Fox news ” Twitter boss reports likelyhood of hyperinflation

Bill Masen - October 23, 2021

News

Something to definately be monitoring fairly closely.

https://www.foxbusiness.com/economy/twitter-ceo-jack-dorsey-hyperinflation-warning

Twitter founder Jack Dorsey has issued a cryptic warning that “hyperinflation” will “change everything.”

In typical Dorsey style, the social media CEO tweeted out his comment, saying that “it will happen in the US soon, and so the world.” 

 Hyperinflation is typically very high and accelerated inflation. Researchers have documented 57 cases of hyperinflation as of 2018, with the first recorded episode occurring between 1795 and 1796 in post-revolutionary France, according to The Economist.

Some economists and writers have looked at possible hyperinflation in the U.S. as early as March 2021 when the economy started to get back on track after an artificially depressed year due to lockdowns and immense restrictions during the coronavirus pandemic – policies that officials started reversing as vaccines became more available. 

The term raises some grim images, with Venezuela the most recent example and Zimbabwe perhaps one of the most famous examples of hyperinflation. 

“This is meme economics,” Bloomberg Businessweek wrote earlier this year. 

“Fear of inflation – if not outright hyperinflation – helps explain the meteoric rise of Bitcoin,” the article argued. “It’s behind distrust of the Fed. And it feeds congressional opposition to President Biden’s $1.9 trillion pandemic relief plan.”

Indeed, Republicans have warned of inflation since the start of the summer when gas prices first started to tick upward and prices followed shortly after: consumer prices rose 5% over the 12 months between June 2020 and June 2021, The Associated Press reported. 

This marked the largest one-year increase since 2008, and possibly the biggest since 1992 – excluding more volatile items such as food and energy. 

Rep. Jim Banks, R-Ind., said his constituents have “seen the higher prices on gas in particular, but also groceries and the cost to keep their businesses running.” Such voters, he said, “know, intuitively, that this is due to Democrats’ economic agenda and big spending plans.”

Prices have continued to trend upwards as an historic global shipping backlog delays the transport goods and services across the board, slowly driving up prices for everything from toilet paper to toys. 

Gas prices in some have hit around $4.00 a gallon, such as in California, Hawaii and Nevada, according to AAA. Premium in these states is almost at $5 a gallon. 

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If I had an extra $1000, would it be better to stick it into physical supplies like food, water, and medical supplies or into stocks and a retirement account with hyperinflation? 

 

Agreed, only last week we increased our domestic supplies with an extra $300 worth of foods, domestic cleaning and hygiene products, I’ll watch this article AND the trouble bewing in Turkey on europes southern flank ( Erdogan has just booted out the US and 9 other western ambassadors)  and if it starts moving the wrong way I’ll spend another $300 to $500 on long term supplies to insulate my family from the hyper inflation.  

I think cash is pretty pointless in hyperinflation scenarios.

 

Good morning Isabel,

Per the article, if you need additional food, water or med supplies – presuming they are even available – that $1K bill will purchase much less than today.

Stocks are now gambling. In discussion, along with the social infrastructure rehab are views to “means test” retirement accounts. This translates to if you have other financial resources for retirement, the mentioned retirement account just might not be available to you.

 

I will look into increasing my budget for physical goods and build up my supplies here more than I currently have. Thank you for bringing this to my attention, even if we don’t go down the road of hyperinflation, it will be good to be more secure in that way.

 

If INFLATION rates are HIGHER than the INTEREST rates in your bank account you are losing money.  So convert it into consumables like food because they only ever go up in price.

 

I strongly disagree that hyperinflation is likely.  To point  to Venezuela or Zimbabwe & the United States as being in the same realm is ignoring reality.  Here  It’s simply a mismatch between supply & demand in a country that is the biggest engine of the global economy.  The other two are examples of gross mismanagement and/or corruption stretching over years in countries that were dependent (V) on one product to support the economy.

 

Good evening Greg,

The US is definitely NOT just a mismatch between supply and demand.

It’s realistic enough for the proposed $5 trillion spending plan to mirror President Johnson’s combination of the Great Society and unfunded Vietnam War. It was LBJ who introduced permanent deficit financing. We know the results.

The size of the US economy is less relevant than how it is financed. Higher US taxes and more social welfare will not work – and the examples from Europe show how it won’t work.

The US has low labor participation and this surely qualifies as gross mismanagement. More generous family leave will not help the economy. Italy gave 22 weeks of maternity leave at 80% of previous earnings, France: 16 weeks at 90%. Spain 16 weeks at 100%. Aforesaid reduced the reason to hire workers.

Cradle to grave welfare states are financed by the middle class and America’s middle class is already stressed out. 

Now add the administration’s “green energy” program. This program is a large user of fossel fuels.  Of course this program is not corruption – nor a supply/demand mismatch.  It is expensive and not financed via self-liquidating accounts.

A major reason for the southern California ocean ports backlog is that these ports operate at several fewer hours than Chinese ports. It’s NOT supply/demand but rather a generous concession to the maritime unions.

I also went through President Carter’s wear a warm sweater and lower the heat.

 

Good afternoon  Bob,

I’m having real difficulty in following the examples that you give, in part because I am unable to verify the figures you cite & you seem to be comparing “apples to oranges” at best.

#1  The economic redevelopment plan proposed by the Biden administration at most was quoted at 3.5T, but has been reduced to somewhere south of 2T ( and still hasn’t been enacted into law).  In any event, these dollars are, in part, being put into restoring the infrastructure in the US & not going to fund a war.  

#2  The labor participation rate is not controlled by the US government, nor has the now-lapsed unemployment payments been shown to have incentivized people to stay off the job rolls.  Secondly, the proposed family leave is only four (4) weeks.  I honestly don’t see the correlation between a few weeks of leave and people not re-entering the job force.

#3  I haven’t seen any data that a green energy program will utilize fossil fuels – the two seem totally at odds.  The current fossil fuel economy is HEAVILY subsidized by our tax dollars – leaving the environment in worse shape by the day.  The longer we wait to switch to renewable sources, the worse off we will be in terms of pollution, public health and increasing climate change.

#4 I’ll give you the inefficiencies at the ports, we have allowed the unions to dictate a lack of changes there for far too long.  I do wonder how much of that stuff being held up is a true necessity and how much is, frankly, crap.  How many video games, new shirts, Halloween costumes, (fill in the blank) do people really NEED vs. what is just crap that people want.  

Here in America we have gotten so used to buying junk 24/7 that when it’s not available it is suddenly a crisis!  

 

Good morning Greg,

The examples I gave are the classics: unfunded programs like the Great Society, Vietnam War, …

Most figures cannot be verified.  There are different proposals and different accounting and finance methods used in what is presented to the public.

Of course fossel fuels are heavily subsidized. What big programs are not ?!  As bloated with public funds as they are, the oil subsidies are far less than the medical care subsidies.

The mentioned video games, new shirts, .. are the trade offs for eg Boeing to operate in China, Exxon (via their ESSO Eastern sub) in Indonesia, etc.

Distilling all this down for prepper use, IMO,

Definitely stockpile long term type foods, load up the first aid kit, consumerables for the car, eg oil, look for sales and get a couple of cases.  Ditto re repair materials anticipated for use in and around house.

Again IMO, huge inflation is pending and besides stockpiling anticipated shortages and high costs of goods like foods, med stuff, it’s surely worth taking an EMT type of course, a machinery type of course, … I’d recommend checking out the area’s community colleges. Many of my colleagues took the car mechanics (principles of automotive mechanics) course.

To display my humilidity re all this I’m writing about, I do hope I am wrong.

Having lived through LBJ’s Great Society, Vietnam War, President Carter’s wear a warm sweater, … several others – both political parties …

Closing with a combination foot note / concluding paragraph: Blrssed be the AA battery companies with the new 10 year shelf life expectancy.