Hyperinflation
Has John Williams' Hyperinflation Thesis Been Delayed As Core CPI Comes In Flat?
Submitted by Tyler Durden on 12/16/2009 11:42 -0500
Recently, an extended analysis by Shadow Stats' John Williams evaluated the risk of a hyperinflationary episode as one which has the potential to come as soon as next year. Somewhat in support of this theory yesterday's read of PPI came in above consensus, indicating that inflation may indeed be coming. Yet today's CPI data, whose core read came in at 0.0%, may have just poured a whole lot of cold water over Williams' thesis. Nonetheless, at the end of the day Williams may be right: the question remains - if and when the excess reserves start hitting the broader currency (as the Fed is scared shitless to withdraw liquidity on its own), we may experience a transition from deflation to inflation so rapid, that is has no historic analog. At the end of the day deflation will likely be the name of the game for quite some time, until such point as "Man of the Year" Bernanke finally flips (the turbo print switch on), and any pretence of prudent monetary policy is thrown out of the window. At that point, look for the stock market to promptly go to 36,000 followed by an even faster drop to 0, all the while the dollar gets hyperdeflated (Zimbabwe redux). With the Administration set on not losing the midterm elections by a landslide, don't expect much in terms of economic experimentation at least until 2011. At that point, all bets will be off as the Fed will likely have at most 2 more years of shelf life before both its, and thus Wall Street's, life support are forcefully yanked out.
Saved By 12 Zeroes; Zimbabwe Gets Creative in Battling Hyperinflation
Submitted by Tyler Durden on 02/02/2009 14:02 -0500
In what may not be the most effective way to battle hyperinflation, Zimbabwe Central Bank governor (now that is a misnomer) Gideon Gono is making "its foreign exchange more transparent" and cutting 12 zeroes from the currency, i.e. a trillion to one exchange conversion.
Whither Hyperinflation
Submitted by Tyler Durden on 01/28/2009 21:52 -0500
It seems there are two sorts of people out there right now: those who say that no matter how much money the government throws at every problem it will never result in hyperinflation, and those that say that hyperinflation is now an inevitability regardless of what actions are taken fr
Whither Hyperinflation
Submitted by Tyler Durden on 01/28/2009 21:52 -0500It seems there are two sorts of people out there right now: those who say that no matter how much money the government throws at every problem it will never result in hyperinflation, and those that say that hyperinflation is now an inevitability regardless of what actions are taken fr
