How To Hide A Hyperinflation – Part 1

by Jeff Nielson, Sprott Money:

In previous commentaries; readers have read firm conclusions that the U.S. government (via the Federal Reserve) has already hyperinflated its currency – past tense. Yet what do we actually see as we look around us? We see this obviously/blatantly worthless currency with its exchange rate versus other currencies propped-up at a particularly absurd extreme. Where is the “hyperinflation”?

Regular readers can automatically answer that question. We see the hyperinflation in the chart below: the exponential increase in the U.S. monetary base (i.e. its supply of money). Both the shape of the curve and the quantum of the total increase shriek “hyperinflation”.

“Inflation” is an increase in the supply of money. This is the universally accepted economic definition for this term. What most people think of as “inflation”, the serial increase in the price of goods, is merely the inevitable consequence of inflation – inflating the money-supply.

If “inflation” is an increase in the supply of money, and the U.S. supply of money has increased literally at a hyperbolic rate, then by economic/mathematical definition, the chart above represents hyperinflation. Case closed.

Or is it? Where is the massive price-inflation, which readers have just been told is an “inevitable consequence” of this hyperinflation? Part of the answer is that this hyperinflation has been hidden, and thus the price-hyperinflation has been delayed. The other part of the answer is that, historically, actual “hyperinflation”, meaning a currency officially plunging-to-zero, is “a confidence event.”

What this means, is that history tells us there is always a lag between the time a currency has been hyperinflated (as we see above), and it actually loses all official value as a medium of exchange. The length of that lag represents the amount of time which the Chumps using this worthless currency can be deceived into believing that it is not worthless.

With respect to the U.S. dollar, which as shown above is now worthless-by-definition, this deceit is the culmination of a multi-decade program of fraud and manipulation, along with the saturation propaganda from the Corporate media that the U.S. dollar is a “strong” currency. Tell a Chump, every day of his life, that the U.S. dollar is “better” than the other (worthless) currencies, and it will take a long time for such a Chump to see/understand the Truth.

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