Is the USA economy overdue for a period of hyperinflation?

Question

The FED is overproducing dollars to pay for the war and the record breaking trade and budget deficits. Energy, food and interest costs are rising for consumers, but most Americans are not getting pay raises necessary to keep up with the mounting costs. The world at large is funding the majority of our national debt and recently has started to look for alternatives to the American dollar which is being devalued almost on a daily basis. While many countries are producing more and growing, the USA seems to be consuming more and declining. Are we witnessing the death throes of the American economy?

Answer 1

Hyperinflation may be america's only "solution" to the debt problem. A few years of dragging garbage bags full of cash to buy bread may erase the debt (and your cash savings as well, not so much your property or even stocks).

In the aftermath the country will recover but only to live by its own means, meaning no more massive free shipments of oil and chinese products.

Answer 2

Yes and No. The USA has a habit, historically, of getting into trouble and then finding a way out of it. Ever since the founding of the United States, Americans have faced crisis after crisis and somehow have managed to come out of it. So, in this case, where the question is resources vs. the population, the people who analyze market indicators and who are invested in the various industries at risk can see directly what the problems are and what the possible solutions are. As long as they follow through with the solutions, The rest of us in "consumer land" will never know that their was a problem, right?

Answer 3

Well, I don't believe hyper inflation just happens in cycles. It is caused by government meddling and printing money. I though we were headed for high inflation this year but I've changed my mind.

I watch comodity prices of hard assets like metals. If you look at the prices of metals, Gold, Steel, Aluminum and Nickel you'll see those prices have been falling over the last few months. So in my view inflation is under control for now.

Lastly on manufacturing. We are losing manufacturing jobs but I think we are losing more to automation than being outsourced to third world countries. We still manufacture 25% of the goods produced in the world. We are doing that with fewer and fewer people. The same thing happened in Agriculture during the last century. One American George Jetson, making $20.00/hr, pushing buttons at Spacely Sprockets can produce more sprockets per day than 32 Third world guys with hammers and chisels making $2.00/day working at the Flintstone foundry.

Answer 4

Hyperinflation is a result of mismanagement of cash. The only way inflation can exist is too much money is produced. I think the powers that be know well enough to avoid that fiasco.

Answer 5

I think so.