Hyperinflation on the way?

[_V_]

Zerohedge, hmmmmmmmm.

[OwlHoot]

Zerohedge, hmmmmmmmm.

That's true up to a point - Some of the comments, and occasionally the articles themselves, are by axe grinding loonies.

But a lot of the articles and comments are made by obviously smart and knowledgeable people (which needn't mean they are correct or impartial, granted).

It's like anything else - 90% is tulip, and the trick is to decide which 10% isn't.

[Zero Liability]

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.

Indeed. So far the money (credit) has flowed into assets, including sovereign debt, which don't show up in the usual metrics that gauge price inflation, such as CPI (it's not even fit to capture housing price inflation). Although I think diminishing Chinese demand for US Treasuries will also see some dollars return "home". If they decide to just credit everyone's bank accounts, to "stimulate" consumption, that could put upward pressure on prices, but it'd have to be significant in order to overwhelm the commodities overhang that has resulted from this credit bubble.

[SpontaneousOrder]

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

I missed that QE has ended up in tax havens.

and in house prices.

[SpontaneousOrder]

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?

Inflation doesn't need anyone to be willing to buy at inflated prices. The price will just go up whether you're willing or not, as soon as the extra cash in circulation means that demand starts to outstrip supply.

The idea that people could possibly not be willing to buy at inflated prices can only be valid if you also suppose that those same people would prefer to save their excess cash rather than spend it. In that case (and it would be a more healthy economy if people did that) there is obviously a point at which spending will cease to be deferred - otherwise the act of saving would be redundant in the first place.

So if people want to save rather than spend, then prices won't rise in the first place (i.e. is's not about whether people are willing to pay higher prices - it's about whether they want to spend now or later). Then when they eventually start to spend, prices will inevitable rise (at least relative to production - again, obviously, slower price decrease is the same as price increases if the cause is money supply expansion).

[OwlHoot]

2015-10-29 BofA Looks At Europe's Record €2.6 Trillion In Negative-Yielding Debt, Is Shocked At What It Finds

Yesterday we reported something that has never happened before in Europe: more than half of European sovereign issuers just saw the yield on their 2 Year Notes trade not only below zero, but hit never before seen negative yields.

:::

This was the be expected, as now every single activist central-bank is exporting deflation with a passion. The result is that negative yields have led to even more... deflation.

:::

So while everyone is gradually realizing that unconventional monetary policy using the bank reserve pathway simply does not work to increase broad inflation (however it does miracles for asset-price, i.e., stock market, inflation) which in a world drowning under $200 trillion in debt is the only goal, and will ultimately be replaced with the hyperinflationary endgame of simple monetary paradrops, also known as central-bank funded fiscal stimulus or "helicopter money", for now the hope is that doing more of the same which is clearly not working will finally work, and lead to the much desired jump in inflation.

Alas, it won't, because as we have stated for years, and where Bank of America finally "gets it", frontrunning central banks purchases of government bonds, which pushes yields to zero and in Europe's case, well below, is in itself the most deflationary signal possible.

:::

But fear not: when even more QE and NIRP do not work, and the economists of the ECB admit the "monetary twilight zone" was a disaster, there is one last "tool" they can and will use - helicopters.

Because when it comes to printing money, whether in digital reserve format, or physical paper format, there is literally no limit how much can and will be created to achieve what is the endgame of the current monetary dead end: the total destruction of fiat as a store of wealth in order to preserve the global equity tranche while wiping away a few hundred trillion in debt. ...

I'm telling ya, guys, it's on its way.

Maybe not this year or even next, but before too long anyone with savings will see them wiped out one way or another.

[OwlHoot]

There's a lot of irony in that.

Hehe! I see what you did there

[MicrosoftBob]

The problem is that sort of site could occasionally have a nugget of truth, but it's so full of tinfoil hat wearing nut jobs that one tends to be biased against it

[OwlHoot]

The problem is that sort of site could occasionally have a nugget of truth, but it's so full of tinfoil hat wearing nut jobs that one tends to be biased against it

WHS, although the articles often give food for thought

[LucidDementia]

I'm telling ya, guys, it's on its way.

Maybe not this year or even next, but before too long anyone with savings will see them wiped out one way or another.

Personally I tend to agree. I prefer physical silver for my savings.