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Great Depression plus hyperinflation
- Thread starter PeacePlan
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ctiger2
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Jim Rickards stated that we'll probably have Hyperinflation followed by massive Deflation all during the current depression we're in now.
http://kingworldnews.com/kingworldnews/Broadcast/Entries/2010/5/22_Jim_Rickards.html
http://kingworldnews.com/kingworldnews/Broadcast/Entries/2010/5/22_Jim_Rickards.html
hugolp
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I dont see how there can be hyper-inflation and then deflation. I could see deflation and then hyper-inflation, but I dont see how it could be possible the other way arround. Deflation occurs because of debt delaveraging, but hyper-inflation wipes out the debt, so I dont know how you can have deflation just after hyper-inflation.
ctiger2
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I don't know. Maybe we'll have Deflation and then Hyperinflation. Either way I'm getting ready for some massive flation.
Zippyjuan
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I don't think we will see prices going up by over 50% or more a month in the US (which is a fairly standard definition of hyperinflation). This is not to say that I don't think we will have inflation in the future- we almost certainly will. Companies are still reluctant to raise their prices much due to weak demand for their products. Buy a movie ticket in April for $10, in May the same movie ticket is up to $15 and June $22.50, July it is $33.75- at 50% a month.
If you do get a hyperinflation it will probably result in a devaluation of the currency (knocking some zeros off) which could make the price numbers LOOK like they deflated but in terms of purchasing power (real measure of inflation or deflation) it isn't since income numbers were knocked off too.
If you do get a hyperinflation it will probably result in a devaluation of the currency (knocking some zeros off) which could make the price numbers LOOK like they deflated but in terms of purchasing power (real measure of inflation or deflation) it isn't since income numbers were knocked off too.
