Hyperinflation Definition: It’s Elementary

hyperinflation definition

Hyperinflation definition

Updated Dec 2022

The penguins masquerading as experts on Hyperinflation are full of it, for they fail to understand a specific factor, the “velocity of money”. Next time they start with their load of bull, ask them if they even know what the velocity of money represents.

So, what is Hyperinflation: According to Investopedia, Hyperinflation is defined as:
Hyperinflation is a term to describe rapid, excessive, and out-of-control general price increases in an economy. While inflation measures the pace of rising prices for goods and services, Hyperinflation is rapidly rising inflation, typically measuring more than 50% per month.

Hyperinflation is not in play. It also depends on the angle or period one plucks the data from to determine if inflation is a real threat.
The true definition of inflation is an increase in the money supply. It has now been bastardised as an increase in the price of goods. Price surges are a symptom of the disease and not the condition. Let’s look at many historical charts in line with this distorted view of inflation.


Historical Price of Milk

Historical Price of Milk

Historical Price of Bread

Historical Price of Bread

Source: https://www.in2013dollars.com/Bread/price-inflation


Historical price of eggs

Historical price of eggs
Source: https://www.in2013dollars.com/Eggs/price-inflation


Historical Price of Bacon

historical price of beacon

It looks like the price of Bacon is trending upward. However, when one digs deeper, this is what one finds.

bacon history pork belly prices
Source https://www.southernliving.com/meat/bacon/bacon-history-pork-belly-prices

The current average price for a pound of Bacon is 5.82. The above table indicates that Bacon was far more expensive in 1947 than it is today


Historical Price of Carrots

Historical Price of Carrots

Source: https://www.ons.gov.uk/economy/inflationandpriceindices/timeseries/czne/mm23

Yes, the above chart is based on the prices of carrots in the UK, but it matters not, for the trend is roughly the same in the USA.


Historical Price of Beef and Veal

historical price of beef and veal
Source: https://www.in2013dollars.com/


Consumer price indexes for various medias
Source: https://www.bls.gov/

Suppose you remove the price of cable and satellite television (another manipulated market). In that case, the cost of everything else in the above chart has been trending downwards.

historical cost of computer memory and storage

Source: https://hblok.net/blog/posts/2017/12/17/historical-cost-of-computer-memory-and-storage-4/

We could go on and but we will stop with this chart. Over the past two months, we provided further evidence that the hyperinflation story is the work of an empty mind. This article summarises the other factors that we have discussed in previous updates. https://bit.ly/3aIst8l

The velocity of M2 Money Stock

velocity of M2 money stock

All that matters, in the end, is the velocity of money; currently, it is at a multi-year low. This suggests that all the price spikes we are witnessing are man-made. Housing prices are rising because of supply and demand. The demand is outstripping the supply. Oil and natural gas prices spiked because the hardcore brain-dead greenies decided to exclude natural gas and nuclear from their all-green mantra.

The current supply chain bottleneck is also man-made. A subscriber submitted an excellent article that provides an in-depth look into this misdeed. The report is posted under the news section towards the end of this update. In almost every instance, the price surge had nothing to do with inflation. Manipulation instead of inflation, in most cases, is what’s taking place.

Given the decline in the velocity of money, the worst-case scenario is that we will witness momentary price spikes in different assets from time to time before they revert to the mean. Most so-called inflation experts don’t even know what the velocity of money means or how crucial it is to determining long-term inflation trends. Hence most of these inflation experts are nothing but glorified jackasses.

References on the Definition of Hyperinflation

These articles discuss the implications of hyperinflation:

  1. “Hyperinflation Definition and Causes” by Investopedia: https://www.investopedia.com/terms/h/hyperinflation.asp
  2. “What is Hyperinflation?” by The Balance: https://www.thebalance.com/what-is-hyperinflation-3306127
  3. “Hyperinflation Explained” by Forbes: https://www.forbes.com/advisor/investing/hyperinflation-explained/
  4. “Understanding Hyperinflation” by the International Monetary Fund (IMF): https://www.imf.org/external/pubs/ft/fandd/basics/hyper.htm
  5. “The Dangers of Hyperinflation” by The Balance: https://www.thebalance.com/hyperinflation-causes-effects-examples-3306128

Other Articles of Interest

Delving Deeper: Exploring the Question – What Is Inflation?

What is Inflation? Unveiling Effects and Strategies for Mastery

 Decoding Inflation: Unraveling the Complex Effects Aug 25, 2023 Inflation, which refers to the general increase in prices and fall ...
Investor Sentiment Data Manipulation

Investor Sentiment Data Manipulation: Unveiling Intriguing Insights

Unveiling the Impact: Exploring Investor Sentiment Data Manipulation Aug 12, 2023 The significant manipulation of sentiment data has serious long-term ...
"Stock Buybacks Unmasked: Unraveling the Adverse Consequences

Stock Buybacks: Exploring Their Detrimental Effects

Unveiling the Downsides: Dissecting the Negative Impacts of Stock Buybacks Updated Aug 8 2023 We will delve into history to ...
Is US Dollar soaring?

US Dollar Rally: Is it Ready to Rumble?

US Dollar Rally: Riding the Wave of Resurgence Updated Aug 02, 2023 The weekly chart (below) shows a positive divergence ...
Learn How to Trade Options: Unlock the Secrets of Financial Freedom!

Unlock the Secrets: Learn How to Trade Options like a Pro!

Learn How to Trade Options: A Step-by-Step Guide to Maximizing Profits July 2023 Before we delve into the effective strategies ...
Psychological Manipulation Techniques; The art of brainwashing

Psychological Manipulation Techniques: Directed Perception

Deceptive Tactics: Psychological Manipulation Techniques Updated June 18, 2023  Everything you process is based on Perception & perception is based ...
Tomorrow's Stock Market Prediction: silly and dumb idea

Tomorrow’s Stock Market Prediction: A Silly Pursuit?

Tomorrow's Stock Market Prediction: A Silly Endeavor or Precise Insight? July 26, 2023 Before delving into the "Tomorrow's Stock Market ...
When is the Best Time to Buy Stocks: when the market crashes

When is the Best Time to Buy Stocks: Key Insights

When is the Best Time to Buy Stocks: Essential Tips July 22, 2023 The optimal moment to invest in stocks ...
The Stock Market Forecast for Next 3 months: its better than you think

Stock Market Forecast For Next 3 months: Buckle Up

Unravelling the Secrets of Stock Market Success Updated August 1,  2023 Before attempting to predict the stock market's direction for ...
Unveiling Mass Psychology: The Essential Element for Sustainable Triumph

Mass Psychology & Financial Success: An Overlooked Connection

An Introduction to Mass Psychology: Understanding Group Behavior? Updated July 15, 2023 Mass psychology is a branch of social psychology ...
Stock Market Crash 2023: Plans and course of action

Stock Market Crash 2023: Navigating the Turbulence Ahead

Stock Market Crash 2023: Navigating the Risks and Opportunities July 10, 2023 The MOAB  (mother of all buys) signal has ...
The Level Of Investment In Markets Often Indicates the Financial Pulse

The Level Of Investment In Markets Indicates Fear Or Joy

Editor: Vladimir Bajic | Tactical Investor The level of investment in markets often indicates Panic or? Updated July 2023 The ...
right side of trend

Winning with Nasdaq 100 ETF: Riding the Right Side of the Trend

Unlocking the Potential of the Nasdaq 100 ETF: A Comprehensive Guide July 7, 2023 It is crucial to bear in ...
Sentiment investing

Investor Sentiment Survey Defies Stock Market Crash Outlook

 Investor Sentiment Survey Challenges Stock Market Crash Predictions Updated July 2023 Let's take a fascinating journey through history to explore ...
Riding the Waves: Exploring the Dynamics of Stock Market Trend Analysis

Stock Market Trend Analysis Decoded: Unveiling the Insights

Decoding Stock Market Trend Analysis: Unveiling the Insights Updated July 5, 2023 Disorganized data analysis was previously discussed in the ...