Is Hyperinflation On The Horizon?

[Kobe Bryant]

With the government spending $5,000,000,000,000 in one year. And an administration that wants to keep printing dollars...
Is hyperinflation coming? And how would you protect against it?

[Alexsei]

Is there no vaccine for it yet ?

[EliJelly]

And how would you protect against it?

With sending even higher stimulus check amounts

[aygart]

And an administration that wants to keep printing dollars...

Didn't the Rs lose?

[drosenberg88429]

Didn't the Rs lose?

The disconnect between currency and GDP are one of the things that Democrats, Republicans, and crypto advocates all agree on.

[aygart]

The disconnect between currency and GDP are one of the things that Democrats, Republicans, and crypto advocates all agree on.

You are giving to much credit to each of those groups

[TimT]

You are giving to much credit to each of those groups

Oh they all understand it, alright. They’re all just kicking the can down the road.

[ExGingi]

To answer the thread title, it might be far on the horizon, but in the meantime the deflationary forces are just so great that no inflation is in sight.

[drosenberg88429]

To answer the thread title, it might be far on the horizon, but in the meantime the deflationary forces are just so great that no inflation is in sight.

Have the prices of real estate, equities, and various other assets and commodities not risen over the past year? Look at the dollar index. Yes, I understand individual excuses were for each of these occurrences, but in the bigger picture, it does not look like prices are coming down anytime soon. Are we in denial that there's effective inflation? Markets are forward looking, and they're looking at devalued dollars.

[coffeebean]

With the government spending $5,000,000,000,000 in one year. And an administration that wants to keep printing dollars...
Is hyperinflation coming? And how would you protect against it?

BTC

[Kobe Bryant]

Didn't the Rs lose?

https://www.google.com/amp/s/amp.cnn.com/cnn/2021/03/31/politics/infrastructure-joe-biden-jobs-climate-plan/index.html

[aygart]

https://www.google.com/amp/s/amp.cnn.com/cnn/2021/03/31/politics/infrastructure-joe-biden-jobs-climate-plan/index.html

Right? Do you need links to R spending? Or can you find it yourself?

[aygart]

Oh they all understand it, alright. They’re all just kicking the can down the road.

Either they do or don't understand the inflationary consequences, but it is not because they have a whole stickle torah why it won't be detrimental.

[Kobe Bryant]

Right? Do you need links to R spending? Or can you find it yourself?

I linked to Biden announcing today that he would like to spend >$2,000,000,000,000 on some FDR style project. Maybe start a spin off thread in the Politics board to discuss spreading the blame around.

[aygart]

I linked to Biden announcing today that he would like to spend >$2,000,000,000,000 on some FDR style project. Maybe start a spin off thread in the Politics board to discuss spreading the blame around.

"I made this about the Dems. If you disagree then it is politics"

[AsherO]

"I made this about the Dems. If you disagree then it is politics"

Why are you making this about politics? The OP posted a financial question that isn’t necessarily political in a financial thread. Start a new thread in the politics board to discuss whose fault it is.

#notpostingasamod

[PlatinumGuy]

Have the prices of real estate, equities, and various other assets and commodities not risen over the past year? Look at the dollar index. Yes, I understand individual excuses were for each of these occurrences, but in the bigger picture, it does not look like prices are coming down anytime soon. Are we in denial that there's effective inflation? Markets are forward looking, and they're looking at devalued dollars.

Inflation and hyperinflation are very different things. Think about having weight which is necessary vs being overweight...

I linked to Biden announcing today that he would like to spend >$2,000,000,000,000 on some FDR style project.

That's over 10 years

[drosenberg88429]

Inflation and hyperinflation are very different things. Think about having weight which is necessary vs being overweight...

Hyperinflation is generally defined at 50%+ a month. I think that almost all economists would agree that is astronomically unlikely to occur with USD.

That being said, the dollar has been effectively devalued more than 3% over the past year. The standard inflationary effect of more (unearned, if I may add, which intensifies the effect) dollars chasing less goods leading to rising prices across the spectrum has certainly been in effect.

[drosenberg88429]

Is hyperinflation coming? And how would you protect against it?

I personally use potato futures as currency

In generally, potato futures are the fiscally prudent risk mitigation methodology accepted by leading economic experts as the responsible approach to bubble and inflationary concerns.

Chag kasher v'sameach.

[Kobe Bryant]

Hyperinflation is generally defined at 50%+ a month. I think that almost all economists would agree that is astronomically unlikely to occur with USD.

That being said, the dollar has been effectively devalued more than 3% over the past year. The standard inflationary effect of more (unearned, if I may add, which intensifies the effect) dollars chasing less goods leading to rising prices across the spectrum has certainly been in effect.

Almost all hyperinflations have been caused by government budget deficits financed by currency creation.[citation needed] Hyperinflation is often associated with some stress to the government budget, such as wars or their aftermath, sociopolitical upheavals, a collapse in aggregate supply or one in export prices, or other crises that make it difficult for the government to collect tax revenue. A sharp decrease in real tax revenue coupled with a strong need to maintain government spending, together with an inability or unwillingness to borrow, can lead a country into hyperinflation.[3]

Although technically speaking ”Hyperinflation is generally defined at 50%+ a month.” I am referring to something similar to what happened in the US from 1973-1982 where inflation averaged 8.8% a year. Or even worse...