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<p>[QUOTE=&quot;Cloudsweeper99, post: 1139294, member: 3011&quot;]Raqem did a pretty good job of answering you.&nbsp; I guess what bothers me more is that the NIA missed what is perhaps the only important point in predicting hyperinflation -- that it occurs only when the increase in supply of money vastly exceeds the increase in demand for money.&nbsp; We aren&#039;t in that situation.&nbsp; The demand for money to increase the financial reserves of financial institutions, fund underfunded pension plans, and repay debt is enormous.&nbsp; So it is very important to attack the messenger when the messenger doesn&#039;t have the knowledge they pretend to possess.&nbsp; </p><p><br /></p><p>I&#039;ve said many times that I think there is about an equal chance that we will have inflation or deflation.&nbsp; The recent price increases in commodities might turn out to be inflationary, and might not.&nbsp; It depends on how the Fed reacts.&nbsp; In the 70s, they decided to monitize the price increases and set off a wage/price spiral.&nbsp; So far, there has been no general increase in the income of consumers, so a price increase in, say, gasoline has to be offset by a reduction in the price or quantity purchased of something else.&nbsp; This is not systemic inflation where the general price level of just about everything rises.[/QUOTE]</p><p><br /></p>

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