The Emerging Evidence of Hyperinflation
The comments below are an edited and abridged synopsis of an article by Alasdair Macleod
Macleod explains why the purchasing power of the dollar is hostage to foreign sellers, and says that if the Fed continues with current monetary policies the dollar will follow the same fate as John Law’s livre in 1720. As always in these situations, there is little public understanding of money, and the realization 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.
Up for discussion: an introduction; the dollar’s inflation; why QE is inflationary; the relationship between inflation and prices; banking and its cyclical consequences; and interest rates.
“It is becoming clear to a growing audience,” writes Macleod, “that in the absence of a change in inflationary policies, the days of an unbacked dollar are rapidly coming to an end, and it will take down the international fiat order upon which it is based.”