Originally posted by Metal BrainThere isn't a strict level, but during recognized hyperinflations annual inflation rates have often been in the tens of thousands. Others, like the German post-WWI hyperinflation, were much worse. According to [url=http://en.wikipedia.org/wiki/Hyperinflation]wiki[/url] the inflation rate got as high as 3,250,000% per month!
How high does inflation have to be to considered hyperinflation?
The 1970's in the US were an example of stagflation which is when you have high inflation (at least by US standards) and also high unemployment (also by US standards). Before that time, stagflation was believed by many to be impossible based of off the Phillips Curve that said that unemployment and inflation had an inverse relationship.
Originally posted by telerionI'll resist calling the coming inflation hyper. Stagflation would be an acceptable term to describe what I expect to happen.
There isn't a strict level, but during recognized hyperinflations annual inflation rates have often been in the tens of thousands. Others, like the German post-WWI hyperinflation, were much worse. According to [url=http://en.wikipedia.org/wiki/Hyperinflation]wiki[/url] the inflation rate got as high as 3,250,000% per month!
The 1970's in the US were ...[text shortened]... off the Phillips Curve that said that unemployment and inflation had an inverse relationship.
I was looking into bank panics and I ran across the bank panic of 1819 and saw some similar problems to what we have today.
http://americanhistory.suite101.com/article.cfm/the_panic_of_1819
There is also talk of replacing the US dollar with SDRs as the world reserve currency. I think it was mentioned in the Money Masters.
http://www.reuters.com/article/reutersEdge/idUSTRE52M5UZ20090323
Given your economic background I thought you might find these sites of interest.
Originally posted by Metal Brainftp://ftp.bls.gov/pub/special.requests/cpi/cpiai.txt
No. how did you come to that conclusion?
Volatility in inflation was much higher. By the way, take a look at what happened to relative gold prices recently. If the volatility of gold prices is much higher than CPI, then certainly one would expect that adopting gold would increase volatility, not decrease it.
Originally posted by PalynkaI never said I wanted the gold standard back.
ftp://ftp.bls.gov/pub/special.requests/cpi/cpiai.txt
Volatility in inflation was much higher. By the way, take a look at what happened to relative gold prices recently. If the volatility of gold prices is much higher than CPI, then certainly one would expect that adopting gold would increase volatility, not decrease it.
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Originally posted by Metal BrainSo what do you want?
I never said I wanted the gold standard back.
There is no gold standard in this country anymore. Coins lose value to inflation, gold does not. Do not listen to people who think coins made of nickel, copper and zinc are the same as gold and silver. Fractional reserve banking with no gold standard is a horrible way to run an economic system.
How horrible is it, if it's the best so far?
Originally posted by PalynkaDid you read the Ron Paul article?
So what do you want?
There is no gold standard in this country anymore. Coins lose value to inflation, gold does not. Do not listen to people who think coins made of nickel, copper and zinc are the same as gold and silver. Fractional reserve banking [b]with no gold standard is a horrible way to run an economic system.
How horrible is it, if it's the best so far?[/b]
Originally posted by PalynkaCould you provide a link with the percentage of CPI?
ftp://ftp.bls.gov/pub/special.requests/cpi/cpiai.txt
Volatility in inflation was much higher. By the way, take a look at what happened to relative gold prices recently. If the volatility of gold prices is much higher than CPI, then certainly one would expect that adopting gold would increase volatility, not decrease it.
Originally posted by Metal BrainWhat exactly do you want? If it's CPI inflation in percentage terms then you have the last two columns of my first link. For monthly ones, you'll have to calculate them yourself, but it's easy to see by eye-balling that volatility was much higher then.
I didn't mean precious metals. The link you provided before was not calculated in percentage terms. I am not big on number crunching if it is not necessary.
Originally posted by PalynkaThere was 215.3% inflation in 2008???
What exactly do you want? If it's CPI inflation in percentage terms then you have the last two columns of my first link. For monthly ones, you'll have to calculate them yourself, but it's easy to see by eye-balling that volatility was much higher then.
I support raising reserve requirements of banks. It would help reduce bank failures and help reduce monetary inflation by credit.
I also think a limited form of free banking might work. Sweden had some success in that area in the past. I don't think the federal reserve should have a monopoly in the issuance of bank notes. If it was competitive it would provide incentive to keep inflation under control or nobody would use those bank's bank notes.
Here is something I copied from the GCN live website. This would be a great first step.
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HR 1207 Co-sponsorship Skyrockets: Companion Bill in Senate
Ron Paul's "Federal Reserve Transparency Act" to audit the Federal Reserve is now up to 39 co-sponsors the House, and an identical companion bill, S604, has been introduced in the Senate. Here are the House co-sponsors:
Young (R-AK), McClintock (R-CA), Woolsey (D-CA), Rohrabacher (R-CA), Castle (R-DE), Stearns (R-FL), Grayson (D-FL), Buchanan (R-FL), Posey (R-FL), Kingston (R-GA), Price (R-GA), Broun (R-GA), Abercrombie (D-HI), Burton (R-IN), Fleming (R-LA), Alexander (R-LA), Bartlett (R-MD), McCotter (R-MI), Bachmann (R-MN), Peterson (D-MN), Akin (R-MO), Taylor (D-MS), Rehberg (R-MT), Jones (R-NC), Foxx (R-NC), Garrett (R-NJ), Heller (R-NV), DeFazio (D-OR), Platts (R-PA), Duncan (R-TN), Wamp (R-TN), Blackburn (R-TN), Poe (R-TX), Paul (R-TX), Marchant (R-TX), Burgess (R-TX), Chaffetz (R-UT), Petri (R-WI), Kagen (D-WI), Lummis (R-WY)
32 Republicans and 7 Democrats so far. Urge your Representative to co-sponsor