Friday, January 25, 2013

Comparing Roman and US Inflation

Zerohedge has a good article on Roman hyperinflation.  I recommend reading it all.  Below is an image from the article comparing US inflation to Roman with a "You Are Here".

Thursday, January 17, 2013

Nuclear and Monetary Meltdowns

The central planners at the government and central bank think they can print some money and control the inflation rate like a thermostat on a room.  You want things a bit hotter you turn it up a bit, a bit colder you turn it down a bit.  The reality is it is like a Nuclear Reactor.  If you do things wrong there are feedback loops such that events spiral out of control.   Hyperinflation is how it spirals out of control.  Most people don't really understand hyperinflation, so when it comes most people are surprised.   Having people in government and central banks who do not understand hyperinflation controlling your fiscal and monetary policy is like having people who do not under understand nuclear reactors controlling a nuclear power plant.  Things are just bound to end badly.

I saw this analogy in a video.

Monday, January 14, 2013

Modern video of Hyperinflation

In 2011 Belarus got hyperinflation. In this video someone uses a bag of cash to buy some beer. This youtube video of piles of cash from just over a year ago makes hyperinflation more real than a black and white picture of a wheelbarrow full of cash from 90 years ago.

I suspect that credit cards will be used more and more if the US heads into hyperinflation.  Counting lots of paper money looks too painful.  If there was very much of this I think a supermarket would put a bill counter on one "cash line" and make anyone using lots of paper money go into that slow line.