On a fundamental note: USD is soon going to go into hyperinflation:
Actually, no, it's not. As bad as that is, the hyperinflationary stage of a fiat currency
always requires a political driver. Not to say it
can't happen in the near future, but there would still need to be some major black birds landing on Swan Lake. Mild inflation favors the banks and those closely connected to them, but they know that massive inflation kills the golden goose. The central bankers would not permit such inflation rates
unless they are forced into that position, which for all practical purposes means that political authorities have forced them to do so. In the case of the Wiemar Republic, that political force came from outside the country. In the case of Zimbabwe, it was a misguided series of political decisions by an uneducated dictator with tribal tendencies that none of his yes men had enough balls left to say anything.
Not to derail the thread but don't you think there's plenty of political motivation right now? Unsustainable spending and debt levels will certainly encourage the money spigot to continue to flow, even if the political class denies it. There is far more motivation for that then to drastically cut spending. In addition all it takes is one major creditor to decide our bonds aren't safe and it could start a run, with the Fed as the only remaining buyer.
Don't get me wrong its looking more and more like another deflationary scare this summer first but that'll just be an excuse to print more. I agree the bankers prefer the slow and steady inflation but I think they're finally losing control of the system.
On a bitcoin note who's rooting for 18?
A sovereign debt default by the US is not just remote, it would signal to the world's bondholders that there was
no safe haven left on Earth. Gold, silver and some classes of commodities would shoot for the moon, but that is not the same as inflation. Inflation, at it's core, is expansion of the monetary base beyond the growth of the underlying economy; which favors those with first access to the new currency. Hyperinflation, therefore, is the panic expansion of monetary base by political will. No bankers would voluntarily do this, they would rather have massive deflation because with deflation at least their con game could potentially resume after the crunch. Once hyperinflation begins, there is no historical evidence that it can be stopped prior to the total destruction of the currency itself; if for no other reason than the public has already lost trust (in the government, in the currency itself) and will actively avoid transacting in the currency at all, and when they must will actively avoid holding that currency. This results in a massive increase in velocity, as every buyer is trying to spend what they have before the value goes down further.
If this were to happen to the US (not impossible) where then would the wealthy find haven?
i also seen it before.
