Antal E. Fekete makes some interesting points about hyperinflation vs. hyperdeflation...

jmski52

cohodk, is this what you see happening?

The Black Hole of Zero Interest..............another look at the bond market ponzi scheme

ebaytrader

Interesting viewpoint.



<< <i>...wholesale destruction of capital is taking place unobtrusively but none the less effectively. Deflation is the measure of wealth in the process of self-destruction -- wealth gone for good... >>



We are seeing inflation in consumables but deflation in durable goods and home prices. This is a mark of declining wealth - at a rapid pace.
People are saving $ of perceived declining value and will quickly trade it for essentials but not for non-essentials even at heavily discounted prices. People see themselves as much poorer today.

roadrunner

Nice to see a Dr. Fekete article that I can fully understand.

One key point is that hyperinflation occurs during periods of poor to horrendous business conditions due to a failing currency/extreme lack of confidence in govt. It does not occur when an economy is humming along or even overstoked (ie plain old inflation). Any number of world currencies are currently ripe for hyperinflation.

roadrunner