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**dwestemesse** · 06-06-2012, 08:18 PM

Don't discount the fact that hyperinflation is as much a psychological phenomenon as a monetary phenomenon. If all the dollars overseas come back, that might be enough to spark the fire.

Right now people are EXPECTING QE3 as if this is a normal process in a free market economy. It is pretty clear that there no longer is anything akin to a free market economy left. But the market moves we are seeing in stocks & PMs presume (and need) that injection of easy money.

Don't be surprised when it is not immediately forthcoming. We could see wild swings in prices before any real hyperinflation happens - because of the psychological effect.

When prices drop, it is because there are no buyers with money in hand making the trade. If they drop severely, it could indicate the need to liquidate assets for other costs.

06-06-2012, 08:18 PM	#4
dwestemesse Join Date Oct 2005 Posts 478 Senior Member	Don't discount the fact that hyperinflation is as much a psychological phenomenon as a monetary phenomenon. If all the dollars overseas come back, that might be enough to spark the fire. Right now people are EXPECTING QE3 as if this is a normal process in a free market economy. It is pretty clear that there no longer is anything akin to a free market economy left. But the market moves we are seeing in stocks & PMs presume (and need) that injection of easy money. Don't be surprised when it is not immediately forthcoming. We could see wild swings in prices before any real hyperinflation happens - because of the psychological effect. When prices drop, it is because there are no buyers with money in hand making the trade. If they drop severely, it could indicate the need to liquidate assets for other costs.
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