+ Reply to Thread
Results 1 to 20 of 20

Thread: Hyperinflation has arrived

  1. Link to Post #1
    Avalon Member
    Join Date
    6th February 2021
    Age
    26
    Posts
    11
    Thanks
    2
    Thanked 147 times in 10 posts

    Smile Hyperinflation has arrived

    http://theeconomiccollapseblog.com/s...s-dollar-dies/

    "It took from the founding of the United States to 2020 for M1 to get to 4 trillion dollars.

    And then it took about one year for M1 to go from 4 trillion dollars to 18 trillion dollars."




    (Link to graph in case my image above doesn't show up: http://theeconomiccollapseblog.com/w...24-560x235.png)

    So, how long until SHTF? Place your bets below.

  2. The Following 22 Users Say Thank You to waxamillionpehhgasus For This Post:

    Alan (14th March 2021), Bill Ryan (14th March 2021), Brigantia (14th March 2021), Constance (15th March 2021), Deborah (ahamkara) (17th March 2021), Elainie (17th March 2021), gord (14th March 2021), Harmony (15th March 2021), Ioneo (14th March 2021), Karen (Geophyz) (16th March 2021), Mecklenburger (14th March 2021), Miha (15th March 2021), mountain_jim (15th March 2021), Nasu (14th March 2021), O Donna (6th April 2021), onevoice (14th March 2021), palehorse (14th March 2021), Sadieblue (15th March 2021), TomKat (14th March 2021), toppy (14th March 2021), Vangelo (14th March 2021), Violet3 (15th March 2021)

  3. Link to Post #2
    Canada Avalon Member TomKat's Avatar
    Join Date
    23rd September 2017
    Posts
    2,011
    Thanks
    1,752
    Thanked 9,018 times in 1,786 posts

    Default Re: Hyperinflation has arrived

    Well, as Jim Rickards points out, money supply doesn't create inflation, money velocity does. So it's more wait and see.

  4. The Following 9 Users Say Thank You to TomKat For This Post:

    Deborah (ahamkara) (17th March 2021), Harmony (15th March 2021), Ioneo (14th March 2021), Karen (Geophyz) (16th March 2021), Miha (15th March 2021), Nasu (14th March 2021), O Donna (6th April 2021), palehorse (30th March 2021), Violet3 (15th March 2021)

  5. Link to Post #3
    Netherlands Avalon Member
    Join Date
    19th April 2013
    Posts
    206
    Thanks
    514
    Thanked 975 times in 189 posts

    Default Re: Hyperinflation has arrived

    Quote Posted by TomKat (here)
    Well, as Jim Rickards points out, money supply doesn't create inflation, money velocity does. So it's more wait and see.
    Well I believe this stimulus bill in the USA has just been passed which gives normal people 1400 dollar. Really big chance the most are going to spend that money....

  6. The Following 4 Users Say Thank You to Mypos For This Post:

    Deborah (ahamkara) (17th March 2021), Harmony (15th March 2021), Miha (15th March 2021), O Donna (6th April 2021)

  7. Link to Post #4
    Canada Avalon Member TomKat's Avatar
    Join Date
    23rd September 2017
    Posts
    2,011
    Thanks
    1,752
    Thanked 9,018 times in 1,786 posts

    Default Re: Hyperinflation has arrived

    Quote Posted by Mypos (here)
    Quote Posted by TomKat (here)
    Well, as Jim Rickards points out, money supply doesn't create inflation, money velocity does. So it's more wait and see.
    Well I believe this stimulus bill in the USA has just been passed which gives normal people 1400 dollar. Really big chance the most are going to spend that money....
    Yes, but it's not enough to reverse the deflation caused by high unemployment. The real inflation story is gasoline, which is soaring, and will suppress demand for everything else in the economy. Energy inflation, retail deflation.

    I heard on the radio that the average family will accumulate $83,000 in debt for that $2800 they are receiving (in terms of their percent of the increased national debt).

  8. The Following 5 Users Say Thank You to TomKat For This Post:

    Deborah (ahamkara) (17th March 2021), Karen (Geophyz) (16th March 2021), Miha (15th March 2021), O Donna (6th April 2021), onevoice (16th March 2021)

  9. Link to Post #5
    Philippines Avalon Member
    Join Date
    29th May 2013
    Age
    55
    Posts
    2,657
    Thanks
    4,185
    Thanked 10,341 times in 2,318 posts

    Default Re: Hyperinflation has arrived

    Quote Posted by TomKat (here)
    Well, as Jim Rickards points out, money supply doesn't create inflation, money velocity does. So it's more wait and see.
    Holy crap I thought velocity applies only to moving objects.
    Announcement: the money makers is willing to pay a huge some to anybody who can make an acceptable spin to hide the reality of money and inflation.

    I knew hyperinflation is coming ( I have posted this prediction on my FB 2 months ago) simply because I know that to carry out a drama such as covid pandemic will require huge amount of bribe money. Therefore the covid inventors money press is extremely busy printing money to be dump all over the world. More money less goods is equal inflation. No matter how hard you spin it.
    Last edited by Bubu; 16th March 2021 at 08:40.

  10. The Following 5 Users Say Thank You to Bubu For This Post:

    Deborah (ahamkara) (17th March 2021), gord (17th March 2021), Karen (Geophyz) (16th March 2021), O Donna (6th April 2021), Sue (Ayt) (30th March 2021)

  11. Link to Post #6
    Canada Avalon Member TomKat's Avatar
    Join Date
    23rd September 2017
    Posts
    2,011
    Thanks
    1,752
    Thanked 9,018 times in 1,786 posts

    Default Re: Hyperinflation has arrived

    Quote Posted by Bubu (here)
    More money less goods is equal inflation. No matter how hard you spin it.
    Not if the "more money" doesn't circulate. That has been the story for the last 12 years. Central bank prints money which goes to the branch banks which just sits there and doesn't get used. No hyperinflation.

  12. The Following 3 Users Say Thank You to TomKat For This Post:

    gord (17th March 2021), Karen (Geophyz) (16th March 2021), O Donna (6th April 2021)

  13. Link to Post #7
    Philippines Avalon Member
    Join Date
    29th May 2013
    Age
    55
    Posts
    2,657
    Thanks
    4,185
    Thanked 10,341 times in 2,318 posts

    Default Re: Hyperinflation has arrived

    Quote Posted by TomKat (here)
    Quote Posted by Bubu (here)
    More money less goods is equal inflation. No matter how hard you spin it.
    Not if the "more money" doesn't circulate. That has been the story for the last 12 years. Central bank prints money which goes to the branch banks which just sits there and doesn't get used. No hyperinflation.
    Do you mean if the money does not circulate its going to have a deflation effect and that if its circulating faster it will create inflation?

  14. The Following 3 Users Say Thank You to Bubu For This Post:

    Deborah (ahamkara) (17th March 2021), gord (17th March 2021), O Donna (6th April 2021)

  15. Link to Post #8
    Netherlands Avalon Member
    Join Date
    19th April 2013
    Posts
    206
    Thanks
    514
    Thanked 975 times in 189 posts

    Default Re: Hyperinflation has arrived

    Quote Posted by TomKat (here)
    Quote Posted by Bubu (here)
    More money less goods is equal inflation. No matter how hard you spin it.
    Not if the "more money" doesn't circulate. That has been the story for the last 12 years. Central bank prints money which goes to the branch banks which just sits there and doesn't get used. No hyperinflation.
    But thats not true. Look at how the stock markets and the house prices have risen the last 10 years. So the money does get moved around but it hardly drops in the layers of the regular people.

  16. The Following 2 Users Say Thank You to Mypos For This Post:

    gord (17th March 2021), O Donna (6th April 2021)

  17. Link to Post #9
    Canada Avalon Member TomKat's Avatar
    Join Date
    23rd September 2017
    Posts
    2,011
    Thanks
    1,752
    Thanked 9,018 times in 1,786 posts

    Default Re: Hyperinflation has arrived

    Quote Posted by Mypos (here)
    Quote Posted by TomKat (here)
    Quote Posted by Bubu (here)
    More money less goods is equal inflation. No matter how hard you spin it.
    Not if the "more money" doesn't circulate. That has been the story for the last 12 years. Central bank prints money which goes to the branch banks which just sits there and doesn't get used. No hyperinflation.
    But thats not true. Look at how the stock markets and the house prices have risen the last 10 years. So the money does get moved around but it hardly drops in the layers of the regular people.
    That's why they removed housing from the cost of living index back in the early 1980s. They're pretty careful to keep anything other than bare necessities out of the index (housing not a necessity?). If they put housing and stocks into the index, they would have a high official inflation number, which would fuel more inflation. Soon people would start expecting cost of living adjustments to their wages again. The only thing left at that point to create hyperinflation would be an official indexing of prices to inflation (prices automatically adjust upward to keep up with inflation).

  18. The Following 3 Users Say Thank You to TomKat For This Post:

    Deborah (ahamkara) (17th March 2021), gord (17th March 2021), O Donna (6th April 2021)

  19. Link to Post #10
    Philippines Avalon Member
    Join Date
    29th May 2013
    Age
    55
    Posts
    2,657
    Thanks
    4,185
    Thanked 10,341 times in 2,318 posts

    Default Re: Hyperinflation has arrived

    Quote Posted by Bubu (here)
    Quote Posted by TomKat (here)
    Quote Posted by Bubu (here)
    More money less goods is equal inflation. No matter how hard you spin it.
    Not if the "more money" doesn't circulate. That has been the story for the last 12 years. Central bank prints money which goes to the branch banks which just sits there and doesn't get used. No hyperinflation.
    Do you mean if the money does not circulate its going to have a deflation effect and that if its circulating faster it will create inflation?
    Well yes its pretty logical that if supply money to the banks and they did not circulate it, then you are not supplying money to the market. But what makes you think I am talking about supply of money to the banks when we are talking about inflation. And inflation is always in the market and never in the banks, because its the relation of goods to money? Spin?
    Already prices of farm lots and meat and other commodities here has doubled since the opening of lock down. Despite the fact that restrictions and closures cause a huge decline in transactions or money velocity/circulation. So yes this hyperinflation is cause by supply (printing) of money and not velocity of money as you would had us believe.

  20. The Following 2 Users Say Thank You to Bubu For This Post:

    gord (17th March 2021), Mypos (17th March 2021)

  21. Link to Post #11
    Netherlands Avalon Member
    Join Date
    19th April 2013
    Posts
    206
    Thanks
    514
    Thanked 975 times in 189 posts

    Default Re: Hyperinflation has arrived

    Quote Posted by TomKat (here)
    Quote Posted by Mypos (here)
    Quote Posted by TomKat (here)
    Quote Posted by Bubu (here)
    More money less goods is equal inflation. No matter how hard you spin it.
    Not if the "more money" doesn't circulate. That has been the story for the last 12 years. Central bank prints money which goes to the branch banks which just sits there and doesn't get used. No hyperinflation.
    But thats not true. Look at how the stock markets and the house prices have risen the last 10 years. So the money does get moved around but it hardly drops in the layers of the regular people.
    That's why they removed housing from the cost of living index back in the early 1980s. They're pretty careful to keep anything other than bare necessities out of the index (housing not a necessity?). If they put housing and stocks into the index, they would have a high official inflation number, which would fuel more inflation. Soon people would start expecting cost of living adjustments to their wages again. The only thing left at that point to create hyperinflation would be an official indexing of prices to inflation (prices automatically adjust upward to keep up with inflation).
    So you are looking at the living index to determine how much inflation we are having? I look at for instance prices of food. If you look at these kind of things you allready see massive inflation especially for food prices.

  22. The Following 3 Users Say Thank You to Mypos For This Post:

    gord (17th March 2021), onevoice (21st March 2021), palehorse (30th March 2021)

  23. Link to Post #12
    Philippines Avalon Member
    Join Date
    29th May 2013
    Age
    55
    Posts
    2,657
    Thanks
    4,185
    Thanked 10,341 times in 2,318 posts

    Default Re: Hyperinflation has arrived

    Quote Posted by Mypos (here)
    Quote Posted by TomKat (here)
    Quote Posted by Mypos (here)
    Quote Posted by TomKat (here)
    Quote Posted by Bubu (here)
    More money less goods is equal inflation. No matter how hard you spin it.
    Not if the "more money" doesn't circulate. That has been the story for the last 12 years. Central bank prints money which goes to the branch banks which just sits there and doesn't get used. No hyperinflation.
    But thats not true. Look at how the stock markets and the house prices have risen the last 10 years. So the money does get moved around but it hardly drops in the layers of the regular people.
    That's why they removed housing from the cost of living index back in the early 1980s. They're pretty careful to keep anything other than bare necessities out of the index (housing not a necessity?). If they put housing and stocks into the index, they would have a high official inflation number, which would fuel more inflation. Soon people would start expecting cost of living adjustments to their wages again. The only thing left at that point to create hyperinflation would be an official indexing of prices to inflation (prices automatically adjust upward to keep up with inflation).
    So you are looking at the living index to determine how much inflation we are having? I look at for instance prices of food. If you look at these kind of things you allready see massive inflation especially for food prices.
    well yes, is there any other place to look?

  24. The Following User Says Thank You to Bubu For This Post:

    gord (17th March 2021)

  25. Link to Post #13
    Netherlands Avalon Member
    Join Date
    19th April 2013
    Posts
    206
    Thanks
    514
    Thanked 975 times in 189 posts

    Default Re: Hyperinflation has arrived

    Quote Posted by Bubu (here)
    Quote Posted by Mypos (here)
    Quote Posted by TomKat (here)
    Quote Posted by Mypos (here)
    Quote Posted by TomKat (here)
    Quote Posted by Bubu (here)
    More money less goods is equal inflation. No matter how hard you spin it.
    Not if the "more money" doesn't circulate. That has been the story for the last 12 years. Central bank prints money which goes to the branch banks which just sits there and doesn't get used. No hyperinflation.
    But thats not true. Look at how the stock markets and the house prices have risen the last 10 years. So the money does get moved around but it hardly drops in the layers of the regular people.
    That's why they removed housing from the cost of living index back in the early 1980s. They're pretty careful to keep anything other than bare necessities out of the index (housing not a necessity?). If they put housing and stocks into the index, they would have a high official inflation number, which would fuel more inflation. Soon people would start expecting cost of living adjustments to their wages again. The only thing left at that point to create hyperinflation would be an official indexing of prices to inflation (prices automatically adjust upward to keep up with inflation).
    So you are looking at the living index to determine how much inflation we are having? I look at for instance prices of food. If you look at these kind of things you allready see massive inflation especially for food prices.
    well yes, is there any other place to look?
    Yeah like i said in every day life. Inflation numbers are often manipulated.

  26. The Following User Says Thank You to Mypos For This Post:

    gord (17th March 2021)

  27. Link to Post #14
    Canada Avalon Member TomKat's Avatar
    Join Date
    23rd September 2017
    Posts
    2,011
    Thanks
    1,752
    Thanked 9,018 times in 1,786 posts

    Default Re: Hyperinflation has arrived

    Quote Posted by Mypos (here)
    Quote Posted by TomKat (here)
    Quote Posted by Mypos (here)
    Quote Posted by TomKat (here)
    Quote Posted by Bubu (here)
    More money less goods is equal inflation. No matter how hard you spin it.
    Not if the "more money" doesn't circulate. That has been the story for the last 12 years. Central bank prints money which goes to the branch banks which just sits there and doesn't get used. No hyperinflation.
    But thats not true. Look at how the stock markets and the house prices have risen the last 10 years. So the money does get moved around but it hardly drops in the layers of the regular people.
    That's why they removed housing from the cost of living index back in the early 1980s. They're pretty careful to keep anything other than bare necessities out of the index (housing not a necessity?). If they put housing and stocks into the index, they would have a high official inflation number, which would fuel more inflation. Soon people would start expecting cost of living adjustments to their wages again. The only thing left at that point to create hyperinflation would be an official indexing of prices to inflation (prices automatically adjust upward to keep up with inflation).
    So you are looking at the living index to determine how much inflation we are having? I look at for instance prices of food. If you look at these kind of things you allready see massive inflation especially for food prices.
    Yes, there's plenty of inflation for the average person. No hyperinflation yet, though. A better name for hyperinflation is currency collapse. We don't have that yet.

    As to plain old inflation, there are deflationary trends that offset the inflationary ones, the biggest being the low cost of goods from China. China manipulates its currency to keep it low vs. the USD. If that ever changes, we could have very high inflation since most everything is made there. But the resulting high cost of those goods would squeeze demand, putting deflationary pressure on the economy.

    The US central bank has tried for 12 years to create 2% inflation through money printing ("quantitative easing"), which they deem as the ideal amount of inflation. They have failed. Meanwhile, asset prices have skyrocketed.

    Now you can make your own inflation index by tracking the price of everything you typically buy, such as food, fuel, movie tickets, books, computers, whatever. You'll probably find out that there's plenty of inflation, and the minimum wage has not kept up over the years.

  28. The Following 2 Users Say Thank You to TomKat For This Post:

    gord (17th March 2021), Mypos (17th March 2021)

  29. Link to Post #15
    Canada Avalon Member TomKat's Avatar
    Join Date
    23rd September 2017
    Posts
    2,011
    Thanks
    1,752
    Thanked 9,018 times in 1,786 posts

    Default Re: Hyperinflation has arrived

    Here's what hyperinflation looks like. Venezuela can't print money fast enough anymore. They're encouraging all digital for that reason. But the buses can't take digital, so people line up at the bank to get 20 cents worth of cash to take the bus.

    https://www.aljazeera.com/economy/20...-amid-shortage

  30. Link to Post #16
    Canada Avalon Member TomKat's Avatar
    Join Date
    23rd September 2017
    Posts
    2,011
    Thanks
    1,752
    Thanked 9,018 times in 1,786 posts

    Default Re: Hyperinflation has arrived

    I thought I'd do the calculation for minimum wage in the US since 1970 vs. the price of gold for that period. Here's what I got:

    gold price 1970 = 37.50
    min wage 1970 = 1.60/hr

    gold price in 2021 = 1712.00

    multiplier is 45.65

    37.50 times 45.65 = 1712

    2021 min wage should be $73/hr

  31. The Following 3 Users Say Thank You to TomKat For This Post:

    gord (29th March 2021), palehorse (30th March 2021), Sue (Ayt) (30th March 2021)

  32. Link to Post #17
    Netherlands Avalon Member
    Join Date
    19th April 2013
    Posts
    206
    Thanks
    514
    Thanked 975 times in 189 posts

    Default Re: Hyperinflation has arrived

    Quote Posted by TomKat (here)
    I thought I'd do the calculation for minimum wage in the US since 1970 vs. the price of gold for that period. Here's what I got:

    gold price 1970 = 37.50
    min wage 1970 = 1.60/hr

    gold price in 2021 = 1712.00

    multiplier is 45.65

    37.50 times 45.65 = 1712

    2021 min wage should be $73/hr
    If thats not inflation then what is.

  33. The Following 2 Users Say Thank You to Mypos For This Post:

    gord (29th March 2021), TomKat (29th March 2021)

  34. Link to Post #18
    Canada Avalon Member TomKat's Avatar
    Join Date
    23rd September 2017
    Posts
    2,011
    Thanks
    1,752
    Thanked 9,018 times in 1,786 posts

    Default Re: Hyperinflation has arrived

    Quote Posted by Mypos (here)
    Quote Posted by TomKat (here)
    I thought I'd do the calculation for minimum wage in the US since 1970 vs. the price of gold for that period. Here's what I got:

    gold price 1970 = 37.50
    min wage 1970 = 1.60/hr

    gold price in 2021 = 1712.00

    multiplier is 45.65

    37.50 times 45.65 = 1712

    2021 min wage should be $73/hr
    If thats not inflation then what is.
    Well, that's just the shock headline. The actual story is more mundane:

    In 1970 the US was on the gold standard and a dollar was artificially set at 1/32 of an oz of gold. In 1973 Nixon went off, and the entire economy was no longer valued in gold, but petro dollars. In the late 70s, the billionaire Hunt heirs sought to corner the silver market which drove gold up to $600 an ounce. In response, the govt raised the margin requirements bankrupting the Hunts and gold slid to $300 by 1982, but by 1984 stabilized around $400/oz. So if you start with 1984 with a minimum wage of $3.35 and gold at $400, you get a multiplier of only 4.28. Which gives you a 2021 minimum wage of $14.30/hr.

  35. The Following 2 Users Say Thank You to TomKat For This Post:

    Karen (Geophyz) (30th March 2021), palehorse (30th March 2021)

  36. Link to Post #19
    Canada Avalon Member TomKat's Avatar
    Join Date
    23rd September 2017
    Posts
    2,011
    Thanks
    1,752
    Thanked 9,018 times in 1,786 posts

    Default Re: Hyperinflation has arrived

    Here's the best Jim Rickards interview I've heard regarding deflation, inflation, currencies and gold:


  37. The Following User Says Thank You to TomKat For This Post:

    Vangelo (6th April 2021)

  38. Link to Post #20
    Canada Avalon Member TomKat's Avatar
    Join Date
    23rd September 2017
    Posts
    2,011
    Thanks
    1,752
    Thanked 9,018 times in 1,786 posts

    Default Re: Hyperinflation has arrived

    Over the last year,

    price of lumber up 115%
    soybeans up 59%
    corn up 45%
    cotton up 30%
    coffee up 25%
    wheat up 16%
    US home prices up 10%

    US consumer price index up, wait for it ... 1.4%!

    That's called government math

    https://youtu.be/abzCFIsOcKo?t=758

  39. The Following 2 Users Say Thank You to TomKat For This Post:

    Icare (6th April 2021), Vangelo (6th April 2021)

+ Reply to Thread

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts