John Williams Forecasts U.S. Dollar Hyperinflation Before End Of 2014

"How do all those disillusioned folks cause more money to be circulating in the economy - ‘cause folks are damn disillusioned now and the velocity of money has been falling like a rock for two or three years = that’s what’s called DEFLATION!"

Monetary inflation is growth in money supply, a stock variable, not velocity. Velocity is a multiplier. Price inflation is a function of monetary supply (a stock variable).

World FOREX holdings started shifting away from the dollar a decade ago (about the time the Fed went full retard mode). The truism in economics is "bad money crowds out good". Which means the velocity multiplier will increase (and so price inflation, which is what is usually being discussed when the term "hyperinflation" is brought up). Anyway the shift in FOREX reserves away from the dollar is a sign that the process is already underway.

But the timing is a little tough to pin down. If a transnational trading currency indexed to something real (like a basket of PM's or commodities) arises that will allow international contracts to settle, people/banks/governments outside the US would start dumping dollars en masse.

Well the Fed has pumped 2-3 trillion into the economy and guess what NO INFLATION.

Ah, that IS inflation. Look it up in the dictionary. Inflation is the increase in the money supply. What prices do after that is go up at different rates in different industries and the new money flows through the economy. Ask your wife about prices at the grocery store.

>>"Hyperinflation will be just in time for the next Republican administration. I’ve been saying it has been coming for 6 years now...as a 2.5 GPA Econ major I am beginning to doubt myself... "
>
(LOL) Your doubts are justified...there won't be another Republican administration.

I do think the Romney nomination signaled the end of the Republican party -- they have proven themselves to be either utterly incompetent or liars to anyone 30 and under (when was the last time the Republicans actually fought for party planks?) AND they have utterly abused their base (nominating liberals, claiming to be conservatives, confident you must vote for them "because the other guy was worse").

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.