Is hyperinflation on the horizon?
Repost from 3-1-2021
“Worryingly, many of the conditions that led to the extreme inflation episodes in Weimar Germany and in 1990s Russia have started to emerge. First, central bankers have been running ‘quasi-monetization’, or asset-purchase (QE) programs for over a decade with a stupendous increase during the past pandemic year (see Figure 1). Secondly, supply-chain disruptions have also started to emerge, which will start to crimp production capacities at some point. These are the two ‘pre-conditions’ for an inflationary crisis to materialize.”
USAGOLD note: Rarely in history have central banks made a public announcement of creating inflation simply because it is a kind of Frankenstein creation that takes on a life of its own and can become a monster. Yet that is precisely what central banks are doing at the present. Malinen describes the internal machinery of inflation – the hidden engine under the hood that drives the process. He says if the beast gets away it could create “total chaos in the financial markets…with the world descending into chaos.”