Transitory Hyperinflation

 

 

 Bank of America is reported to have said:

On an absolute basis, [inflation] mentions skyrocketed to near record highs from 2011, pointing to at the very least, “transitory” hyper-inflation ahead.

 

The article also says:

      Because if there is one thing hyperinflation is, it's "transitory."

 

This was in a phone call and probably B of A wanted to say "high inflation" and not "hyper-inflation".  However, this could be a freudian slip, showing what they really think.

 

Normal money is both a store of value and a medium of exchange. Hyperinflation is the transitional stage where a money no longer acts as a good store of value but it is so far still being used as a medium of exchange.  Eventually it fails as a medium of exchange also,  and is no longer money.   So fundamentally hyperinflation is the transition period between half dead money and dead money.  It is the process of "How fiat dies".   So as the article says, "if there is one thing hyperinflation is, it's transitory".  :-)