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Like the title says what do you guys think of this? I did some research the last weeks for inflation in general mostly for my country (germany) then I realized that the USA seem to be more thretened by it than us.

Your opinions?

Obama will save us.

America might be "more-at-risk" than Germany, I don't know, but it is probably a moot comparison anyways.

hyperinflation, in terms of what is seen in the third world and failing states is really not applicable to modern western society. essentially every economic check orbalance would need to fail simtaniously, which is unlikely.

like all western nations, the American central bank regulates inflation. in Canada we hold it at about 2 percent

Not gonna happen.

Hyperinflations only happens when a country is in the shitter.... And as much as I hate to admit it... The US isn't anywhere near the shitter.

I really dont think anyone knows how to balance the economic system. I'm not a very smart person, but even i know that throwing money at our economic problems and over taxing the middle the class isn't going to help. However, this seems to be what our Gomment has been doing for years and the only real consequence from all of this seems to only be the fact that my Reese Cups get smaller and more expensive. I suppose, if that's the worst thing that's going to happen, its not that big of an issue. It's definitely annoying, but not THAT concerning.

I think it's a smoke show and the people putting on the show don't know what's going on either.

Originally posted by inimalist
America might be "more-at-risk" than Germany, I don't know, but it is probably a moot comparison anyways.

hyperinflation, in terms of what is seen in the third world and failing states is really not applicable to modern western society. essentially every economic check orbalance would need to fail simtaniously, which is unlikely.

like all western nations, the American central bank regulates inflation. in Canada we hold it at about 2 percent http://gulfnews.com/business/opinion/us-faces-inflation-or-default-1.622397

http://www.geldpress.com/i/img/us-debt-gdp.jpg

http://www.marketoracle.co.uk/Article4735.html

EDIT: Just a bit I found in english, the sites that brought up my thoughts about it were in german.

quite a good cartoony thread this

Originally posted by Parmaniac
http://gulfnews.com/business/opinion/us-faces-inflation-or-default-1.622397

nothing in there about hyper-inflation at all.

Originally posted by Parmaniac
http://www.geldpress.com/i/img/us-debt-gdp.jpg

what is this a measure of? not inflation... America has been ~4% for the past few months iirc

also, i can't be positive, but I dont believe any of those nations are currently experiencing hyper-inflation.


Originally posted by Parmaniac
http://www.marketoracle.co.uk/Article4735.html

EDIT: Just a bit I found in english, the sites that brought up my thoughts about it were in german.

like I said in my first post, it would cause a huge shock to society that itself would be destabalizing, before anything close to hyper-inflation could happen.

So, going by that link, you think the problems America faces today are as bad as after the revolutionary war? or comparable to Germany immediatly after WW1?

I have to say, things arent so good for America, maybe worse than the recessions of the 80s-90s, but this isn't the new depression.

That article goes to pains NOT to point out that any changes America makes to its inflation policy are under the control of the central American bank, and would certainly be in the neighbourhood of 1-2% change at most (most changes are in the 0.1% range, a 2% change in inflation would cause huge chamges in the economy). This was not the case in any of those situations that the author brings up. To ignore all the reasons why each situation is profoundly different from the crisis today.

If America gets to a point where it has hyper-inflation, like what was seen in Eastern Europe or African nations like Zimbabwe, you probably have little to worry about. You've been out of a job for months and can't afford the radically spiriling prices anyways.

have a gander at these:

http://www.cracked.com/article_18397_5-economic-collapses-more-ridiculous-than-this-one.html

not all are relevant, but it will at least show that economics are crazy, and anyone saying that there is a golden ticket solution (as the article does with having a currency based off of a gold standard) is not giving you the whole story.

Inflation is caused by increase in the money supply. Hyperinflation is caused by shorting currency.

are you sure?

wasn't the problem in Germany and Zimbabwe that the bank printed too much currency?

Originally posted by inimalist
are you sure?

wasn't the problem in Germany and Zimbabwe that the bank printed too much currency? They wanted to get rid off the debt due to the war, the pic I've posted is the debt-to-gdp ratio in the USA.

http://www.youtube.com/watch?v=afWqKcqntfs&feature=channel

So the way to get rid off the whole debt is a massive inflation or to "reset" the system.

http://www.youtube.com/watch?v=rXFF7ui2MSI
(Take a look at the upload date)

A reset is now more likely than an inflation.

The prob was/is that they just print more and more money cause the US dollar is the lead currency they don't have the situation like simbapwe. Other countries, for example china, are exporting to the US but the USA doesn't really have money with real value and therefore china bought US treasury secrurities to keep on exporting and let their economy grow. Now China reached a point where they realised that this isn't possible to go on forever and the US wanted china to "level up" their Yuan that they can export into china but that also would hurt chinas exports so china won't follow this. So now the USA are more or less sitting on a gigantic debt and till now there seems to be no way out (except infaltion or reset). That's why I thought about this and asked for opinions based on facts and not just stuff like "not going to happen" etc cause the prob is pretty complex.

http://prgroup10.files.wordpress.com/2009/11/china-us-national-debt-holdings.jpg

EDIT: Here's a graph of their debt
http://www.brillig.com/debt_clock/inflation.gif

their economy can never ever cover this up again

EDIT2: A good vid to this http://www.youtube.com/watch?v=bcc-TqvCXqU&feature=channel

OK I've just watched the whole thing from that guy he pretty much explains everything and summurizes everything I've read before that

so start with that: Crash Course: Chapter 10 - Inflation by Chris Martenson
http://www.youtube.com/watch?v=afWqKcqntfs&feature=channel

and end with: Crash Course: Chapter 17c
http://www.youtube.com/watch?v=6w6gf3tSGTg&feature=channel
at 4:10 he starts to sum everything up.

I know it takes a lot of time but 100% gets the point imo.

Originally posted by Parmaniac
That's why I thought about this and asked for opinions based on facts and not just stuff like "not going to happen" etc cause the prob is pretty complex.


how about this. pretend I'm stupid and explain plainly how current US debt will end in hyperinflation. but like, you explain it to me, I'm not going to bother with YouTube, sorry

Originally posted by inimalist
how about this. pretend I'm stupid and explain plainly how current US debt will end in hyperinflation. but like, you explain it to me, I'm not going to bother with YouTube, sorry Ok I'll try but that could take a while like I said I came up with this thought after reading like hundreds of articles of the development of china and our crisis and that I thought that it's just the tip of the iceblock but I'll try to sum this up.

Originally posted by inimalist
nothing in there about hyper-inflation at all.
There is here:
"Raising taxes

So, there is a massive buildup of public debt. And the lesson of history is that unless this buildup of sovereign debt is tackled eventually by raising taxes and controlling spending, then there are only two outcomes: default or high inflation.

Historically, we have seen a series of defaults and sovereign debt crises in both advanced and emerging market economies. If you are a country like the US, the UK or Japan that can monetise its fiscal deficits, then you won't have a sovereign debt event but high inflation that erodes the value of public debt. Inflation is therefore basically a capital transfer from creditors and savers to borrowers and dissavers, essentially from the private sector to the government.

While the markets these days are worrying about Greece, it is only the tip of the iceberg, or the canary in the coal mine of a much broader range of fiscal crises. Today it is Greece. Tomorrow it will be Spain, Portugal, Ireland and Iceland. Sooner or later Japan and the US will be at the core of the problem, shaking the global economy."

bED84nUDH_I

first 10 min or so have an awesome discussion about American debt and spending. A major point is that international debt to china is insignificant compared to benefit and social security payments that are coming as baby boomers retire. Not an optimistic view, but I think a bit more tempered than "hyperinflation".

Also, the program has a look at the Nigerian economy, and the "next 11" nations behind BRIC to become global powers