Hyperinflation: What It Will Look Like

Tuesday, September 7, 2010
By Paul Martin

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

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