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Message: Note to Investor about Hyperinflation

Note to Investor about Hyperinflation

posted on Dec 07, 2009 01:59PM

J., Hyperinflation is a monetary event. It has nothing to do with business conditions. What these writers propose seems plausible on the surface, but ultimately cannot be accepted as a a reliable indication of short term outcomes in light of present Fed actions. You are welcome to buy as many treasury securities as you would like, but treasury securities are no more than promises to deliver dollars at a future time. I have no interest in acquiring a promise to get anything that's supply can be increased so easily and with so little effort and that will continue to be increased in such a manner. Would you buy stock in a company if they publicly declared they were going to increase the float by 50 times in the next year without any change in underlying business conditions? The dollar is the stock certificate for the U.S. There will be massive inflation in the future, most likely of all currencies except gold and silver. This doesn't sound to high brow or fancy, but it is what will inevitably happen. A.


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