Hyperinflation: What It Will Look Like
by Gonzalo Lira
LewRockwell.com
I usually don’t do follow-up pieces to any of my posts. But my recent longish piece, describing how hyperinflation might happen in the United States, clearly struck a nerve.
It was a long, boring, snowy piece of macro-economic policy speculation, discussing Treasury yields, Federal Reserve Board monetary reaction, and the difference between inflation and hyperinflation – but considering the traffic it generated, I might as well been discussing relative breast size in the porn industry. With pictures.
Essentially, I argued that Treasury bonds are the New and Improved Toxic Assets. I argued that, if there was a run on Treasuries, the Federal Reserve – in its anti-deflationary zeal, and its efforts to prop up bond market prices – would over-react, and set off a run on commodities. This, I argued, would trigger hyperinflation.
The Rest…HERE