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<p>[QUOTE=&quot;Cloudsweeper99, post: 1100315, member: 3011&quot;]I have never seen a convincing argument for hyperinflation in the present situation.&nbsp; By it&#039;s nature, a high level of debt is deflationary because it requires servicing, payoff or default.&nbsp; The markets can crash and debt can be defaulted as fast as the Fed can increase the money supply.&nbsp; And in an economy where the debt is money and money is debt, the more of it they create, the faster it defaults.&nbsp; So it is possible [but by no means certain] that we will see a situation where the demand for money to service debt increases faster than the increase in the money supply, and this will result in deflation even though the money supply is rising.&nbsp; These are not normal times.&nbsp; Don&#039;t expect normal results.</p><p><br /></p><p>And to be clear, I think there is a 50/50 chance of hyperinflation or deflation.&nbsp; I just wanted to give the deflation case a hearing because very few people consider it possible.[/QUOTE]</p><p><br /></p>

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