Democrat's perspective on the possibility of hyperinflation

[Codename46]

Hey guys,

I hang around a lot of Libertarians, and the one thing they love to talk over and over about is the prospect of hyperinflation to the point of economic collapse (think Weimar Republic) coming to the U.S due to the amount of money the Federal Reserve is printing along with the National Debt. I was wondering what y'all make of this hypothetical scenario.

Thanks.

[ironrooster]

1. not going to happen - b/c we are the reserve currency.

now, if something happens to disturb that position - SDR... basket of currencies, inflation will get
worse - but runaway inflation, no. that said, let me ask you for a "libertarian" view:
in a SHTF scenario what is it best to have; gold or ammunition? i vote for ammunition.

[Codename46]

2. As a gun owner, my vote is for ammunition and silver :)

[Po_d Mainiac]

5. And groceries ...Welcome to DU n/t

[Art_from_Ark]

4. As long as the US dollar is a reserve currency, we are safe from HYPERinflation

But regular inflation is still a big concern, and it is constantly eating away at fiat money savings and fixed incomes.

The US is very lucky in that, with the exception of a few isolated instances, hyperinflation has never really been a problem. Nearly every other country in the world, however, has experienced it at one time or another.

[AtheistCrusader]

7. We're poised for a sharp rise in inflation and interest rates.

I think the 'Argentina' hyper-inflation scenario is off the table for the most part, but there are rocks, and a waterfall ahead for most people.

I've been trying to pay down debt like crazy, but the house... It will take me at least a year to erase the equity loss off the loan due to the nearby foreclosures, and values are still dropping. I don't know anyone in a better position than I am, in the neighborhood.

[Jim__]

3. The hyperinflation of the Weimar Republic was mostly due to the Treaty of Versaille.

Can these people tell you what the similarities are between the situation in the US today and the situation of the Weimar Republic in the early 20s? Or, are they just repeating something they heard Glenn Beck say (he makes the claim all the time)?

[bemildred]

6. Babble.

One may certainly expect a bumpy road ahead, one may certainly expect more inflation, but hyperinflation does not always lead to collapse, and the US is a long way from even the 1970s style of inflation, at present.

[Taitertots]

8. The quantity of money created is insufficient to cause hyperinflation

Hyperinflation theories are totally unrealistic for several key reasons.

- The Fed bought and holds assets, which will be resold when inflationary pressures return.

- There simply hasn't been enough money created for it to cause a problem. The percent change in the money supply is insufficient to justify high inflation.

- We are printing money in the wake of strong deflationary pressures, hyperinflation comes when expansion and inflationary pressures happen at the same time.

Your Libertarian friends simply don't know what they are talking about.