proved otherwise if someone could provide some historical examples.

Thanks,
Gary

Slotine wrote: I'll be nice and just say it's the random crap mutterings of a madman.

The closest thing the US has experienced to a cost-push inflation was the 73/78's bout. 

http://www.nber.org/chapters/c9160.pdf

Thanks for the link... Interesting read.  I hadn't realized there were so many theories on what happened during the 70s.

That said, M2 velocity did not go through the roof in three days...

Yes, I'd say that is a slight exaggeration.   

He might have also meant the group of currencies that have failed spectacularly in the past.  Half of them you might be tempted to call cost-push as they mostly failed due to government intervention of labor markets, civil war, or corruption.

http://www.mint.com/blog/trends/hyperin ... urrencies/

I missed the above link on first read.  Will check it out.