Hyperinflation is happening right now, we just can't see it yet

[vacuum]

I had a lightbulb go off in my head today while watching this video:


https://www.youtube.com/watch?v=ZnX2PUlagz8

Basically we are hyperinflating right now, but no one is noticing it.

The hyperinflation has cleverly been hidden by shutting the economy down. The money velocity has dropped because of less economic activity. Because of this, all the money flooding out from the fed while it purchases everything is not being noticed.

It was shocking to come to this realization that its not something that will happen in the future, its happening right now and we aren't noticing it.

[woodman]

Good post Vac. Also called Creative Destruction. Warfare. Since Manarino 'came out' as a Mason, I have not been as avid a listener. I'll check out the vid though. I agree, we are in a hyper inflation mode which is impossible to avoid because the other option is hyper-deflation. Like an oscillating mass which approaches the point where the center can't hold.

Humanity has been hyper-inflated also. Oil has been pulled in ever greater amounts to the point where the controllers of the system have 'called it'. Controlled demolition is the order of the day.

[vacuum]

https://www.youtube.com/watch?v=ttRowYm6Hrg

[ImaCannin]

I always look at the price of OSB when I go to the lumber store.... in less than a month it has jumped 8.00.

7/16 in. x 48 in. x 8ft. Oriented Strand Board 31.65 (https://www.homedepot.com/p/7-16-in-x-48-in-x-8ft-Oriented-Strand-Board-386081/202106230)


Experts Predict Certain Foods Will Become 'Extinct' In Grocery Stores As Supply Chain Issues Affect Almost Every Facet Of Shopping - 'Like A Train Wreck In Slow Motion (https://allnewspipeline.com/Like_A_Train_Wreck_In_Slow_Motion.php)
..... The cost of shipping a container of goods has risen by 80 percent since early November and has nearly tripled over the past year, according to the Freightos Baltic Index. ....

[ImaCannin]

https://thedailycoin.org/2021/02/04/hyperinflation-can-happen-much-faster-than-you-think/

Hyperinflation Can Happen Much Faster Than You Think
BY DAILY RECKONING · PUBLISHED FEBRUARY 4, 2021 · UPDATED FEBRUARY 3, 2021

Hyperinflation Can Happen Much Faster Than You Think BY JAMES RICKARDS for Daily Reckoning

There’s no universally agreed-upon definition of hyperinflation. But one widely used benchmark says hyperinflation exists when prices increase 50% or more in a single month. So if gasoline is $3.00 per gallon in January, $4.50 per gallon in February and $6.75 per gallon in March and the prices of food and other essentials are going up at the same pace, that would be considered hyperinflationary.

It also tends to accelerate once it begins, meaning the monthly 50% increase soon becomes 100%, then 1,000%, etc., until the real value of the currency is utterly destroyed. Beyond that point, the currency ceases to function as a currency and becomes litter, good only for wallpaper or starting fires.

Many investors assume that the root cause of hyperinflation is governments printing money to cover deficits. Money printing does contribute to hyperinflation, but it is not a complete explanation.

As I mentioned above, the other essential ingredient is velocity, or the turnover of money. If central banks print money and that money is left in banks and not used by consumers, then actual inflation can be low.


This is the situation in the U.S. today. The Federal Reserve has expanded the base money supply by over $6 trillion since 2008, with over $3 trillion of that coming since last February alone.

But very little actual inflation has resulted, or at least very little official inflation. This is because the velocity of money has been decreasing. Banks have not been lending much, and consumers haven’t been spending much of the new money. It’s just sitting in the banks.

Money printing first turns into inflation, and then hyperinflation, when consumers and businesses lose confidence in price stability and see more inflation on the horizon. At that point, money is dumped in exchange for current consumption or hard assets, thus increasing velocity.

As inflation velocity spikes up, expectations of more inflation grow, and the process accelerates and feeds on itself. In extreme cases, consumers will spend their entire paycheck on groceries, gasoline and gold the minute they receive it.

They know holding their money in the bank will result in their hard-earned pay being wiped out. The important point is that hyperinflation is not just a monetary phenomenon — it’s first and foremost a psychological or behavioral phenomenon.

Hyperinflation doesn’t affect everyone in a society equally. There are distinct sets of winners and losers. The winners are those with gold, foreign currency, land and other hard assets. The losers are those with fixed income claims such as savings, pensions, insurance policies and annuities.

Debtors win in hyperinflation because they pay off debt with debased currency. Creditors lose because their claims are devalued.

Hyperinflation doesn’t emerge instantaneously. It begins slowly with normal inflation and then accelerates violently at an increasing rate until it becomes hyperinflation. This is critical for investors to understand because much of the damage to your wealth actually occurs at the inflationary stage, not the hyperinflationary stage. The hyperinflation of Weimar Germany is a good example of this.

In January 1919, the exchange rate of German reichsmarks to U.S. dollars was 8.2 to 1. By January 1922, three years later, the exchange rate was 207.82 to 1. The reichsmark had lost 96% of its value in three years. By the standard definition, this is not hyperinflation because it took place over 36 months and was never 50% in any single month.

By the end of 1922, hyperinflation had struck Germany, with the reichsmark going from 3,180 to one dollar in October to 7,183 to one dollar in November. In that case, the reichsmark did lose half its value in a single month, thus meeting the definition of hyperinflation.

One year later, in November 1923, the exchange rate was 4.2 trillion reichsmarks to one dollar. History tends to focus on 1923 when the currency was debased 58 billion percent. But that extreme hyperinflation of 1923 was just a matter of destroying the remaining 4% of people’s wealth at an accelerating rate. The real damage was done from 1919–1922, beforehyperinflation, when the first 96% was lost.

If you think this can’t happen here or now, think again. As I also mentioned above, something like this started in the late 1970s. The U.S. dollar suffered 50% inflation in the five years from 1977–1981. We were taking off toward hyperinflation, relatively close to where Germany was in 1920.

Most wealth in savings and fixed income claims had been lost already. Hyperinflation in America was prevented by the combined actions of Paul Volcker and Ronald Reagan, but it was a close call.

Today the Federal Reserve assumes if inflation moves up to 3% or more in the U.S., they can gently dial it back to their preferred 2% target. But moving inflation to 3% requires a huge change in the behavior and expectations of everyday Americans. That change is not easy to cause, and once it happens, it is even harder to reverse.

If inflation does hit 3%, it is more likely to go to 6% or higher, rather than back down to 2%. The process will feed on itself and be difficult to stop. Sadly, there are no Volckers or Reagans on the horizon today. There are only weak political leaders and misguided central bankers.

[kiffertom]

i still think we are in deflation and they cant inflate as fast as they want! i see things are going up in prices but not in wages.i think there is so much debt out there they cant create fast enough to cover the loses. most of the money that they create is going to the banks and into the stock market. what about gold and silver. we know its rigged but shouldnt the banks be covering their asses by letting it rise? we are definitely living in interesting times!

[kiffertom]

I always look at the price of OSB when I go to the lumber store.... in less than a month it has jumped 8.00.

7/16 in. x 48 in. x 8ft. Oriented Strand Board 31.65 (https://www.homedepot.com/p/7-16-in-x-48-in-x-8ft-Oriented-Strand-Board-386081/202106230)


Experts Predict Certain Foods Will Become 'Extinct' In Grocery Stores As Supply Chain Issues Affect Almost Every Facet Of Shopping - 'Like A Train Wreck In Slow Motion (https://allnewspipeline.com/Like_A_Train_Wreck_In_Slow_Motion.php)
..... The cost of shipping a container of goods has risen by 80 percent since early November and has nearly tripled over the past year, according to the Freightos Baltic Index. ....

damn 31 dollars for OSB? that hurts!

[vacuum]

http://www.youtube.com/watch?v=ekVoyQbUVZA

[Ares]

I think we are seeing the inflation in the Crypto markets. Crypto is much more difficult to naked short if not impossible as you always know how many are in circulation.

[vacuum]

I think we are seeing the inflation in the Crypto markets. Crypto is much more difficult to naked short if not impossible as you always know how many are in circulation.
I totally agree.

But I’m now starting to see the big picture... all this inflation is causing everyone to exit cash. People are either going into stocks or cryptos.

But it’s a trap. There will be problems in the debt market which will cause a stock market crash, just like 2008 and other stock market crashes before it. The crash in cryptos will be even more brutal than the stock market.

The problem with the Bitcoin charts and cycles theory is that Bitcoin has solely existed during the longest bull run in history. Look at the s&p 500 from 2008 until now (Bitcoin’s entire existence). It’s done nothing but go up. All Bitcoin bullishness assumes this backdrop. The one time we had market issues in March, it dropped by 50%. And the March thing was just a market correction, not an actual economic event.

I think we’re all about to get slaughtered in the stock market and in cryptos. Hyperinflation won’t ever happen until a debt meltdown first.

[Ares]

I totally agree.

But I’m now starting to see the big picture... all this inflation is causing everyone to exit cash. People are either going into stocks or cryptos.

But it’s a trap. There will be problems in the debt market which will cause a stock market crash, just like 2008 and other stock market crashes before it. The crash in cryptos will be even more brutal than the stock market.

The problem with the Bitcoin charts and cycles theory is that Bitcoin has solely existed during the longest bull run in history. Look at the s&p 500 from 2008 until now (Bitcoin’s entire existence). It’s done nothing but go up. All Bitcoin bullishness assumes this backdrop. The one time we had market issues in March, it dropped by 50%. And the March thing was just a market correction, not an actual economic event.

I think we’re all about to get slaughtered in the stock market and in cryptos. Hyperinflation won’t ever happen until a debt meltdown first.

Not going into stocks here. I've been divesting in Metals and Cryptos.

[vacuum]

Not going into stocks here. I've been divesting in Metals and Cryptos.
You’ve been divesting into metals and crypto or out of metals and crypto?

[JDRock]

Inflation=the ruse to blame currency devaluation on imagined increases of goods and services.
Currency devaluation=the root of seeming price increases.
If the dollar was based on 1oz of silver, you could fill your gas tank for 2$.

[Ares]

You’ve been divesting into metals and crypto or out of metals and crypto?

Sorry, Divesting INTO Metals and Crypto.

[ImaCannin]

I totally agree.

But I’m now starting to see the big picture... all this inflation is causing everyone to exit cash. People are either going into stocks or cryptos.

But it’s a trap. There will be problems in the debt market which will cause a stock market crash, just like 2008 and other stock market crashes before it. The crash in cryptos will be even more brutal than the stock market.

The problem with the Bitcoin charts and cycles theory is that Bitcoin has solely existed during the longest bull run in history. Look at the s&p 500 from 2008 until now (Bitcoin’s entire existence). It’s done nothing but go up.

I think we’re all about to get slaughtered in the stock market and in cryptos

BINGO! It seems like they are sucking everyone into the market or crypto’s . Those who still have funds invest all they have In crypto’s or the market. Then in the not to distant future they pull the rug out from under and the crypto’s tank along with the market. How many will get ruined? 1/2 the country Unemployed and the others Loose it all in the market.

[vacuum]

Sorry, Divesting INTO Metals and Crypto.

Yes I have been doing this as well. But as I mentioned, I realize how precarious that is. We’ve never seen cryptos during a market crash, just blip in March. I think it’s going to be brutal if there is an actual stock market crash.

The actual hyperinflation will happen only after that, but there will be a window.

[vacuum]

BINGO! It seems like they are sucking everyone into the market or crypto’s . Those who still have funds invest all they have In crypto’s or the market. Then in the not to distant future they pull the rug out from under and the crypto’s tank along with the market. How many will get ruined? 1/2 the country Unemployed and the others Loose it all in the market.
Good point. Half of people are unemployed while the other half are getting more funny money than the need and are speculating with it because otherwise inflation will kill them.

I think speculating it’sa great money maker right now. I’m doing it too. But I realize that we have to be ready to exit everything AT A MOMENTS NOTICE.

[EE_]

Good point. Half of people are unemployed while the other half are getting more funny money than the need and are speculating with it because otherwise inflation will kill them.

I think speculating it’sa great money maker right now. I’m doing it too. But I realize that we have to be ready to exit everything AT A MOMENTS NOTICE.

When all the little people are getting in the market, it's usually a sign we are near the top. A phrase comes to mind...'throwing caution to the wind'

[vacuum]

https://www.youtube.com/watch?v=lhCHrL4PP4o

[keehah]

Schiffgold.com: Clueless Investors and Economists Shocked By Ballooning CPI (https://schiffgold.com/peters-podcast/peter-schiff-clueless-investors-and-economists-shocked-by-surging-cpi/)

May 13, 2021
The consumer price index (CPI) came in much hotter than expected. The consensus was for a 0.2% month-to-month increase in price inflation. The actual number was 0.8%. It was the biggest monthly gain in CPI since 1981...

Federal Reserve Vice Chairman Richard Clarida said, “We were surprised by higher than expected inflation data.”

Peter said the low expectation didn’t make sense given the price increases we’re seeing in the economy and the trajectory of the CPI over the previous three months. The monthly rises in CPI through the first quarter showed an unmistakable upward trend. The CPI in January was up 0.3%, it was up 0.4% in February and it rose 0.6% in March.

If you combine the CPI numbers through the first four months of the year, we’re already above a 2% increase with eight months to go.

Meanwhile, Federal $$$ corporate journalists gotta keep keeping people confused and uninformed....

CBC: Jump in U.S. inflation may signal that history is repeating itself (https://www.cbc.ca/news/business/inflation-history-column-don-pittis-1.6022412)

May 13, 2021
Economist who witnessed inflation come out of nowhere in 1960s sees similarities

It suddenly seems that worrying about inflation has gone mainstream. What was so recently a quirky idea has shifted into a media mass movement as markets sag and news reports are filled with talk of rising prices.

...U.S. Federal Reserve official Lael Brainard repeated the central bankers' assertion that inflation is just surging temporarily as the economy goes from full stop to full throttle...

Earning his PhD with Nobel Prize-winning economist Milton Friedman at the University of Chicago, [David] Laidler had a ringside seat watching price rises eat away at the value of money over the next 20 years as inflation rose to the high teens.

"Anyone who says they really know what is going to happen over the next couple of years without a doubt is not to be trusted."