FOFOA: Just Another Hyperinflation Post – Part 1

The 100 trillion Zimbabwean dollar banknote (1...

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Hyperinflation talk has come to the forefront once again (thanks to a few recent articles), and being my #2 (of 2) topic here at FOFOA, I have a small but relevant offering for you. This is a compilation of a few posts from a recent discussion I had on another forum. The subject was hyperinflation and the deflationists that emphatically say it is impossible here. And the question was asked, What do these deflationists mean by deflation? Monetary deflation? Price deflation? Asset deflation? And so on. “What is deflation?” was the primary question.

Always looking for a fresh angle, which I like to do, I thought a much more interesting question was, “What is a deflationist?” The term deflationist is one I have been using regularly on my blog for two years now. And it is a term that I appropriated, definition and all, from FOA’s writings a decade ago. Here are a couple of his “deflationist quotes” to kick off this post…

“Somewhere in the 1970s era I was exposed to the thinking of several different deflationists. It seemed that all of their conclusions came to the same end: that dollar deflation would rule the day, no matter what. Mind you now,,,,,, most of them were split on the finer points of the issue, but for all of them; Deflation was always the final outcome.”

And of course his most famous one…

For the rest of the article please click link below….

via FOFOA: Just Another Hyperinflation Post – Part 1.

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2 Responses to FOFOA: Just Another Hyperinflation Post – Part 1

  1. dpwozney says:

    If the stated value, of “Federal” Reserve notes, declines enough with respect to copper and nickel, the 1946-2010 U.S. Mint nickels, composed of cupronickel alloy, could become somewhat rare in mass circulation.

    The October 8th metal value of these nickels is “$0.0617794” or 123.55% of face value, according to the “United States Circulating Coinage Intrinsic Value Table” at

    • straydog01 says:

      Very interesting observation. Just goes to show that fiat currency is worth nothing and that ANYTHING of value will eventually be worth more than the face value of what is printed on it. Eventually the value of the paper that money is printed on will be worth more than the value printed on it.

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