This causes hyperinflation, doesn't it?
http://research.stlouisfed.org/publications/usfd/page3.pdf
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"Even when leftists talk about discrimination and sexism, they're damn well talking about the results of the economic system" ~Neodoxy
Nope. The term hyperinflation is misleading as inflation is a monetary phenomina, what most of the world considers hyperinflation, the rapid increase in prices of goods as the value of the monetary unit decreases in value, is an effect of previous inflation. The only mechanism to produce rapid increases in prices is massive inflation from a central bank that has monopoly control over the value of the currency and has only that currency through the use of force on the economy. The graph you have is a measurement of the inflation. The central bank, the Federal Reserve Bank, has already created the inflation. It is not hyperinflation, yet.
I wish I could believe that the actions of the world central banks will not create hyperinflation but I have my doubts. The US central bank has just created over a trillion US dollars by buying bonds directly from the government. This is the creation of hyperinflation as there is nothing to stop the central bank from doing with tens or hundreds of trillions or even more.
I also think it's worth noting that people forget what actually qualifies as hyperinflation, namely price inflation exceeding 50% a month. This will not happen in the US anytime soon.
alansmithee: I also think it's worth noting that people forget what actually qualifies as hyperinflation, namely price inflation exceeding 50% a month. This will not happen in the US anytime soon.
Agreed. I definitely can see high inflation, in the range between 10% and 25% per year, but not 50% a month.
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James Turk believes we may experience hyper-inflation in the next 12 months.
http://www.financialsense.com/fsn/main.html
http://www.netcastdaily.com/broadcast/fsn2009-0321-1.mp3
check out last 15 minutes.
Also to note, Financial-Sense and Jim Puplava follows Austrian Economics.
http://en.wikipedia.org/wiki/Hyperinflation lists 33 countries which have experienced hyperinflation! Though the definitions in that list varies and exact inflation isn't spelled out for all those countries. And I think they could maybe add Finland, which took off 2 or 3 zeroes of their Markka sometime after WW2. And what about Italy? Maybe they didn't really "hyper". Anyway, it was a surprise to me how common it has been with very-high-to-hyper inflation, even "in our time". I think I counted that half, or about 16, of those cases occuring 1980 or later, i.e. after the stagflation of the 1970s.
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