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Message: A positive outlook...not!

Hyperinflation is a hard animal to predict. The cause unlike normal inflation is the complete loss of confidence in a currency. As such the onset is usually very quick as it spreads through the population. When people loose confidence they try to trade their currency for other goods. At first things they need and latter for anything. The quick turnover of money increases money velocity and no new money is then needed to continue the effect.

The question then becomes a physiological one. What is the trigger that makes people loose complete confidence?

So far multi trillion dollar spending promises and deficits have not done the trick. I think the key here is going to be the foreign creditors. As long as they show confidence so will others.



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