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Old 02-07-2013, 12:14   #50
beforeobamabans's Avatar
Join Date: Jan 2009
Location: Crossroads of America
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Originally Posted by Flying-Dutchman View Post
There was deflation due to the housing bubble but hyperinflation is coming our way.

You can actually have both; deflation in housing and wages, yet inflation of daily necessities like food and fuel.

With hyperinflation you never see it coming. If you could, everyone would immediately get rid of cash buying anything of lasting value (which causes immediate hyperinflation).

And that is what will happen. First a few months of high inflation maybe 20-50%; then at that point everyone realizes the money is no good resulting in hyperinflation.
In theory, I suppose your scenario could happen but not this time. Hyperinflation requires too many dollars chasing too few goods. We've got the too many dollars part but we still have inordinate slack in factory capacity utilization even with the many plant closures we've already suffered through. You cannot have inflation without demand squeezing supply. I work for a manufacturer and I'm telling you, demand continues to erode. You factor in Obama's recessionary policies with the inevitable loss in demand from the retirement of the greatest demographic bulge in the history of our country and you have a decrease in demand (GDP) until the early to mid 2020s when the boomer echo bulge hits max consumption years. There is no way the fed can invent enough phony economic activity to keep it afloat. At some point, gravity will take over. Admittedly, there will be great moaning and gnashing of teeth.
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Last edited by beforeobamabans; 02-07-2013 at 12:18..
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