Risk of hyperinflation serious now?

[CDMA ENG]

Mish talks about the subject a lot and is very negative on this idea citing that many, many predictions have turned out false and states the reason why.

Check out his site.

CE

[scaredyclassic]

[quote=scaredyclassic]Mercury dimes.

Or Roosevelt dimes.[/quote]

ebay or apmex

[livinincali]

[quote=CDMA ENG]Mish talks about the subject a lot and is very negative on this idea citing that many, many predictions have turned out false and states the reason why.

Check out his site.

CE[/quote]

Well this post was originally created in 2011. 3 years later and there’s still no hyper inflation and likely won’t be. Maybe hyperinflation in San Deigo home prices over the past year?

[paramount]

‘Your looking at hyper-inflation as demand push, it is not. Hyper-inflation and price inflation are 2 very different animals. Look at college tuition in the U.S.: 1100% increase since 1980, the highest rise of any consumer cost. Is that hyper inflation in tuition? Where was the hyperinflation in the 2000′s bubble? we had a huge credit expansion.
Hyper-inflation is loss of faith as in currency destruction. When governments solves problems by creating more FIAT faith is eventually lost. Look at Weimar: for a few years money printing solved all their problems and everything was good until it wasn’t.
I wish people would stop tying hyper-inflation to consumption.’

[CDMA ENG]

[quote=livinincali][quote=CDMA ENG]Mish talks about the subject a lot and is very negative on this idea citing that many, many predictions have turned out false and states the reason why.

Check out his site.

CE[/quote]

Well this post was originally created in 2011. 3 years later and there’s still no hyper inflation and likely won’t be. Maybe hyperinflation in San Deigo home prices over the past year?[/quote]

Ding Ding Ding!

+1

Mos Def…

CE

[EconProf]

Let’s drop this silly subject of imminent hyperinflation. It has been predicted for years now, and has not happened. In fact, the Fed, the EU, and many economists now say the bigger threat is deflation. The fact that one of these scaremongering posts forecasted terrible coming inflation in 2011, and the fact that average inflation only decreased since then tells us how much credibility we should assign to them.
Their fears are based on monetarism, the economic theory pushed by Milton Friedman that an increase in the money supply (M1, M2, etc.) quickly translates into inflation. However, Friedman also took into account the velocity of money–how quickly it changes hands. Because of structural changes in our banking system and people’s desire to hold on to liquid assets, velocity has slowed way down. Accordingly, though the Fed has rapidly increased the money supply in order to stimulate the economy, these structural changes have offset the stimulus, so major inflation has not occurred.
So as a school of thought, Monetarism is not dead, it simply must be properly applied. Indeed, hyperinflation may still occur some time in the distant future, but there is no sign of it now.

[scaredyclassic]

What does “imminent” and “distant future” mean to you econprof?

To me the words mean within 10 years and after I’m dead, respectively.

[EconProf]

I’ll tell you later.
When we economists make forecasts, we like to use those fuzzy words to be able to define them later and then be able to say “Yep, I predicted that”.

[scaredyclassic]

Now that is silly.

[FlyerInHi]

[quote=scaredyclassic]What does “imminent” and “distant future” mean to you econprof?

To me the words mean within 10 years and after I’m dead, respectively.[/quote]

Good definition.

If one is 60yo, imminent and distance future are almost the same.

[moneymaker]

I think the reason we haven’t had this inflation is because our money supply is not on our shores. A lot of it is overseas and hence not really part of our economy at the moment. If all that money were to come pouring back (and it could) then we would have the expected inflation. So the question is when will we no longer be considered a safe haven to other countries? As soon as the rest of the worlds economy starts to recover in my opinion. Which, also my opinion, will be slowly and steadily. Assuming no unforeseen calamity we will have steadily rising inflation until all the hourly workers are poor.

[livinincali]

[quote=moneymaker]I think the reason we haven’t had this inflation is because our money supply is not on our shores. A lot of it is overseas and hence not really part of our economy at the moment. If all that money were to come pouring back (and it could) then we would have the expected inflation. So the question is when will we no longer be considered a safe haven to other countries? As soon as the rest of the worlds economy starts to recover in my opinion. Which, also my opinion, will be slowly and steadily. Assuming no unforeseen calamity we will have steadily rising inflation until all the hourly workers are poor.[/quote]

Money and credit spend the same. You need to look at money supply plus total credit outstanding. Credit is far bigger than the money supply and has been growing much slower than the previous parabolic advance. Unless we get really loose lending standards and a bunch of people taking on new debt I don’t expect to see much inflation.

[FlyerInHi]

[quote=moneymaker]I think the reason we haven’t had this inflation is because our money supply is not on our shores. A lot of it is overseas and hence not really part of our economy at the moment. If all that money were to come pouring back (and it could) then we would have the expected inflation. So the question is when will we no longer be considered a safe haven to other countries? As soon as the rest of the worlds economy starts to recover in my opinion. Which, also my opinion, will be slowly and steadily. Assuming no unforeseen calamity we will have steadily rising inflation until all the hourly workers are poor.[/quote]

If and when we are no longer considered a safe haven, the money will flow away from our shores.

[The-Shoveler]

Depends on what you think hyperinflation is.

10% inflation is not hyperinflation to me, it is high inflation but not hyperinflation.

>30% is hyperinflation to me which I think is extremely unlikely.

but 10% inflation is very likely IMO

The Raise the minimum wage is really gaining steam IMO.
Jesse is right also MO.
Work 40 or more hours a week, earn a living wage, like it or not I think it is coming.

http://video.cnbc.com/gallery/?video=3000269436&__source=yahoo%7cheadline%7cquote%7cvideo%7c&par=yahoo

(well at least in this subject), he is probably mostly right in a lot of other things but he does take it to a bit of an extreme.

[spdrun]

A lot of min wage schlub jobs can be automated away or made redundant, and you don’t have to pay robots’ health plans 🙂 Who says that that money will ever see the economy?

[Author]

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