Inflation Versus Hyperinflation -- The Crucial Difference

From Taipan Publishing Group
and Max Keiser.

...That is one of the great ironies at this juncture of financial history. The deflation monster still has not been vanquished! It is simply hiding under the bed, biding its time until the Fed-and-China-created stimulus bubble pops.

And when that bubble DOES pop, that's when things get really frightening. When the global economy endures some domino chain combination of Japan/Middle East/China/America implosion, the threat of Great Depression 2.0 comes roaring back, bigger and uglier than before (as all the extend and pretend actions taken until now have only made the problems worse).

That is the point where true panic comes in... when the attempt to stop "normal" inflation triggers an economic collapse that rivals Great Depression conditions. At that juncture, it will be apparent to all that the Federal Reserve has run out of bullets... that "more stimulus" simply cannot work... that trillions have already been thrown down the drain.

It is then, when the monetary authorities wet their pants in the face of a new deflationary panic, that the real threat of hyperinflation returns to the fore. If all hope becomes lost in a hopeless situation, we could see the Fed desperately propose something like QE2 times 10, on the order of not $600 billion but $6 trillion. That is when the real horror would begin...

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