Hyperinflation on the way?

[OwlHoot]

There are some pretty scary graphs in the following articles:

2015-10-13 Fed Consumer Spending Survey Plunges To Record Low

2015-10-13 Short Squeeze, Liquidity, Margin Debt & Deflation



and scariest of all:



I'm starting to think the world economy is behaving somewhat analogous to a supernova. And we are in the collapse stage preceding the explosion

(A large star collapses when the supply of fuel for exothermic nuclear reactions falls below a certain level, and then after a second or two the central zone is surrounded by a spherical wall of huge density which prevents neutrinos escaping as they normally would through less dense matter. These neutrinos then quickly build up a "gas" of colossal temperature and density, which soon blows the star apart.)

Or am I being fanciful?

[AtW]

Russian and China selling US bonds, money need to be somewhere to give them "real" dollars in exchange.

[LondonManc]

Russian and China selling US bonds, money need to be somewhere to give them "real" dollars in exchange.

Doesn't matter who's selling what if there isn't a buyer.

[Zero Liability]

The current collapse of the credit boom in China is more likely to be deflationary than inflationary, as they have created massive resource over-capacity in commodities. It's how the central banks respond that'll determine if there's hyperinflation or not, probably hyperstagflation to make it even better.

[yasockie]

For inflation to happen, there needs to be someone willing to buy at inflated prices.
At the moment, the opposite is happening - we have stockpiles of ever cheaper electronics, stockpiles of meat, milk, grain, metal commodities, even oil.
Government can't keep up printing money - this will devalue to currency in real terms but nor cause inflation of consumers don't start spending more.
And they won't because the spending is already on a high level and most people have the necessities covered and lack disposable income to spend the excesses on excessive things.
There wealth is too concentrated, and the super rich can't respend quick enough.

Care to explain where the inflation would be coming from?

[AtW]

Doesn't matter who's selling what if there isn't a buyer.

There is always a buyer if need be - US Govt.

For Govts around the world US Bonds were guaranteed place to keep their money - unlike Lehmans they won't go bust, and it was and still is possible to turn those US Bonds into dollars at any time - at volumes of hundreds of billions, which is what China is doing now to cover capital outflows from country.

[scooterscot]

Russian and China selling US bonds, money need to be somewhere to give them "real" dollars in exchange.

I noticed dat too. So whose ending up with all the US debt?

[AtW]

I noticed dat too. So whose ending up with all the US debt?

The US.

It owes to itself

[BrilloPad]

I have been expecting hyper inflation for years. Due to QE.

I missed that QE has ended up in tax havens.

I must get some economiks lessons from AtW....

[alphadog]

Things could get interesting on the inflation front if govts decide to inject money created out of thin air into infrastructure projects, tax rebates, mortgage subsidies, etc. There has been more and more talk about options such as these, but no movement yet... could be years away. At the minute, deflationary forces are well and truly in charge.