Category Archives: Hyperinflation

n economics, hyperinflation is inflation that is very high or “out of control”. While the real values of the specific economic items generally stay the same in terms of relatively stable foreign currencies, in hyperinflationary conditions the general price level within a specific economy increases rapidly as the functional or internal currency, as opposed to a foreign currency, loses its real value very quickly, normally at an accelerating rate. Definitions used vary from the International Accounting Standards Board’s a cumulative inflation rate over three years approaching 100% (26% per annum compounded for three years in a row) to Cagan’s (1956) “inflation exceeding 50% a month.” As a rule of thumb, normal monthly and annual low inflation and deflation are reported per month, while under hyperinflation the general price level could rise by 5 or 10% or even much more every day.

A vicious circle is created in which more and more inflation is created with each iteration of the ever increasing money printing cycle.

Hyperinflation becomes visible when there is an unchecked increase in the money supply (see hyperinflation in Zimbabwe) usually accompanied by a widespread unwillingness on the part of the local population to hold the hyperinflationary money for more than the time needed to trade it for something non-monetary to avoid further loss of real value. Hyperinflation is often associated with wars (or their aftermath), currency meltdowns like in Zimbabwe, and political or social upheavals, plus an aggressive bidding against the money on currency exchanges.

Gulf of Mexico Oil Spill Blog U.S. Treasury Bubble

  The Largest Bubble in U.S. History On August 6th after S&P downgraded the U.S. debt rating from AAA to AA+ with a negative outlook, NIA prayed that Americans would not make the mistake of buying U.S. Treasuries as a … Continue reading

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Gulf of Mexico Oil Spill Blog NIA Exposes Debt Ceiling Truth

NIA Exposes Debt Ceiling Truth NIA hasn’t written about the whole debt ceiling issue over the past few weeks because in our minds it is completely irrelevant. Our elected representatives in Washington along with the mainstream media have been wasting … Continue reading

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Gulf of Mexico oil Spill Blog Hyperinflation Aftermath Gold Standard

Hyperinflation Aftermath Gold Standard In Hyperinflation’s Aftermath, How Germany Went Back to Gold by Nathan Lewis It takes almost nothing, and little to no gold, to return to a gold standard. Germany, as is well known now, had a hyperinflation … Continue reading

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Gulf of Mexico Oil Spill Blog U.S. Economic and Inflation Update

U.S. Economic and Inflation Update NIA Releases U.S. Economic and Inflation Update The official U.S. unemployment rate rose during the month of May to 9.1%, up from 9% in April, with only 54,000 non-farm jobs being created for the month. … Continue reading

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Gulf of Mexico Oil Spill Blog Zimbabwe Gold Standard Dollar Demise

Zimbabwe Gold Standard Dollar Demise Zimbabwe Seeks Gold Standard, Says U.S. Dollar’s Days are Numbered Zimbabwe’s central bank chief, Dr. Gideon Gono, urged that the nation return to a gold standard and said that the U.S. dollar’s days as the … Continue reading

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Gulf of Mexico Oil Spill Blog ‘College Conspiracy’ the Documentary

‘College Conspiracy’ the Documentary The National Inflation Association (NIA) is getting ready to release its latest feature documentary ‘College Conspiracy’. NIA intends to release the movie 5 days from now on Sunday, May 15th. ‘College Conspiracy’ will be the most … Continue reading

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Gulf of Mexico Oil Spill Blog Stealth Inflation

Stealth Inflation The Quiet Hyperinflation of 2011 By Michael Lombardi Inflation in Venezuela is running at 27.4% a year. The country devalued its currency earlier this year to deal with the rapid inflation rate. Yesterday, the European Union statistics office … Continue reading

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Gulf of Mexico Oil Spill Blog Fed Full Employment Fallacy

Fed Full Employment Fallacy Food and Energy Inflation is Not Transitory Federal Reserve Chairman Ben Bernanke on Wednesday held his first press conference in history. The press conference took place shortly after the Fed announced its decision to leave the … Continue reading

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Gulf of Mexico Oil Spill Blog Gas Prices Federal Reserve Policy

Gas Prices Federal Reserve Policy Another 19 Cents Gasoline demand falling, but it can’t trump high crude, says Lundberg CAMARILLO, Calif. — The U.S. average retail price of regular grade sits 34.37 cents per gallon below its all time high … Continue reading

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Gulf of Mexico Oil Spill Blog Hyperinflation US QE2 Yu Yongding

Hyperinflation US QE2 Yu Yongding Former PBOC Adviser: US QE2 May Lead To Hyperinflation–Paper BEIJING (Dow Jones)–Chinese academic and former People’s Bank of China adviser Yu Yongding attacked the U.S. Federal Reserve’s policy of quantitative easing in an editorial in … Continue reading

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