• Steve H. Hanke
    05/04/2016 - 08:00
    Authored by Steve H. Hanke of The Johns Hopkins University. Follow him on Twitter @Steve_Hanke. A few weeks ago, the Monetary Authority of Singapore (MAS) sprang a surprise. It announced that a...

Guest Post: The Mathematics Of Hyper-Inflation

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Tue, 02/01/2011 - 18:55 | 925536 Cheesy Bastard
Cheesy Bastard's picture

Scientific notation, bitchez.

Tue, 02/01/2011 - 19:15 | 925586 HarryWanqer
HarryWanqer's picture

A fantastic idea.  This could employ legions of scientists and engineers as consultants for those unable to read it.

Tue, 02/01/2011 - 19:31 | 925647 Michael
Michael's picture

Here is an excellent lesson on exponential functions.

The Most IMPORTANT Video You'll Ever See (part 1 of 8)

http://www.youtube.com/watch?v=F-QA2rkpBSY

 

Tue, 02/01/2011 - 19:49 | 925687 william the bastard
william the bastard's picture

I'll take Laos over chaos.

Tue, 02/01/2011 - 22:03 | 926009 luckylogger
luckylogger's picture

I understand what you are saying and in one hand it is true.

However, I have not seen any studies that compares the M2 money supply with the amount of money available befor the crash due to the shadow- banking system.

Has anybody seen a comparison and if so are we up to the asame amount of money available as we were in 2008?

From what I have seen is we are not. I am very interested in seeing creadible studies that either support or reject this theory.

thanks guys

Tue, 02/01/2011 - 23:08 | 926144 Richard Head
Richard Head's picture

The money supply has barely moved, because the printed money is largely being held as excess reserves held at the Fed.  It earns a sliver of risk free interest for the banks.  My data shows that of $1.7 trillion worth of QE, M1 has only increased by $168 billion in 2009 and $141 billion in 2010.  If the banks ever decide to start lending, which would require a genuine economic recovery and not the sham we are being fed right now, then the ~$1 trillion of excess reserves could turn into $14 trillion or so vis-a-vis the reserve multiplier.

Wed, 02/02/2011 - 09:36 | 926866 New_Meat
New_Meat's picture

I've often thought that the excess money 'printed' was actually replacing money that vanished when the CDS/MBS etc. nonsense imploded and vanished off of the balance sheets.

Wed, 02/02/2011 - 12:19 | 927561 Sausagemaker
Sausagemaker's picture

+1,  I had the same thought/question. Is the money being printed in an attempt to fill a trillion-plus MBS black hole?

Tue, 02/01/2011 - 23:59 | 926257 NrYC
NrYC's picture

Irreverently hilarious.

Tue, 02/01/2011 - 18:58 | 925546 tired1
tired1's picture

Question for me is: How do the banksters expect to escape the consequences?

Tue, 02/01/2011 - 19:00 | 925553 Dr. Porkchop
Dr. Porkchop's picture

Secret stashes of gold and island getaways in warm places.

Tue, 02/01/2011 - 19:32 | 925650 stewie
stewie's picture

The Doc is right.

Tue, 02/01/2011 - 19:52 | 925697 Bananamerican
Bananamerican's picture

Hell is an island?

Wed, 02/02/2011 - 08:07 | 926686 Sudden Debt
Sudden Debt's picture

Yes....

It's where all the hookers go to and where they party 24/7.

Hell....

 

FUCK HEAVEN!!! I'LL GO TO HELL!

Tue, 02/01/2011 - 20:34 | 925804 Milestones
Milestones's picture

Really?? If the Jews could track and find Mendella(?) in Argentina or wherever in the 60's how pray tell are these louts going to escape detection with Internet, instant photo I.D., DNA, GPS, etc. in todays world with of course the computer to follow them.

These "super brains" are also super idiots.   Milestones 

P.S. Run to Paraguay?? Put a million $$ price tag on their head and you can have it on a platter in 3 days.

Wed, 02/02/2011 - 02:05 | 926448 minus dog
minus dog's picture

This isn't Israel - and show me one of them who doesn't know about the holocaust.

Most people in this country are clueless about anything other than football, nascar, or American Idol.  How do you expect them to understand what happened, how it happened, and who did it, and then go find them?  If it gets bad enough to warrant the effort required to hunt someone down, then they're all going to be busy slaughtering each other anyways, and arguing that it was some other faction's fault.

Our public education system simply has not prepared people to comprehend what is going on.  They're told that things work a certain way, and then they are shown - or they believe they are shown - that playing by those rules is how to acquire a big house, big TV, and a bass boat.  Most of them will keep marching into their stupid cubicle farm jobs to the bitter end.

Wed, 02/02/2011 - 02:28 | 926482 Dash Riprock
Dash Riprock's picture

Gosh darn! Aren't you a FU*KIN genius! Do you have a million to strap to their head or are you going to be worried about eating?

Wed, 02/02/2011 - 04:00 | 926573 DeltaFunctionToronto
DeltaFunctionToronto's picture

 

Allow me to explain:

There is a causal relationship between banking (both investment and central) incompetence (immorality) and the corresponding inflation derived therefrom. Largely, global food price inflation is a function of Western government monetary base expansion in the long run, as this has a prodding impact on the monetary aggregates of countries world-wide.

Given out of control monetary base expansion due to the above mentioned incompetence (immorality), lower median income level jurisdictions, such as outside urban and rural parts of Asia, will experience increasing levels of unrest. This is currently visible as an ensuing effect, and will become more pronounced in the months to come. The mandate of the Governments established in many of these regions, under girded by cultural responsibilities and personal constitutions, implies a need to do the following:

 

a) address instability, first and foremost, to stabilize the domestic security situation both in terms of violence and market prices;

b) establish and preserve public confidence in the ability of Government to effectively remedy the situational conflict;

c) ensure there is a preventative mechanism in place to avoid a future occurrence;

d) appropriately allot justice to the perpetrators.

 

Which of the above is most simply carried out to provide the domestic citizenry appeasement?

It costs a government, especially one as large as China's, nothing to employ currently commissioned intelligence assets for this specific purpose.

I hear all this talk of island destinations and South American or African getaways -- it means absolutely nothing. If there is a political incentive, such as the publication of capture of a responsible miscreant, to say nothing of the economic incentive to "coerce" their gold from them to add to your own central bank holdings, they will not be able to get far.

Records of position, pay and responsibilities from nearly every major governmental or non-governmental (usually financial) entity are commonly sought assessments by intelligence agencies, to establish rapport in order to penetrate nodes of weakness in relationships and security measures. Particularly interesting information that comes to light is used to coerce and compromise.

Why are these individuals not currently targeted?

 

Intelligence assessments establish value thresholds, or conditions which must be met in light of associated contingencies, prior to acting, in order to minimize potential harmful outcomes.

 

These individuals are still largely protected by the State's monopoly on protection and violence from external entities, much like the Fed protects the identity and business of its middle-men.

 

In time, the state loses this incentive when its upkeep becomes more costly that the purported benefit. This would be when the G6 loaded with Credit Suisse bars heads for Argentina, in an attempt to ensure a continued monopoly on violence protecting the individual is shifted to the local domestic government.

The assumption is that “I will be safe – why would anyone suspect a thing of me in Argentina?”. This is the single invalid assumption of the perpetrator – that there is no economic or political incentive to pursue him or her outside of their original domicile, and thus all other considerations are void.

 

This is what arrogance, immorality, and a failure to understand other cultures provides.

 

Much like their tenacity in prosecuting and executing those responsible for fraudulent financial transactions, they will pursue culprits of mass financial crime internationally. Take my word for this.

Wed, 02/02/2011 - 08:24 | 926699 Snidley Whipsnae
Snidley Whipsnae's picture

lol... With all the sophisticated equipment at their disposal the various gov agencies have not found the worlds tallest and probably most infamous Muslim, Osama Bin Laden.

Of course, they might not be looking for him or he might have been an electonic construct from the beginning.

A fairy tale bogeyman?

Tue, 02/01/2011 - 19:56 | 925704 FunkyMonkeyBoy
FunkyMonkeyBoy's picture

Checkout what they are constructing under Denver airport.

http://vigilantcitizen.com/?p=58

Wed, 02/02/2011 - 01:13 | 926376 Bob Sponge
Bob Sponge's picture

Very interesting. Thanks.

Wed, 02/02/2011 - 06:54 | 926645 Confused
Confused's picture

Damn, just when I thought I couldn't get any crazier. Thanks for sharing. 

Wed, 02/02/2011 - 08:05 | 926664 slewie the pi-rat
slewie the pi-rat's picture

 

Tired 1 sez: Question for me is: How do the banksters expect to escape the consequences?

Ans.: they are super-intelligent master criminals, and there is nothing we can do.

just kidding.

actually, they are just a bunch of thugs, like the Beagle Boys in "Uncle Scrooge" comics.  Remember when we were kids:  how could the folks in Duckville be so DUMB as to not see this?

just maybe we are so well conditioned to be sheep that they just do it plain sight, while the vast majority, who "pay attention to the imortant news of the day in the MSM, by watching TV" think everything is fiiiine because we MUST pretend not to notice. 

wtF?  well, even tho virtually ALL of us know the story about "The Emperor With No Clothes",  very few seem to have escaped the conditioning that this does NOT apply to ME.

in that story, the person who notices is a "child" who just blurts out:  BUT THE EMPORER HAS NO CLOTHES!!!

the "little child" is not conditioned to pretend that the absurd is normal.  the child is still REAL.  hasn't been "taught" that to step out of line and NOT be one of the sheep is VERY dangerous to the mentality, comfort, and "homeland security" of the dumbass (conditioned) sheep herd.

if this had not been a child, the "society" would have come back with a death sentence.

over the top?

ask "socrates":  death by hemlock for CORRUPTING THE YOUTH.

ask "jesus":  death by crucifixion for "claiming to have divine power" to HEAL THE BLIND SO THEY COULD SEE.

ask "martin luther king":  he had a DREAM(!) and, when he shared it, people started to UNDERSTAND EACH OTHER MORE DEEPLY.  Ka-BOOM!!!

Tue, 02/01/2011 - 18:58 | 925548 Dr. Porkchop
Dr. Porkchop's picture

Exponents are a bitch.

Tue, 02/01/2011 - 19:13 | 925584 umop episdn
umop episdn's picture

Exponential curves, bitchez.

http://www.youtube.com/watch?v=F-QA2rkpBSY&p=6A1FD147A45EF50D

This lecture will instill the fear of exponential growth in anyone who cares about the future.

Tue, 02/01/2011 - 19:26 | 925622 whatz that smell
whatz that smell's picture

chronoexpogrowphobia. i shudder.

Tue, 02/01/2011 - 19:44 | 925676 samsara
samsara's picture

The Second part should be manditory viewing by everyone.

http://www.youtube.com/watch?v=Pb3JI8F9LQQ&feature=relmfu

and Part III

start at :50 seconds

http://www.youtube.com/watch?v=Pb3JI8F9LQQ&feature=relmfu

Tue, 02/01/2011 - 18:59 | 925550 NOTW777
NOTW777's picture

"socialistic government policies rely on accelerating monetary inflation"

ben and obama

karl and marx

Tue, 02/01/2011 - 19:02 | 925557 CowboyMonkey
CowboyMonkey's picture

Corn closed at 666...coincidence......I think not

Tue, 02/01/2011 - 19:04 | 925562 NOTW777
NOTW777's picture

soybeans +25

Tue, 02/01/2011 - 19:51 | 925691 william the bastard
william the bastard's picture

In your socialist fury you missed the irony.

Tue, 02/01/2011 - 19:02 | 925558 robertocarlos
robertocarlos's picture

The crisis is over. Except for housing.

Tue, 02/01/2011 - 19:52 | 925699 william the bastard
william the bastard's picture

sarc meter=10?

Tue, 02/01/2011 - 20:17 | 925771 robertocarlos
robertocarlos's picture

Mine goes to eleven.

Tue, 02/01/2011 - 20:39 | 925818 Cheesy Bastard
Cheesy Bastard's picture

Why not make ten 1 snarkier?

This goes to 11.

Tue, 02/01/2011 - 19:03 | 925559 buzzsaw99
buzzsaw99's picture

genben can fix this in like 15 minutes.

Tue, 02/01/2011 - 19:10 | 925578 asdasmos
asdasmos's picture

but can he tender his resignation in that same 15 minutes as well?

Tue, 02/01/2011 - 19:29 | 925633 buzzsaw99
buzzsaw99's picture

That would put Sack and Frost out of work too.

Tue, 02/01/2011 - 19:35 | 925657 stewie
stewie's picture

He was referring to an Inception-type "15 minutes" where his "15 minutes" feel like 15 years to us, on the outside of his recursive mind-fuck.

 

 

Tue, 02/01/2011 - 19:51 | 925690 buzzsaw99
buzzsaw99's picture

Well, in theory he could but that would mean stepping on the tbtf execs necks, those same execs who own hizzazz. Theory works, implementation, not so much.

Tue, 02/01/2011 - 19:10 | 925564 Caviar Emptor
Caviar Emptor's picture

Simply put: what if the roller coaster just kept zooming higher after the rails already started going lower? What if the G-force set in motion from the whip-turn at the bottom just made the cars coast into space instead of being guided to a soft landing? Man what a final flameout that would be! That's what might happen to prices despite the Fed's vain attempts to guide them lower. 

Tue, 02/01/2011 - 19:05 | 925565 I think I need ...
I think I need to buy a gun's picture

ok so there is no difference between communist soviet union and free capitalist america. So does this end gold 36000 or is all the muni debt mortgage debt and all other debt wiped out and we end up like argentina. And with 36000 gold they go and buy all the bridges roads water companies and everything the us sheeple need to survive.

This was planned. Look back at the last 10 years they knew where they were going all along.

Peter Schiff circa 2007 "the only thing left will be all the debt we owe to foreigners"

Tue, 02/01/2011 - 19:12 | 925581 Caviar Emptor
Caviar Emptor's picture

It's called presiding over the demise, making sure it's as gradual as possible and striping the carcass clean of anything of value that remains by those with the power to do so

Tue, 02/01/2011 - 19:28 | 925631 potatomafia
potatomafia's picture

Peter Schiff FTW!

Tue, 02/01/2011 - 19:59 | 925718 william the bastard
william the bastard's picture

why?

Tue, 02/01/2011 - 20:36 | 925814 robertocarlos
robertocarlos's picture

It ends with me on the street selling my leather shoes.

Tue, 02/01/2011 - 19:07 | 925567 Gashole
Gashole's picture

 Newbie question:  Why won't the Fed simply be able to quickly tighten and remove liquidity?

Tue, 02/01/2011 - 19:14 | 925590 Rainman
Rainman's picture

All.Ponzi.collapse

Tue, 02/01/2011 - 19:19 | 925599 whatz that smell
whatz that smell's picture

die.ponzi.die.

until the last dollar is destroyed this beast will rampage. 666$999.

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