|
| Lack of sovereign currency, gauranteed convertability of currency to another or a PM, or gov't debt denominated in someone elses currency. If we start issuing US fedral debt denominated in Euros, Candos, Yaun, etc. then look out.
Sovereign currencies can't get to hyperinflation any other way. What happend in Weimar & Zimbabwe was gov't debt denominated in a currency other than their own. Weimar because of reperations to the winners from WWI (paid in Sterling & $), Zimbabwe from 4th worlditis & trade deficits with gov't debt denominated in others currency.
Similar reasoning the Euro won't last/work, it's not a sovereign, it's member states shouldn't be able to run budget deficits. Therefore, the problem with the PIIGS.
I'm not saying we can't have inflation, though I'm a doubter that we will, it's that we can't have hyperinflation. | |
|
Interview with John Williams on the Coming Economic Collaspe
