What is Hyperinflation and How to Survive it

Are you prepared for runaway inflation? Is anyone? We discuss what hyperinflation looks like and tactics to survive it.

The Bank of America recently warned of “transient hyperinflation.” That sounds bad, but how bad depends on how you define hyperinflation.

The definition of hyperinflation is “inflation at a high rate,” as “uncontrollable inflation,” or “when prices raise uncontrollably,” all of which are not very precise.

What is hyperinflation? Is it double digit inflation? If so, does it start at 11 percent, or closer to 50 percent? Does 100 percent annual inflation count as hyperinflation? Or do you have to reach absurd levels of annual inflation, like 7,000 percent?

Hyperinflation appears to be like art: Economists know it when they see it. And so will you and I, because with runaway inflation, we won’t be able to afford anything.

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Is Inflation Transitory? Some, Yes, but Most is Not

The government and the Fed keep telling us that inflation is transitory. Don’t believe them. Some inflation is transitory, but too much of it is not and that will keep prices rising.

I spoke to a smart guy in the financial industry whom I have known for more than 20 years, and I asked him, “Do you think inflation is transitory?” His answer: Yes and no. Some of it probably will be transitory, but some of it definitely is not.

Here’s a boiled down version of his explanation:

Examples of Transitory Inflation

When prices rise because plant closures lead to shortages, because shipping costs escalate or for other reasons that we can expect to be cured in the next year to 18 months, then it is fair to call those transitory. For example, when more microchips reach the market, car and truck production will return to their traditional rates or better, and the number of new cars on dealer lots returns to a reasonable number. If supply and demand is the only reason for the increase in care prices, then car prices will stabilize.

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Transitory Hyperinflation is Here and More Bad News

I head down the mountain to revisit society and the news isn’t good. Gas is more expensive, food is costly, and the word “hyperinflation” is no longer just used to describe other countries,

I am on the road today, and after spending seven hours in the truck, I don’t think I have an original essay in me and I really need to get some sleep. So, instead I am giving links to important stories and adding a few comments.

Hyperinflation

The Bank of America’s new Inflation Meter is pointing to transitory hyperinflation, according to this article in ZeroHedge.  I have been writing about inflation or months, but this was still a “WTF” moment for me.  If we have already moved from inflation into hyperinflation, transitory or not, things are pretty bad.  Read their article and if it freaks you out a little, read these recent posts of ours:

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