Hyperinflation as the ultimate end just seems like the most politically accepted path to follow. I hope we do not go there. We should not go there. I have not said we would have hyperinflation. I've simply said that until we change the current direction we are heading, I will not take it off the table as a possibility. Defaults and deflation is the much preferable way to bring a credit bubble that has inflated to the point it can not be sustained back to a sustainable equilibrium. A debt reset so to speak. Defaults that so far the powers that be are not willing to let happen.

Currency creation is only one aspect of hyperinflation. One contributing factor. Velocity does the bulk of the work. It is the loss of confidence that causes it. Currency has no value other than the value people place on it as a claim check against real goods. It is all about confidence. It is when this confidence gets shaken that the possibility of hyperinflation occurs. At present we are far from anyone loosing confidence in the US Dollar. But velocity can change rapidly. Watch the Mike Malony video's I linked to in an earlier post. He explains it pretty well.

John