Posted Jun 1, 2014 by Martin Armstrong
I have answered this question many times that the definition of hyperinflation as thrown around being 26% based upon accounting standards does NOT match the historical examples that will end society pointing to Germany. The USA had inflation at 20% into 1980 and we currently have asset inflation in the 26%+ area. A Phase Transition is the doubling.
If you want to pretend that 26% inflation will destroy society as we know it, sorry, there is not a single example of such an event. Using that definition and then trying to merge that with events like Germ in the 1920s is bogus and seriously distorted evidence.
HYPERINFLATION to me is not survivable. That is the collapse of government a restart of everything. We have seen more than 26% inflation in many South American countries and they survived.
This is not about selling nonsense to fleece you out of money. This is the bottom-line hard facts. High rates of inflation even reaching 50% have not resulted in the collapse of society. That has been seen in both France and England not to mention Spain. What killed Spain was its serial defaults until nobody would lend them a dime.
So if you want to talk about high rates of inflation as separate and distinct from HYPERINFLATION that destroys governments and society, that is fine. We have many different types. Do not use 26% and then claim it will have the same effect as trillions of per cent. That is just being dishonest.