I have serious doubts about hyperinflation, but listening to those that believe it is coming have been given some crediability with the housing disaster. The following video was produced by Inflation US. I know little about this organization, but it is the people who are seen in the video who I do know, such as Ben Bernanke. Ron Paul and many others. It is worth watching and taking into consideration what has already happened and what might be yet coming.
The longer we go without allowing interest rates to correct the market errors FED policy has created, the more dire the day of reckoning. The questions become, how long can the pressure cooker take unlimited heat without blowing and what will trigger true hyperinflation? The first is unknowable. My thoughts on the second are these. Money creation is the cause of inflation. We have already created trillions dollars which are being dispersed to the banks. This money is just sitting there because banks are afraid to lend it in these uncertain times, unless it is completely secured. Also, the public is equally afraid to borrow money for the same reasons. In my view, the risk of hyperinflation comes when the economic times improve as banks are more willing to loan and people more willing to borrow. Then, trillions of dollars will flow into circulation which will further dilute wealth and bid prices up.
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