Comments on: Where is the hyperinflation? https://habitablezone.com/2011/06/25/where-is-the-hyperinflation/ Fri, 03 Apr 2026 22:41:18 -0700 hourly 1 http://wordpress.org/?v=3.3.1 By: ER https://habitablezone.com/2011/06/25/where-is-the-hyperinflation/#comment-2882 ER Mon, 27 Jun 2011 13:21:59 +0000 http://habitablezone.com/?p=2011#comment-2882 A good article, although I confess I have trouble following it. I too have been waiting for the other shoe to drop on inflation, not just because I am on a fixed income, with my assets all in cash (I am vulnerable) but because even for a non-economist, it appears to be long overdue. After all, my Weimar model is breaking down! No, I have no comments or explanations. I am just as mystified as everyone else. All I know is that inflation is good if you're in debt, because you don't have to pay back all the purchasing power you borrowed. I also know that for those who hold real assets, (actual capital, not currency) the purchasing power of the dollar is not quite as important as for those who are totally liquid, like me. I know the government is acting like it wants to provoke inflation deliberately, (whether that is a good idea or not is debatable, but at least I can see their point of view) but it is not happening. That, at least is logical (not good, but logical). But business is holding on to cash too, not spending it on real assets before it becomes worthless. That makes no sense at all. And no one is borrowing any more, taking advantage of those low interest rates and inflated payback dollars. Maybe this is just one of those things like the stagflation of the 70s, a market behavior that reveals just how ignorant we are about economics. We really have no clue how the system works. Or maybe somebody does understand and is getting very rich at everyone else's expense. A good article, although I confess I have trouble following it. I too have been waiting for the other shoe to drop on inflation, not just because I am on a fixed income, with my assets all in cash
(I am vulnerable) but because even for a non-economist, it appears to be long overdue. After all, my Weimar model is breaking down!

No, I have no comments or explanations. I am just as mystified as everyone else. All I know is that inflation is good if you’re in debt, because you don’t have to pay back all the purchasing power you borrowed. I also know that for those who hold real assets, (actual capital, not currency) the purchasing power of the dollar is not quite as important as for those who are totally liquid, like me.

I know the government is acting like it wants to provoke inflation deliberately, (whether that is a good idea or not is debatable, but at least I can see their point of view) but it is not happening. That, at least is logical (not good, but logical). But business is holding on to cash too, not spending it on real assets before it becomes worthless. That makes no sense at all. And no one is borrowing any more, taking advantage of those low interest rates and inflated payback dollars.

Maybe this is just one of those things like the stagflation of the 70s, a market behavior that reveals just how ignorant we are about economics. We really have no clue how the system works.

Or maybe somebody does understand and is getting very rich at everyone else’s expense.

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