James Turk - Hyperinflation Looms – The Dollar Arrives at Its ‘Havenstein Moment’

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James Turk - Hyperinflation Looms – The Dollar Arrives at Its ‘Havenstein Moment’

Hyperinflation Looms – The Dollar Arrives at Its ‘Havenstein Moment’

http://www.fgmr.com/hyperinflation-looms-dollar-arrives-at-its-havenstein-moment.html

 

Rothbard provides his usual brilliant insight to explain what happens once the “Havenstein moment’ is reached.  There are two alternatives. 

“If the government tightens its own belt and stops printing (or otherwise creating) new money, then inflationary expectations will eventually be reversed, and prices will fall once more – thus relieving the money shortage by lowering prices. But if government follows its own inherent inclination to counterfeit and appeases the clamor by printing more money so as to allow the public’s cash balances to ‘catch up’ to prices, then the country is off to the races.  Money and prices will follow each other upward in an ever-accelerating spiral, until finally prices ‘run away’…[i.e., hyperinflate]” 

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