muses of the moment

August 13, 2013

Latest Blog Post from Martin Armstrong dated August 11, 2013

Click here for Martin Armstrong’s latest blog post entitled Defining Hyperinflation: The Coming New Currency dated August 11, 2013.

Very important post. There is major disagreement in economics about the true definition of hyperinflation. Martin spells out his definition of hyperinflation and why he thinks we will not get to that point. in the US Dollar.

Martin does advocate that before hyperinflation, we will have an international 2-tier system. A virtual reserve and international trading e-currency and a national “dollar” currency. From Martin’s post:

Some define hyperinflation as merely the cumulative inflation rate over three years approaching or exceeding 100% with an annual rate above 25%. The reason I do not agree with that definition is because many countries have had brief periods of inflation at that level, survived, and even the currency lives for another day. The USA experienced about 20%+ going into 1980.

gg says: Groovygirl still wonders where all the global dollars will go. Can they really all be absorbed by the new e-currency? She thinks some must flow back to the national dollar currency. It is still possible of a dislocation after (or a panic before?) the e-currency international set up. GG is not confident that they can fore-see all consequences.

There is also the issue of the widening gap between wages and living expenses (and of course, higher taxes). Baby boomers are and will be on fixed incomes. Any, any uptick in monthly and annual expenses whether inflation or additional taxes or individual medical expenses, and it sure looks like hyperinflation to individual on the ground.

I don’t know about you, but gg remembers the 70’s inflation. It was no picnic. Baby boomers will be in a completely different place in their economic and income-producing life if that should happen again. I do not think they will be that forgiving at the voting booth.


  1. GG,

    I agree with you. It WILL be hyperinflation for those of us without millions of dollars in the bank. Inflation WILL grind the economy to a complete halt. The primary items will be food, gas and ammo!

    I’m still not sure about his discussion about an “e-currency”. I have to study it further. It just sounds like more funny money to me. The clowns will still be managing the circus.

    I was 10 years old in 1972 and I remember how bad my family had it. We were poor to begin with. I remember gas rationing. I remember food stamps because my father was unemployed multiple times. Not fun but we lived through it and we had fun. People forget that. It’s not the money that makes life fun. It’s family, activities … Bring it on!

    Comment by mikephila — August 14, 2013 @ 3:33 pm

  2. It’s interesting that even Armstrong has difficulty weaning himself from the funny money paradigm. Since the money most susceptible to debasment is that which can be printed at a keystroke, what on Earth leads him to think that a new denomination of the same crap will not be subject to the same corruption, especially under the same Establishment? I take my cue from the Chinese and others who are getting Real. There is a reason why the the most devious figures in history have actively hoarded Real Money. They invent lies for the rest of us, and understand their limits.

    Comment by Lore — August 18, 2013 @ 3:12 am

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