Quote from: AlexGR on March 31, 2014, 12:35:37 PM

Quote from: riekinho on March 31, 2014, 09:08:18 AM

Almost anybody surfing these forums is familiar with Austrian economic school views and the drill that goes along following lines:

- massive US debt
- even bigger unfunded liabilites
- massive FED printing of money
- mismanagement, debasing of currency has led (across space and time) to one thing and one thing only which is hyperinflation

Sitload of books predict the financial doomsday - some of them now almost a decade old.

So how come US and it's counterfeited dollar are still afloat? Why isn't it happening?

The long answer is here: http://www.scribd.com/doc/157370969/Hyperinflation-Dollar-Collapse-Precious-Metals.

The short answer in bullets:

1) Hyperinflation is one thing, large inflation is another. Hyperinflation is end-game scenario / doomsday scenario with prices escalating so fast that it's not even funny. You could wake up in the morning and bread costing 1$ and by noon it could cost 10$. This has been blow out of proportion as being a realistic possibility right here, right now, without a catastrophic event.
2) Manipulation of the markets regarding precious metals, energy, etc keep currencies like USD artificially "stable".
3) Western countries are in competitive devaluation - which make things in USD terms seem stable. Even switzerland promised to print as much as they can in order to keep their value steady and prevent inflow of capital to their currency from people fleeing EUR / USD etc.
4) The global-debt control mechanism through which tens of countries are indirectly controlled through a USD-denominated debt, would essentially be set free by a worthless USD debt that could be repaid easily. This will not happen.
5) The USD is still much better than most national currencies out there, especially of developing nations, which have no international demand and thus their printing is producing actual inflation much larger than the USD. Think of it as a bitcoin inflation vs altcoin inflation type of situation.
6) While the money quantity is inflating, at the same time ordinary people do not get access to this extra money. In fact people are experiencing deflation, in that they have a decreasing amount of money to spend for things due to increased cost of life, taxation, stagnant or reduced salaries etc etc. Banks are also regulating the flow of money to/from society in that they decide when to loan or when to gather past loans. If the government is on an expansive monetary policy, commercial banks can (and do) reduce liquidity on the market to counteract the effect that this would have if suddenly everyone went on a buying spree. For example if banks stop loaning out and start collecting past debts in a larger percentage than the issuance of new loans, society will experience a liquidity crisis and deflationary tendencies - no matter if the money supply of the central bank goes 2-5-10x.

that, most of the newly MB goes to support existing overreached M# supply. I see no problem here as the supply already exist (in whatever shady way). The Central bank simply is called to support it.
I see it like a Pull, rather than Push