muses of the moment

June 14, 2012

Hyperinflation vs. High Inflation

Click here for an excellent interview with Eric Janszen as he explains the difference. Very good information here, listen twice. Groovygirl has stated before the reasons she feels that a hyperinflation is still possible. Those items still apply.

groovygirl also disagrees that a hyperinflation is the only financial scenario in which an entire generation’s wealth can be wiped out. The implosion of debt  is another scenario. Click here. The average American lost 40% of their un-inflation-adjusted wealth in 3 years. Factoring in the loss of purchasing power of the dollar, gg would estimate the real loss at 60-70%. If dollar goes to .60 and housing doesn’t recover, which it won’t, we are quickly nearing a 100% loss.

groovygirl believes that what Eric outlines is the best case and most probable with a severe bond crisis and the dollar at .60 around 2015 (which agrees with Martin’s timing as well). But gg doesn’t discount a hyperinflation before or after Eric’s outline of events, (brought on by a collapse of the petro-dollar or the creation of a world trading currency or a combination of those two under the umbrella of a severe global debt default). She also is not confident that the Fed can control that dollar fall and she is not confident that governments’ policies will not stay out of the way.

Eric does address the petro-dollar issue. Good info there.

Side musing: physical gold (and silver) are good protection in a high inflation or hyperinflation situation. GG has at least 10-20% of her total wealth in physical metals. Eric also is calling a possible top in the gold cycle near to 2015, which is in agreement with Martin Armstrong.

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3 Comments »

  1. GG,

    I like your site very much.
    It’s high on my list of favourits because you try to look behind the noise en you don’t seem to focus on deflation allone, but you factor in the posebillity of hyperinflation (i also think this will be the outcome).

    I commented here a couple of times but never had any replays (i think).

    Do you know the blogger FOFOA? You would really like his readings a lot!
    He writes about hyperinflation… Why it will come and how it will come.

    please read his article http://fofoa.blogspot.se/2012/05/inflation-or-hyperinflation.html

    I do not know the guy (or girl 🙂 ) but i really think he is MUST read!!!

    Hope you don’t mind and sorry if my englisch is not good (from belgium)

    Greetz

    Comment by stefan naudts — June 14, 2012 @ 1:33 pm

  2. I will read.

    gg

    Comment by totallygroovygirlfriday — June 15, 2012 @ 10:15 am

  3. hello GG,

    Did you already have the time to read FOFOA’S article http://fofoa.blogspot.se/2012/05/inflation-or-hyperinflation.html ?

    I also want to point you to the fact that leap2020 also credits his blog:
    http://www.leap2020.eu/notes/Inflation-or-Hyperinflation_b4172061.html

    There are also a lot of uncredibly informative other post on his blog …

    Greetz

    Comment by naudts — June 20, 2012 @ 7:57 am


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