hyperinflation is gona happened again very soon as we see unprecedented amount of money creation happening all over.
You may be correct, ProfitsandLoss ... the rise in the price of gold may be the initial sign, as investors dump both Euros and Dollars in favour of the "useless yellow metal."
In my last foray into this thread, I was beaten off by the ridicule of those who know more than I do, for stating that the true sign of the beginning of hyperinflation, would be rising Bond Market Yields.
Anyone care to have a look at that lately?
My argument I base on what I see.
Their argument seems to be based on "hope it doesn't happen" ... or "faith in the system" because "smart men are in control who won't let it happen."
I have some "hope" too - I hope they are correct.
Now, compare the changes in the Greek Bond Yields, before their "rescue" with what is happening in UK and USA and EURO Bonds now, and I think my case will be seen to have legs.
There are a few ways that hyperinflation can be avoided.
One is to remove the risk of the created (Quantitative Easing) dollars and pounds getting into the system.
That may happen once the "crisis" of Sovereign debt collapse passes. We are not there yet, as the rising sovereign debt crisis seems to be only beginning. The money created through Quantitative Easing has yet to be released into the credit market.
Currently banks are not loaning much money, because they do not trust each other. Banks are not revealing the true extent of the toxic nature of the debt they hold on their books. The evidence of that is the continuing number of collapses of banks in the USA UK, and globally in 2010 (Spain, Ireland, Italy - you have heard all of this stuff already). Remember the panic and the run on the Northern Rock bank?
http://news.bbc.co.uk/2/hi/6996136.stm
But once central banks believe the crisis is over, they may begin to relax, and politicians may begin pressuring them to get the money out to their customers to stimulate GDP. This may unleash a flood of cheap money into the economies of the world, which may then fuel the kind of inflation that we truly fear.
That kind of inflation can be likened to a snowball rolling down a slope - it gets bigger and bigger as it rolls, until it ends as a shattered squish-ball of debris. The end of this crisis may well be triggered by a repeat of the situation which created it to begin with - easy and cheap credit.
Another way to end the crisis, is for banks and governments to begin to forgive debt, but that wouldn't be too popular with the likes of JP Morgan Chase and Goldman Sachs I shouldn't imagine.
There are other ways, and they will eventually become clear, but would be misunderstood should I mention them on this forum.
Hyperinflation may not be inevitable, provided those who control the world's economies can begin to douse the flames without extinguishing the sparks necessary to keep GDP healthy.
But do you trust the politicians and economists to do that?
Just watch the bond markets.
Get yourself out of debt.
Refuse to borrow when the "eye of the storm" appears.
Do not believe it when people begin to say "all is well."
You will know when "all is well" and it will not be any time in my generation.
