Category: HyperInflation
The analysis published under this category are as follows.Wednesday, November 24, 2010
Hyperinflation is Most Likely to Strike Amidst Real Deflation / Economics / HyperInflation
Hyperinflation is not simply inflation times 10. It's most likely to strike – in fact – amidst a real deflation...
SO the FEDERAL RESERVE's second-round of quantitative easing, announced on November 3rd, was a shoo-in – a fait accompli – already decided when the policy team first sat down the previous day.
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Saturday, October 30, 2010
Signs Hyperinflation Is Arriving / Economics / HyperInflation
Back in late August, I argued that hyperinflation would be triggered by a run on Treasury bonds. I described how such a run might happen, and argued that if Treasuries were no longer considered safe, then commodities would become the store of value.
Such a run on commodities, I further argued, would inevitably lead to price increases and a rise in the Consumer Price Index, which would initially be interpreted by the Federal Reserve, the Federal government, as well as the commentariat, as a good thing: A sign that “the economy is recovering”, a sign that “normalcy” was returning.
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Monday, October 25, 2010
U.S. Fed Setting the Stage for Hyperinflation? / Economics / HyperInflation
Don Miller writes: The U.S. government wants to stimulate growth in the moribund economy by stoking the fires of inflation. But by leaving interest rates low and buying up bonds - a policy known as quantitative easing (QE) - the U.S. Federal Reserve risks debasing the dollar, which could lead to a prolonged period of hyperinflation that would send prices skyrocketing.
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Friday, October 15, 2010
Hyperinflation Multi-Trillionaires and Commodity Bubbles / Stock-Markets / HyperInflation
Is it time to throw fundamentals out the window?The boy from Zimbabwe is a multi-Trillionaire and those Trillions should be just enough to buy him a loaf of bread if he hurries to the store before they change the prices this morning. This is what is happening to our own economy, only on a smaller scale (so far). Our government, like Zimbabwe, has gotten into so much debt that they can never hope to repay it but new bills keep coming in every day so - What is a government to do?
Tuesday, September 21, 2010
Why Hyperinflation Isn’t Coming to the U.S. / Politics / HyperInflation
For more than two years now, many Americans have heard warnings of hyperinflation from the large consensus of misguided individuals, whose agendas serve as the basis for their ridiculous claims.
Much of this nonsense has come from the gold bugs and perma-bears, although it is often difficult to distinguish between the two.
Sprouting from this group of fear-mongers is a larger number of naïve followers whose mission is to also be inducted into the media club, while they too profit from selling gold ads and other financial arrangements made with gold dealers.
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Sunday, September 19, 2010
Was Stagflation Really Hyperinflation? / Interest-Rates / HyperInflation
Gonsalvo Lira writes: In his new post, Gonzalo Lira analyzes the Oil Shock of '79, and the subsequent run up in inflation. He comes to some interesting conclusions about 1979, and how those conclusions might apply to today, if and when there is a run on Treasuries. He writes: "In both 1979 and today, dollars were poised to chase after commodities, following a triggering event. In '79, it was the fall of the Shah of Iran. In 2010, we are waiting for our moment to exit the Treasuries bubble. Therefore, one can look at the events of '79–'82 as a dress rehearsal for what I think will happen today, and in the immediate future – if and when the Treasury bond bubble pops."
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Tuesday, September 14, 2010
The Hyperinflation Mirage / Economics / HyperInflation
The Fed can create as much money as it likes without any risk of inflation provided the money is tucked away where no one can spend it. And this, in fact, is what the Fed has done. They have exchanged $1.7 trillion in reserves for non performing loans and mortgage-backed securities with the banks. But the banks loan book continues to shrink. In other words, the Fed has increased the money supply, but in real terms, the money supply has shrunk. Thus, the Fed's so called quantitative easing (QE) program has failed to stimulate spending or lead to a credit expansion. Had the Fed chosen to take the $1.7 trillion and bury it in a hole on the White House lawn, the effect would have been exactly the same.
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Monday, September 13, 2010
Hyperinflation Against Deflation Debate / Economics / HyperInflation
Over the past few weeks, many people have asked me to comment on John Hussman's August 23, 2010 post Why Quantitative Easing is Likely to Trigger a Collapse of the U.S. Dollar.
Most wanted to know how that article changed my view regarding deflation. It didn't.
Wednesday, September 01, 2010
Hyperinflation vs. Inflation: Understand the Difference / Economics / HyperInflation
Hyperinflation and inflation may share the same root, but they're two entirely different trees. While many assume that hyperinflation is just inflation's oversized cousin, there is much more to hyperinflation than most are aware.
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Monday, August 23, 2010
Hyperinflation is a Fiscal, not Monetary Phenomenon / Economics / HyperInflation
Months ago we wrote about the true causes of hyperinflation. We proceed to expand upon our views as we disagree with the views put forth by John Mauldin, Mike Shedlock and now Jim Rickards who all focus on velocity and/or bank lending as important causes of hyperinflation.
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Thursday, August 19, 2010
Prepare in August for Hyperinflationary Holidays / Economics / HyperInflation
Ben Bernanke and the rest of the Federal Reserve are priming the pump for what could by a hyper-inflationary Christmas. While the Fed continues to build a pile of kindling, the spark could very well be this holiday shopping season.
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Thursday, August 12, 2010
How To Get Hyper-Inflation and Wing-Wham Un-Fund Liabilities …and Not Spill Your Drink / Economics / HyperInflation
I refer to the esteemed social and economic commentator P.J. O’Rourke’s learned treatise on, “How to drive Fast on Drugs While Having Your Wing-Wham Squeezed, and not Spill Your Drink”.
Substitute “create inflation” with “driving fast on drugs” and the delights of having your Wing-Wham squeezed with creating a pile of unfunded liabilities to be paid-off by a child you don’t acknowledge or aim to take care of, one fine-day, in the future.
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Monday, August 09, 2010
Hyperinflation Warning / Economics / HyperInflation
One hears much discussion of hyperinflation on the gold web sites. It is a worst case scenario and used to alarm and excite. It is used to designate a period when prices are rising very rapidly, the favorite example being Germany of 1914-23, and during this time prices rose by very close to one trillion times. That is, a piece of bread which started off costing 1 mark ended costing one trillion marks. So it is not merely in today’s world that we are using numbers above 1 trillion. But it is an instructive period of history, and we must always keep in mind that those who do not learn from history are doomed to repeat it.
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Friday, June 18, 2010
Investor Profit Opportunity in the Deflation to Hyperinflation Transition / Stock-Markets / HyperInflation
Deflation is the biggest worry now but it will turn into hyperinflation soon…We are poised at a heart-stopping moment in economic times…
Deflation is the issue now because money supply is actually declining…
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Thursday, May 27, 2010
The Path to Hyperinflation / Economics / HyperInflation
As we’ve discussed recently, persistent deflationary forces do not augur for a repeat of Japan circa 1990s or the US in the 1930s. Instead, because of the inability of government’s to finance their current and future debt burden (there is a dearth of domestic savings and global capital), deflationary forces will ultimately lead to severe inflation or hyperinflation. In today’s missive, we explain how this will happen but in various stages.
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Tuesday, May 18, 2010
HyperInflation Threat Real or Not? / Economics / HyperInflation
"Try not to become a man of success but rather to become a man of value." ~ Albert Einstein
Higher Gold and Petrol prices are one of the clearest signs that inflationary forces are gathering steam. Do not confuse inflationary forces with inflation; inflation is defined as an increase in the supply of money.
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Saturday, May 01, 2010
A Hyper-Inflationary Great Depression Is Coming / Economics / HyperInflation
ShadowStats' John Williams has done his math and believes his numbers tell the truth. He explains why the U.S. is in a depression and why a "Hyper-Inflationary Great Depression" is now unavoidable. John also shares why he selects gold as a metal for asset conversion in this exclusive interview with The Gold Report.
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Thursday, April 08, 2010
The Bright Side of Hyperinflation / Economics / HyperInflation
Despite encouraging words from politicians and the establishment media’s talking heads, it is clear to me, and I believe most Americans who do not live in a regime ivory tower, that we are not coming out of the recession. In fact, things appear to be getting worse as unemployment continues to rise and businesses cut salaries or shut down. The fears that this recession could turn into another Great Depression are very real, as we have lost so much of our capacity to create wealth and the federal government seems determined to use up any remaining capital fighting endless wars, funding endless entitlement programs, and spending trillions of dollars on non-wealth-creating "stimulus" programs while handing out even more trillions to their bankster buddies and corporate cronies. However, another 1930s-style depression is not what keeps me up at night with worry.
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Thursday, March 25, 2010
U.S. Policies Will Fail to Avert Hyperinflation / Economics / HyperInflation
The United States send weak economic signals insufficient for a meaningful and sustainable economic expansion required to gain back confidence of national and foreign investors, futureofdollar.com finds in the present research. Political decision-making process is paralyzed by numerous disabilities, while external market constraints obstruct economic recovery. Stagflation is an imminent danger.
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Friday, March 19, 2010
The Road to Hyperinflation / Economics / HyperInflation
Inflationism is a slippery road – the road to hyperinflation. The inflationist Bernanke Fed behaves as if they would not be “dialling back” from Quantitative Easing any time soon. They talk the talk, but can’t walk the walk. The inflationary genie is out of the bottle. Taming it back will result in a crushing deflationary collapse. The Fed will never let this happen again. They did it once during the Great Depression, they won’t do it again.
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