[politicket]

We are not going to have hyperinflation.

Major hyperinflation has only occurred in modern history where countries have enormous amounts of debt denominated in a currency which is not their own.

The U.S. has large debt - but all in US dollars.

We will be following the path of Western Europe and suffer major deflation.

[L,TOWM]

A good assumption, provided that the rest of the world plays along and keeps trading in US dollars. A petroleum distributor in India must convert the ruppees to dollars to buy oil. Australians buying rice from the Phiillipines have to convert the aussie dollar to the US dollar to do it. What happens if or when when the rest of the world decides to start trading in remminbi or rand or euros?

An economist I read not too long ago described hyperinflation as an abondonment of faith in a currency, not the way too much money chasing too few goods & services.

[Mamzelle]

re: Major hyperinflation has only occurred in modern history where countries have enormous amounts of debt denominated in a currency which is not their own.)))

Huh? How do Argentina, Weimar Republic, and Zimbabwe figure in to this?

[CommieCutter]

Educate me on this.

If we suffer major deflation does that mean savings accounts will disappear/go under?

[MrDem]

Thank You! All the talk of hyperinflation is idiotic and spewed by those who are grossly ignorant of the real monetary system that the US operates under.

THE EXPLODING U.S. MONEY SUPPLY MYTH

http://pragcap.com/the-exploding-u-s-money-supply-myth

[familyop]

"Major hyperinflation has only occurred in modern history where countries have enormous amounts of debt denominated in a currency which is not their own."

What nation's treasury sold bonds in currency other than its own?

"The U.S. has large debt - but all in US dollars."

...for now. ;-) There's more in this world than debt ridden real estate with layers of derivatives. Foreign product prices will also rise before long.

Our government has two general choices: to repudiate the debt or radically cheapen it by monetizing.

[investigateworld]

I hope you are correct, or it’s back to doing ‘outcalls’ at lesbian bars for me ;^)