Wednesday, January 4, 2012

Hyper inflation is a temporary phenomena

It offers the fat-left-tailed possibility of unforeseen – delevering - or the fat-right-tailed possibility of central bank inflationary expansion

Read more: http://www.businessinsider.com/bill-gross-financial-markets-are-imploding-2012-1#ixzz1iWmH5mtL

Bill Gross trying to estimate how much hyperinflation before the next crash. it is almost impossible to estimate, hyperinflation will spurt, then the economies rush from it back into long term delever. How often has hyperinflation lasted more than a year or two? High inflation sometimes goes on for five years. They never last. This time around I think the path to extended delevering is much shorter, no one wants the inflationary path.

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