Kind of like the "broken window is economic stimulus" fallacy.

The economic activity of making and replacing the broken window is seen. The economic activity that the shop owner would have done had he spent the money elsewhere that he instead had to spend on replacing the window is not taken into consideration. The other side of the balance sheet.

The one thing that I do not think Denninger "gets" is that hyperinflation is also deflationary. The economy is in deflation but the currency is becoming worthless faster than prices can fall because of the deflationary environment, thus rising prices.

John