Home > Main > Update on The Hyperinflation Hoax – we’re gaining ground!

Update on The Hyperinflation Hoax – we’re gaining ground!

May 9, 2011

Great news!  TC is now on the first page of Google results for “shadow government statistics”!  for the post Why Shadow Government Statistics is very, very, very Wrong.  One of the major ways people reach this blog is through a variety of searches for “shadow stats”, “shadow statistics” and such.  It is great to see this on the first page of results.

We do not have hyperinflation.  People that say we do have Hyperinflation are either deluded, or not being truthful with you.   Hyperinflation in the U.S. on May 9th, 2011, is a cruel hoax.   Inflation is about 2-3% at this time.

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  1. Clonal Antibody
    May 11, 2011 at 9:39 pm

    From Daniel H. Neilson at INET – Shadow money, still contracting

    These days, one hears worries of impending inflation. These worries are misguided, and get taken down by informed commentators who point to low core inflation, low TIPS yields, or to high unemployment and low wage growth. There’s another response, which responds more directly to the indictment and which I don’t often hear articulated. Here goes.

  2. June 20, 2011 at 8:22 am

    Nobody is saying we are currently in Hyperinflation, they are stating that if things do not change we will be heading towards hyperinflation. Stating that others are saying we are in hyperinflation and arguing that point is ridiculous. If you know any history on hyperinflation, this is not even close. Also, you are stating that inflation is based upon pricing of goods, which is also wrong. Inflation has nothing to do with pricing of goods. Rise in prices on commodities is only a symptom of inflation. Inflation is the expansion of a country’s monetary supply, which the Fed is currently causing.

    If you then argue that the current expansion of the American monetary supply is not true and the continued printing of more money by the fed is false, then the delusion is based within your reports.

    It the government continues to spend at this trend, if the fed continues to purchase our T-bonds at the same rate and our budgets are not cut, we could see hyperinflation in the future.

    But if we just want to base it on prices at the pump and grocery store, last time I check, prices are up over 10% from last year across the board.

    • TC
      June 20, 2011 at 9:03 am

      You should check out this post on why we are all but helpless in the face of higher energy costs.

      Because of the extremely low elasticity of oil demand, the amount of monetary or fiscal changes required to change the demand for oil would be catastrophic.

      http://traderscrucible.com/2011/04/26/the-hyperinflation-hoax-is-worse-than-we-thought-we-cant-change-the-price-of-oil/

      Then you should check out this post on why we should only use what we can observe in the markets to guide our thinking on inflation.

      http://traderscrucible.com/2011/05/03/the-concise-way-to-destroy-the-igbc-and-why-to-destroy-it/

      Many people say we are heading for hyperinflation. But as you know, the path to hyperinflation requires going through high inflation. We do not have high inflation.

      If you think we have high inflation, say 10% inflation, then the U.S. Government will make $150 billion this year by issuing debt at .11% for T-Bils.

      http://traderscrucible.com/2011/04/13/shadow-stats-still-very-very-very-wrong/

      I agree – we do have decently high energy prices right now. But they are falling quite rapidly in the spot market as speculators get driven out. We are going to see negative headline CPI prints in the next few months, as the speculative bid under energy collapses and changes into a speculative sell.

      And yes, I argue that the money supply has nearly nothing to do with inflation. If it did, we would have 20%+ inflation right now. The money supply as conventionally calculated has exploded. Yet, our inflation is quite low, and some large portion of it was caused by a huge speculative stake in energy that is disappearing as I write these words.

  1. May 11, 2011 at 6:46 am
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