End of Hyperinflation

[tmosley]

Hi All,

I was wondering, we all know what happens during hyperinflation. What I'm interested in is the endgame. Things can't just get worse forever, so how do nations or economies experiencing hyperinflation get out? How long does it usually take? What does the nation usually look like when compared before and after the hyperinflationary period?

Thanks.

[heavenlyboy34]

Hi All,

I was wondering, we all know what happens during hyperinflation. What I'm interested in is the endgame. Things can't just get worse forever, so how do nations or economies experiencing hyperinflation get out? How long does it usually take? What does the nation usually look like when compared before and after the hyperinflationary period?

Thanks.

Well, Zimbabwe would be a good case study for you. However, it would be more accurate (and more interesting) to study an imperial power such as Rome.

[FindLiberty]

Hyperinflation is bad. When it's less expensive to burn the $1 fiat bill for heat than it costs to purchase wood, coal or gasoline, you know it's very bad.

They will introduce larger denomination bills (I predict the $10,000 Obama FRN) and another clue is when they only print on one side of the fiat "paper" in order to save "printing expenses".

Maybe we should immediately start an educational campaign to print "inflation warnings" on the blank back side (or attach sticky note warnings to all the existing fiat money we exchange today) that follows the latest "Cigarette pack graphic picture warnings" dictated by the nanny state:

http://www.breitbart.com/article.php...show_article=1.

Photo caption idea that uses the exact same photograph shown first at the above URL: "Here we see the
BOOT MARKS ON THE NECK LEFT HERE BY TYRANTS WHO WILL TAKE AWAY YOUR
WEALTH AND FREEDOMS AS THEY EAT OUT YOUR SUBSTANCE VIA HYPERINFLATION!"

[jonahtrainer]

Hi All,

I was wondering, we all know what happens during hyperinflation. What I'm interested in is the endgame. Things can't just get worse forever, so how do nations or economies experiencing hyperinflation get out? How long does it usually take? What does the nation usually look like when compared before and after the hyperinflationary period?

Thanks.

A critical question is posed: Repression or Regeneration?

Examples of Regeneration: US 1787 Revolution and 1796 France

Examples of Repression: 1923 Gemany and 2006 Zimbabwe

[theoakman]

Hi All,

I was wondering, we all know what happens during hyperinflation. What I'm interested in is the endgame. Things can't just get worse forever, so how do nations or economies experiencing hyperinflation get out? How long does it usually take? What does the nation usually look like when compared before and after the hyperinflationary period?

Thanks.

well, the government usually goes bankrupt. A new government forms. Usually, the period after hyperinflation is a nice renaissance based on hard work, saving, and sound money. The unfortunate part is that some crazy dictator is usually able to grab power during the collapse in the government. Hitler grabbed power as a result of Germany's hyperinflation in the 1920s. Their economy came out like gangbusters once they moved past the hyperinflation.

The US still has a lot of infrastructure and well educated people in this country. We'll be able to dig ourselves out of the mess in the long run. The problem is, the government is in the process of turning a little septic tank runoff into a full fledged $#@! storm.

[tmosley]

A critical question is posed: Repression or Regeneration?

Examples of Regeneration: US 1787 Revolution and 1796 France

Examples of Repression: 1923 Gemany and 2006 Zimbabwe

Thank you. A follow up question would be, what do you think would be the best way for the "little guy" to make money off of either situation, assuming before hyperiinflation he had purchased about 200 oz of silver, owned his home (but was still paying a mortgage, but head is above water), and was well educated.

Awfully specific, I know, but hey, you gotta look out for #1, you know!

[LibertasPraesidium]

The I would propose a coup to get RON PAUL in office as dictator

[nate895]

The government issues a new sset of currency, or collapses. So we'd have "New" Dollars and "Old" Dollars.

[weatherbill]

Hyperinflation will be the route taken instead of recession for the following reasons

#1 - The government has massive debts that need to be paid. If a big slowdown comes, they will not be able to raise enough revenue to pay the bills.
#2 - Hyperinflation makes for liquidity and that's all you hearon tv, how banks need more liquidity to keep the economy rolling.
#3 - Ben Bernthebanke has indicated which he would rather go, to inflate
#4 - inflation buys everyone more time before the whole house of paper collapses
#5 - Human nature is very leaned towards keeping the status quo and freezing markets thru illiquidity is the opposite direction of what has been the status quo inflationary policies for some time now.
#6 - Inflation makes the banksters happy becasue they make mor emoney with inflation than in recession.
#7 - The war machine needs inflation to keep money in the coffers and to keep up with the world wide maintenance costs of policing the world.
#8 - Inflation give more time to sell off the dollar and stocks before it all comes to a death spiral.
#9 - Public opinion will be swayed by the social engineers of monetary policy thru shaking markets and economies so to make the peopl ecry out for more money.
#10 - Because the media is 90% INFLATION PUNDITS AND 10% REALITY THINKERS
#11 - becasue 2012 is coming and something terrible is going to happen that will crash the whole thing anyways?

tHERE AR EMORE REASONS, BUT TO BE FAIR, let';s give recession a fair go
ok, reasons for a recession
#1 - Becasue it brings reality to the markets
#2 - because short sellers will want bigger profits
#3 - becasue China, Russia, Saudis and others want their FRNs to keep their value.
#4 - because the banksters want to bring america to its knees thru defaulting on its debt in order to remove her power, to introduce the Amero?
#5 - the world needs a big slow down ( i'm running out of reasons....someone help me)

LOL........ I can;t think of any others, If you can post them, but it seems we will have both going on, inflation and recession, called stagflation

[theoakman]

The I would propose a coup to get RON PAUL in office as dictator

we don't need a dictator. George Washington wasn't a dictator.

[gonegolfin]

Hi All,

I was wondering, we all know what happens during hyperinflation. What I'm interested in is the endgame. Things can't just get worse forever, so how do nations or economies experiencing hyperinflation get out? How long does it usually take? What does the nation usually look like when compared before and after the hyperinflationary period?

Thanks.

At some point during a hyperinflation, the currency becomes intransactable. That is, the currency becomes so unstable that it can no longer be used in commerce. It is at this point where the currency must be replaced and a massive deflation and depression sets in.

The Fed has just begun to inject significant net new liquidity over the last couple of weeks. Up until this point, the monetary base has only grown a bit over 2% (since the credit crisis began last August). We will know more when the first set of new TAF auctions are held. If the Fed does not sterilize this new $300 billion of injections, then we will know that the money spigot is wide open and you will see the monetary base take off. But even if the Fed goes the inflation route, I have serious questions as to whether they can combat the significant deflationary forces already in play (and to come). Simply printing hordes of money does not always result in hyperinflation. Bringing interest rates down to 0% and holding it there for long periods of time runs the risk of falling into the "liquidity trap". Japan experienced this first hand. And because of their misguided efforts of trying to inflate their way out of a serious deflation, they were rewarded with 15 years of pain. Cash piled up in bank vaults. They are just climbing out of it and are about to plunge right back in.

Brian