Hyperinflation 2013 – The Real Hockey Stick

Will we see hyperinflation in 2013? While the sky may be falling, it’s hard to predict the timing of when it will collapse on our heads.

–Update: Read our latest post – Global Hyperinflation–

We can’t know, but we can look for signs that things are getting worse. Hyperinflations start off as ordinary inflation and then accelerate. Governments that refuse to cut spending have to print money in order to keep up. The additional money adds more inflation causing the acceleration.

A couple months ago when I wrote about my fear of hyperinflation, I included this graph:

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Unlike global warming, this is the real hockey stick. Now here’s the updated graph, current within the past week or so:

It hasn’t gotten better. We’re headed into an inflationary 2013 with the Fed printing money full steam ahead. This is one key sign to watch next year. You can check it yourself anytime here: St. Louis Fed M1 Graph.

Another thing to watch in 2013 is federal fiscal policy. I’m not referring to the so-called fiscal cliff, which is a sideshow. This picture from Mike Scully gives the general idea:

Deficits shot up at the end of the Bush administration and continuing through the Obama years.


-From US Spending

The government projects that the deficit will be less in 2012 and come back below $1 trillion in 2013, but that is not likely. There are no plans whatsoever to cut spending. Medicare and Social Security spending can’t help but increase. Federal projections depend on the fantasy that revenue will increase dramatically, 40% from 2011 to 2014.

If revenue stays flat and spending doesn’t increase, the deficit will be $500 billion higher than projected. That could be optimistic. Even with the fiscal cliff revenue will not increase significantly, spending will still increase, and the economy could get worse which would cause revenue to drop. Unable and unwilling to cut spending, the federal government will resort to printing more money.

So watch the fiscal numbers, both revenue and spending. The administration might release such news on a Friday when people are thinking about the weekend, or when a big story is dominating the news cycle. And watch that hockey stick for 2013. Keep your eyes open, your gas tank full, and your pantry stocked.

One Comment

  1. i could see hyperinflation happening if all this money printing was making it’s way into people’s hands, but the banks are not lending, even with excellent credit you can not get a loan, no what is going to happen is the fed will crash our economy and then come swooping in with all them inflated cash reserves they have and scoop up what little hard assets remain for just pennies on the dollar. the process is happening right now, with our government selling off our infastructure at fire sale prices because we can’t afford to fix our roads and bridges. the tide has turned in the us. we will be unseated as the only super power in the world because we have too much debt. i saw it happen with russia. i can remember in south america russian kgb agents were coming to our embassies and spilling their guts just to get a plane ticket home because russia was bankrupt and the ruble had crashed and these agents had no money. so when the fed prints so much that the us dollar is devalued to zero worth or less what is going to happen to all are troops overseas like japan, germany, etc. of course these countries will confiscate all of are wepons and military assets on these bases, but the bigger problem will be, how to get these millions of troops stationed around the world back home when our econemy is wrecked, and our government will be so broke that they will not have enough valueable currency left to buy a pot to piss in or a window to throw it out of. now on top of that here comes the imf or the world bank wanting their loans paid in full. since our currency is backed by the taxpayer, which means people are the asset on the loans, what is going to happen to us? i can tell you life will not be like it is now. every one will have to go beg to the lord or nobles to get anything to eat and these so called lords and nobles can have you killed on a whim, why they can even take your wives, daughters, sons away for their sick or sexual amusement. we will be reduced to serf class which means slave to the nobles and we will not be allowed to own anything, and our existence will only be by the so called good graces of our lords and masters. this is what these bankers and the powers that be have in store for us.

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