Hyper-inflation comming

[voytechs]

Everyone brace yourself. The grocery stores can not absorb the higher cost of food much longer and are going to raise prices dramatically soon.

Here is a table that seems to be way behind the times already even though it lists 2008 prices. Considering the source is a government agency, I'm not surprised, of course reality is something different when you go buy groceries yourselves.

I read somewhere that flower had jumped nearly 300% for pizza places from $9/bag to $23/bag. So I went to a local pizza place in NY (the owner had a Ron Paul for president sign in his window, I couldn't resist) and after that delicious pizza asked him if the price of flower had gone up on him, since I read about it. He told me that in the last month, the price went from $11/bag to what he had paid just that day of $35/bag. Thats 300% increase folks, and that is going to spill into almost everything else which is made from flower. I don't know the exact definition of hyper-inflation, but I would assume that anything over 100% increase qualifies as hyper.

(click on image to go to article)

http://cache.boston.com/bonzai-fba/Globe_Graphic/2008/03/09/1205052003_2261.gif (http://www.boston.com/business/personalfinance/articles/2008/03/09/surging_costs_of_groceries_hit_home/)

[bucfish]

yes the future looks very inflationary and what the FED did yesterday will only spread the inflation out to other countries. Helps are problem only temporary. Soon inflation will skyrocket

[raystone]

50% inflation in a month is considered hyper by definition. However, typically, somewhat lower rates will also be accepted as hyper.

[OptionsTrader]

Price is money supply.

[OptionsTrader]

Beans over the past 2 years
http://i32.tinypic.com/15z4gsi.png

[voytechs]

Price is money supply.

Just look at this money supply chart (which results in inflation). This chart goes up to 2005, but try and extrapolate those 2008 and you realize how bad things could really get:

(From wikipedia)

http://upload.wikimedia.org/wikipedia/en/thumb/9/95/Components_of_the_United_States_money_supply2.svg/570px-Components_of_the_United_States_money_supply2.svg. png (http://en.wikipedia.org/wiki/Money_supply)

[OptionsTrader]

Yep.

Here's a site I like with all the m3 and m3 derivative charts you need:

http://www.nowandfutures.com/key_stats.html

[voytechs]

Thanks for the link, I bookmarked it.

So the M3 is increasing at an astounding 18% right now. Of course the percentage keeps going up and plus the inflation actually hits with a big lag, some where on the order of 6mo or more.

In any case, we can see that the inflation has been at 10% or more, since middle of 2006.