2009, the year of runaway inflation?

[summers73]

Originally Posted by TnHilltopper

I certainly understand that with inflation it would be easier to pay off a billion dollar debt when it takes 10 bucks to buy a loaf of bread. That part all makes perfect sense to me and as hard as it might be for folks, in the end I believe it may be the only course.

The sick irony is that the stimulus will likely present the outcome you describe. With all of the de-leveraging and the dollar rising, notice that food prices haven't dropped a bit. Neither have utilities dropped much.

Inflation will hurt the very poor the most, since much of their budget is tied to food + utilities.

[summers73]

Originally Posted by zoomzoom3

Didn't Peter Schiff predict hyperinflation last year? I guess he was a bit off.

I really don't see runaway inflation in 2009, but I do see runaway unemployment.

He did not predict hyperinflation last year nor as a necessary outcome. He has written proof that he predicts a significant drop in the dollar (dollar index to 20 or so), but hyperinflation was not the likelihood, only a possibility.

[scuba steve]

I don't see much runaway inflation for 2009. It's still too early. These days I'm feeling more like we might see deflation for a while this year as people continue to lose jobs, take wage reductions and cut back on spending. There will be too few dollars chasing goods.

But at some point the money from all of these bailouts finally hits the real world, companies and the government start hiring and all of this pent up cash gets released. Then we'll get to the inflation. I think it'll take most of the year to get to that point, though.