Is hyper inflation on the way?

A

Airtight

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Is hyper inflation on the way as a result of all the eoconmic stimulus government world wide are gifting.

Surely, if it is an even bigger crash is coming our way in the next 5 - 10 years.

What do you think?
 
I think it is a very strong possibility.

It is unlikely that US will get themselves out of an inflation spiral. We in the Eurozone may also be in danger. Although the Euro governments aren't as spend happy and print happy as the US, we could experience an inflation backlash.

Also, it is worth bearing in mind that a couple of billion people from up and coming emerging economies will soon become consumers. This will increase demand for every day commodities - something which we haven't seen in history in such a grand scale.
 
Bear in mind though that they are trying to spend their way out of a deflationary spiral. If they got it just right, things could balance out. Chances are a gazillion to one against it, unfortunately.

I see little chance that the Eurozone would be unaffected in the case of US inflation. Exporters to the US would find that their income from there would be worth less and less ... indeed a very weak dollar anytime soon would mean the end of my job, and a lot of others.
 
To take advantage of hyper inflation in extreme cases- plenty of fixed rate debt to purchase income producing investments such as foreign rental property or dividend paying stocks.

Inflation pays off the debt for you!!
 
When is hyper inflation likely to happen and how long should it last?

Don't worry I am not going to invest on the basis of the content of your replys.
 
People seem to think it will happen when the current increasing rally on the US dollar ceases and when the Middle East, Japan, and China stop funding the US consumption by buying their bonds. It would then start to plunge downwards. How low it may go is anyones guess, likewise with the timing of when it will occur.

How long it could last is also guesswork. This depends on the quantity of money that will be printed and how long authorities insist on keeping the hyperinflated currency as the given country's primary legal tender. It is likely that the people would have long switched to an alternative form of money to carry out their dealings before the authorities would accept a change in the now damaged primary currency.

Apologies for the vague opinions on the timing!
 
High (if not hyper) inflation could be on the way for the UK as they import much of their raw material requirement.
 
Yes I've heard that. Apparently the North Sea oil reserves are drying up, making the UK a major importer.

Whether examples like this will lead to hyper inflation in the UK poses an interesting question.
 
Purple said:
High (if not hyper) inflation could be on the way for the UK as they import much of their raw material requirement.
Click to expand...


+1

Has to be a problem for the UK. Imports have to go up inversely with the drop in sterling.
 
Morgan Stanley analysts think hyperinflation is a possibility:

Hyperinflation is a possibility, say Morgan Stanley
Kaminska, FT Alphaville
Morgan Stanley's Jocahcim Fels and Spyros Andreopoulos look at the possibility of hyperinflation hitting the western shores of the UK, Europe and the US in their latest note. Their conclusion is a little scary:
" we believe that buying some insurance against the black swan event of high inflation or even hyperinflation makes sense and is relatively cheap currently."
[broken link removed]
 
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