Inflation/Deflation

It is difficult to say exactly when hyperinflation will hit a currency. However, I am convinced that the danger level is so high for most fiat money that it is worthwhile for everyone to increase their understanding of hyperinflation. This article presents 10 frequently asked questions or objections about hyperinflation with answers.

After seeing the latest string of events unfold right before our eyes, many are openly pondering whether we may see hyperinflation hit the US shores. Rather than ponder Trump’s latest executive orders or over the top pronouncements, let us first look at what hyperinflation is and how it works.

Costs of living rise and fall differently in different areas. Do you think that prices in Beverly Hills, CA change the same as prices in Gary, IN? Of course not! The Chapwood Index reports the unadjusted actual cost and price fluctuation of the top 500 items on which Americans spend their after-tax dollars in the 50 largest cities in the nation.

This look further back into the past dramatically illustrates the extreme oscillation between inflation and deflation during the first 70 years of our timeline.

We are now on the eve of an economic crisis of unfathomable proportions due to an insoluble debt problem. Holding precious metals will be invaluable insurance to survive this crisis financially.

Inflation enters the economy in stages. It’s not as though the Fed begins to print money and poof! Inflation appears. It takes time. This article explains the 3 stages of inflation and where we are at the present time.

If the dollar keeps rising - which I don't believe it will, or can - U.S. exports will fall and imports will rise, negatively affecting GDP and the trade deficit. Things are going to get choppy.

Everyone seems to be preoccupied with rising inflation nowadays. While I agree that inflation will rise over the next 1-3 years, I don’t think it will even reach high-single digit levels. A return to the 1970s’ double-digit inflation is extremely unlikely. [Here's why.]

The Fed has been trying to increase inflation, operating at the macro level, but what does inflation mean at the micro level — specifically to your household? Let's do some analysis of the Consumer Price Index, the best-known measure of inflation.

The claim that, in normal times, energy prices have a direct influence on long-term inflation expectations is puzzling, as it seems to imply that monetary policy is not able to offset price shocks even five or ten years down the road. If confirmed, it could have significant implications on how inflation dynamics are forecast. Hence, we believe that the claim warrants further scrutiny.