QE3 and hyperinflation

[Large Sarge]

http://moneyteachers.org/QE3.html

[Silver Rocket Bitches!]

We can have hyperinflation in this country but not until the banks start making loans and money velocity picks up. I think a more likely scenario is that the loss of confidence in the dollar will cause countries to abandon it as the reserve currency which will cause all those dollars to repatriate to chase after a shrinking supply of domestic goods/assets. Not sure if this is enough to cause hyperinflation but certainly a big spike in inflation will be noticed.

[madfranks]

We can have hyperinflation in this country but not until the banks start making loans and money velocity picks up. I think a more likely scenario is that the loss of confidence in the dollar will cause countries to abandon it as the reserve currency which will cause all those dollars to repatriate to chase after a shrinking supply of domestic goods/assets. Not sure if this is enough to cause hyperinflation but certainly a big spike in inflation will be noticed.

Don't discount the fact that hyperinflation is as much a psychological phenomenon as a monetary phenomenon. If all the dollars overseas come back, that might be enough to spark the fire.

[Spectrism]

Don't discount the fact that hyperinflation is as much a psychological phenomenon as a monetary phenomenon. If all the dollars overseas come back, that might be enough to spark the fire.

Right now people are EXPECTING QE3 as if this is a normal process in a free market economy. It is pretty clear that there no longer is anything akin to a free market economy left. But the market moves we are seeing in stocks & PMs presume (and need) that injection of easy money.

Don't be surprised when it is not immediately forthcoming. We could see wild swings in prices before any real hyperinflation happens - because of the psychological effect.

When prices drop, it is because there are no buyers with money in hand making the trade. If they drop severely, it could indicate the need to liquidate assets for other costs.

[Hatha Sunahara]

Don't discount the fact that hyperinflation is as much a psychological phenomenon as a monetary phenomenon. If all the dollars overseas come back, that might be enough to spark the fire.

I think it's entirely psychological. Fiat money is an abstraction. It is only worth something if you can buy something with it. If you can get less for it than the value you have to give up to get it, then people need to find a different way to exchange things. Until they do, the banksters will print as much money as necessary to keep the system going because it robs people en mass. The banksters are gaming the system to their advantage. It will last until everybody's pensions are worthless. Notice now how the MSM is airing news about the increasing practice of cutting pensions. Hyperinflation will make it so pensions do not need to be cut. They just won't be raised, and eventually people on fixed pensions will not be able to buy anything with their monthly pension check. Any corporate entity that has an unfunded pension obligation will welcome QE3. Hyperinflation is a hypocrite's way of staying honorable by meeting all obligations that they couldn't afford to take on when they made them.

Hatha

[chad]

if mountain dew and doritos stay cheap, no one i know will care.