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Re: Can we really get hyperinflation when the QE money is …

  • Fri, Dec 10, 2010 - 02:38am

    #26
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    Re: Can we really get hyperinflation when the QE money is …

Timeandtide… thank you for the thoughtful dialogue.. I spoke to some of your points in the newer Inflation thread.  I will admit it… I am a Goldbug…. and you… are a paperbug.  

Have you seen Gonzalo Lira’s pieces on hyperinflation? His posts on the subject can be found in the first spots down this page;

http://gonzalolira.blogspot.com/p/directory-of-posts.html

I don’t think we will go the route of Trillion $ bills either… but I do think in the end we will see hyperinflation of a sort. 

I will say this – and I have argued, in person, with no less than Nicole Foss (of The Automatic Earth) herself when I attended a talk she gave in Rhinebeck, NY…. there is no way on earth that Gold is going to deflate in the face of a currency crisis.  Again, I believe that many are thinking from the standpoint of the average Joe, who will be scrimping for necessities during the endgame.  The average Joe has little net worth left at this point.  But the top 5% … those with liquid net worth maybe $1M to… well…. lots of millions… are going to want to hedge.  They are going to hedge with Gold and Silver and other real things.  When this happens you will see the ULTIMATE inflation vs deflation endgame….  Average Joe’s with no savings will be dumping chromed out Harley’s for pennys on the dollar, while farmland and Gold will be shooting up even more.  This will be the flavor of the endgame IMO.  It is not all or nothing… it will be inflation of the things people need;  food, gasoline, wealth preservation (for some), and deflation of things people don’t need (collector cars, boats, other collectibles).