I feel the OP is right. I think the critics here are confusing the devastation caused by massive hyper-inflation on 3rd world countries and fear the same on the USA. thus they attack the OP like children in a playground. Honestly, why attack a poster who has an opposing view. Is your EGO so large that only your view deserves posting? I am not so sure that hyperinflation in an economic powerhouse such as the USA is the same as it is for smaller economies. Yes, those with the most and best assets benefit from inflation, they always have and always will. therefore, i rush to aquire more assets. JMHO! KNOW IT ALLS FROM ET......I now order you now.....ATTACK and FLAME AWAY! No need to have a mature debate! Those with a different view will refrain from posting on YOUR board. What was once a great board now has gone to the dogs. That's why many of quality hardly post here anymore, shame on the FLAMERS!
You are apparently a dumb kid with loaded cash from newly rich Chinese parents. Chinese are known for their smarts, you are an exception. Stop embarrassing yourself. 3000% will make any economy complete halt, no body is selling anything. Why would you sell your stuff of any value in the morning if you can wait for 10% higher price in the afternoon?
This is a dangerous assumption. Wages have not kept up with inflation in the US and I suspect if we kick into a hyper-inflationary environment wages will not keep up with the rate of hyper-inflation. Even the FED is concerned about the rate of inflation to ensure it doesn't hit an extreme level. If it ever happened in the US it would destroy the economy.
Hyperinflation according to CFA definitions is any 25% absolute rise in CPI over less than 3 years. 3000% is (1+30)^(1/30)-1=.12127=12.127% Since each year is 12.127% (1+.12127)*(1+.12127)=1.12127^2-1=25.726%. Adding the final year or (1+.12127)^3-1=40.972%. This <b>is a hyperinlfationary environment.</b> I don't believe that hyperinflation is happening in the US ex-food and energy. Adding food and energy is close, but still not at that level. Hyperinflation takes longer than that, adadadog.
Not sure I'm following your math. Isn't it a simple calculation as: (1.3059)^30 = 3001.22, or 30.59% annualized compounded rate kicks 1 buck up to $3,001.22 bucks over 30 years? Still hyper-inflationary per your cite.
And this is exactly what is repeating in the US at this exact moment. The banks are getting first use of newly printed money and buying assets with it. Since the velocity of money is below 1 there is a bottle neck in the banking system, which means banks are using the money to acquire assets that will rise in value during an inflationary environment rather than lending the money to borrowers. This is not necessarily an issue of banks intentionally withholding funds; it's an issue of soft demand on the part of businesses and consumers to borrow. You can't fix a problem that was caused by over-borrowing with more borrowing unless a sufficient amount of time has passed, which is generally measured in decades rather than years. Should a hyper-inflationary environment kick in now your scenario would most likely repeat exactly as you have laid your experience out. The middle class would be completely wiped out and we'd be looking at a country that resembled that of South Africa not so long ago but the pain would be more evenly distributed among racial classes rather than oppressing one particular racial class. The effects would be wide-spread devastation.
(1+3000)^(1/30)-1=.3059, that's true, but 3,000 is not 3000%, 30 is, as 30*100=3,000%, 3,000*100=300,000% which is wrong.
My mistake. It's been a while since I've done TVM calc's but after a 2 min refresher I still disagree with your calculations. Correct me if you believe this is incorrect. i = (FV/PV)^(1/n) -1 i = ((30/1)^(1/30)) -1 i = (30 ^ .0333) -1 i = 1.1199 -1 i = 12%, and therefore, not hyper-inflationary per your cite? If you disagree then we'll just agree to disagree to prevent the thread to turning into a debate on TVM calc's rather than the OP's topic.