muses of the moment

April 18, 2012

Hyperinflation in debt part three

Filed under: Hyperinflation, Hyperinflationary Depression — totallygroovygirlfriday @ 12:43 pm

Still working from the assumption that the global derivative market is a new currency created by banks (investment funds, investments banks, brokerages, etc.) for and used within the shadow banking system……

….and the “money” that the Fed “prints” is to try to the keep the hyperinflationary crash in the shadow banking “currency” from contaminating the real economy.

GAAP defines hyperinflation as a 100% cumulative increase over a three-year period.

Click here for a chart via zerohedge on the total derivative market for the last thirteen years. As you can see from June 2005 through June 2008, the market rose between 50-100 % and crashed after 2008. But they are rising again, quickly.

This information still only charts regulated or reported over-the-counter derivatives. It is estimated that there are at least 300-400 trillion dollars more in under-the-table or private contracts. So, it is possible that this “currency” was indeed in a hyperinflationary state from 2005-2008.



  1. […] Hyperinflation in debt part three […]

    Pingback by Hyperinflation in debt part two « muses of the moment — April 18, 2012 @ 12:46 pm

  2. Louis,

    I am slowing, and not by any means certainly, thinking that these private agreements and swaps will take the physical assets out right. That by the time the real fiat currency is in hyperinflation, as you describe it, there will be no physical assets for sale. And that is why we may never see the high velocity in the fiat currencies or M1. I think that this will happen because the derivative or shadow banking “currency” and market is so much larger than the real global economy and even the global sovereign debt market.

    I am concerned that we may be looking for hyperinflation in the dollar (as a point on a timeline) that may never have a chance to come to fruition. That in the real economy we will move from where we are now to a barter system and the hyperinflation that will trigger that switch is occurring the shadow banking system now.

    I am still thinking out loud, and really appreciate your comments on the subject.


    Comment by totallygroovygirlfriday — April 18, 2012 @ 5:50 pm

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