{"id":55198,"date":"2020-10-03T06:17:42","date_gmt":"2020-10-03T11:17:42","guid":{"rendered":"https:\/\/olduvai.ca\/?p=55198"},"modified":"2020-10-03T06:17:42","modified_gmt":"2020-10-03T11:17:42","slug":"the-emerging-evidence-of-hyperinflation","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=55198","title":{"rendered":"The emerging evidence of hyperinflation"},"content":{"rendered":"
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The emerging evidence of hyperinflation<\/a><\/h3>\n<\/div>\n<\/div>\n<\/section>\n
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Note: all references to inflation are of the quantity of money and not to the effect on prices unless otherwise indicated.<\/i><\/strong><\/p>\n

In last week\u2019s article I showed why empirical evidence of fiat money collapses are relevant to monetary conditions today. In this article I explain why the purchasing power of the dollar is hostage to foreign sellers, and that if the Fed continues with current monetary policies the dollar will follow the same fate as John Law\u2019s livre in 1720. As always in these situations, there is little public understanding of money and the realisation that monetary policy is designed to tax people for the benefit of their government will come as an unpleasant shock. The speed at which state money then collapses in its utility will be swift. This article concentrates on the US dollar, central to other fiat currencies, and where the monetary and financial imbalances are greatest.<\/strong><\/i><\/p>\n

Introduction<\/strong><\/p>\n

In last week\u2019s Goldmoney Insight,\u00a0Lessons on inflation from the past<\/a>, I described how there were certain characteristics of Germany\u2019s 1914-23 inflation that collapsed the paper mark which are relevant to our current situation. I drew a parallel between John Law\u2019s inflation and his Mississippi bubble in 1715-20 and the Federal Reserve\u2019s policy of inflating the money supply to sustain a bubble in financial assets today. Law\u2019s bubble popped and resulted in the destruction of his currency and the Fed is pursuing the same policies on the grandest of scales. The contemporary inflations of all the major state-issued currencies will similarly risk a collapse in their purchasing powers, and rapidly at that.<\/p>\n

\u2026click on the above link to read the rest of the article\u2026<\/p>\n<\/article>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

The emerging evidence of hyperinflation Note: all references to inflation are of the quantity of money and not to the effect on prices unless otherwise indicated. In last week\u2019s article I showed why empirical evidence of fiat money collapses are relevant to monetary conditions today. In this article I explain why the purchasing power of […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[7772,303,30372,13061,413,426,3676,538,20492,3650],"class_list":["post-55198","post","type-post","status-publish","format-standard","hentry","category-economics","tag-alasdair-macleod","tag-fed","tag-fiat-money-collapse","tag-goldmoney-insights","tag-hyperinflation","tag-inflation","tag-john-law","tag-money-printing","tag-money-quantity","tag-us-federal-reserve"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/55198","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=55198"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/55198\/revisions"}],"predecessor-version":[{"id":55199,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/55198\/revisions\/55199"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=55198"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=55198"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=55198"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}