hyperinflation is always preceded by a rise in asset prices!

[Large Sarge]

http://www.zerohedge.com/news/2013-03-27/guest-post-sane-person-ought-consider-these-important-lessons

[Carl]

Anyone expecting hyperinflation in a credit/debt system hasn't been paying attention....

[jimswift]

So can the debasement strategy ever get out of hand?

They have clearly broken all the rules(laws?) with whats been done to this point.

If being in complete absolute control you can make thing appear and disappear with key strokes, can they bottle this genie anytime they want?

[Carl]

Over expansion of credit always corrects to the debt side.

Perhaps it would help if you remember that all credit is someone else's debt, it cannot exist otherwise.

[madfranks]

Anyone expecting hyperinflation in a credit/debt system hasn't been paying attention....

You are right, but what if congress nationalizes the fed once bernank and company refuse to QE any more?

[Carl]

If congress nationalizes the Fed, credit will already be dead so having the new members of congress printing and spending into that environment won't be too much of a problem.

[madfranks]

If congress nationalizes the Fed, credit will already be dead so having the new members of congress printing and spending into that environment won't be too much of a problem.

I'm thinking along these lines. Who does the Fed ultimately represent, the government or the banks? Because when inflation starts rearing its ugly head, push will come to shove, and the Fed will either have to stop QE to protect the banks from high inflation (and let interest rates rise), or continue QE forever to fund the government. If the Fed stops QE, the government has just lost its lender of last resort, and then what will they do? Will they cut spending and default, or will they nationalize the Fed and print, print, print until the inflation becomes hyperinflation?

[kiffertom]

also to have hperinflation you must have an increase in wages. that aint happenin'!

[Carl]

I'm thinking along these lines. Who does the Fed ultimately represent, the government or the banks? Because when inflation starts rearing its ugly head, push will come to shove, and the Fed will either have to stop QE to protect the banks from high inflation (and let interest rates rise), or continue QE forever to fund the government. If the Fed stops QE, the government has just lost its lender of last resort, and then what will they do? Will they cut spending and default, or will they nationalize the Fed and print, print, print until the inflation becomes hyperinflation? QE isn't funding the government, QE is funding (re-crediting) the banks while expanding government/taxpayer debt. The only way for the Fed to get Treasuries (a major source of bankster capitalization) is to buy them from the government. Without the Treasuries, they would be under-capitalized and the entire global banking system would collapse.

As for the nationalization of the Fed and print, print, print until the inflation becomes hyperinflation, I'll probably be dead by then so I'm not too concerned by the probability.