Not just the US.

does it mean that an average american has negative equity? Counting all billionires, homeless, middle class with it's million between school loans, credit cards and mortgage? If yes then how negative it is?

Of course it does. In fact, I envy the penniless indigents on the street, they're several thousand dollars ahead of me, even in their abject poverty. I might have a roof over my head and two cars in the driveway, but I assure you they are to be paid with tomorrow's wages. I hope the day after can wait a while longer.

Of course, this was all used as fuel by Adolf Hitler. I think we will see similar political revolutions when hyperinflation and the economic mess starts. I worry about Europe - we've been murdering each other for thousands of years, don't see it should stop now.

Murder is in our nature. Read Becoming Evil by James Waller. It is quite a journey into the heart of darkness.

http://www.theoildrum.com/node/2660/201028

"If you study the German Hyperinflation, January 1918 through November 1923, one stock index share went from 126 to 23,680,000 million in nominal Reichsmarks ... however, if you measure the German stock market during this period in US Dollars (at that time backed in gold) ... the gain of 187,936 million times in Reichsmarks amounted to a 60% loss in US dollars."

Looks like a bone crushing thud is in the mix...

This post got me really thinking about wealth and assets. I can only think of a few things that have actual value... arable land, alternative energy sources, raw building materials, tools, food, etc. How many rich people have these things? The rich have huge energy-consuming houses, huge energy-consuming cars, commercial real estate, stocks, foreign holdings, etc. Take energy out of the equation and they have nothing. Unfortunately for the vast swath of Americans they are screwed either way. The Titanic metaphor becomes more and more apt by the day. All that money won't save you.

I've heard twice from people this week, unprompted, that "at least inflation means my debt will be less of a problem". Coincidence, scary, or has some talk-show pundit been putting the idea out there recently?

Theoretically that's true, but broke is broke. Yet, certainly more than the Weimar days, we are a nation with millions of people in negative figures who might not be totally opposed to a reset. While I may be in the debtor class, I realize that collapse is bad for reasons beyond financial.

However, we won't be dealing with wheelbarrows. All digital.

I believe that the money that Germany was printing and releasing inside of the country was purely fiat, not backed by debt or precious metals. If that is the case, then the comparison to present day US is apples and oranges. Also, at that time, Germany had no way of exporting this inflation.

US currency is backed by debt? Whose? Anything else to offer?


No more inflation export for US either. Even Americans are running away from USD. Noone wants this paper anymore.

Lowem,

This means that anyone seriously concerned about the appearance of a hyperinflation in the USA can place their money in stocks thereby reducing their exposure to inflation. 60% is quite a hit, but it's far better than 0%.

In fact, anyone managing to salvage 60% of their wealth in 1923 Germany was among the very fortunate few. However, that hardship was during an unfortunate era everyone knew would eventually pass.

The one to come will be permanent. We here all know this.

Mr. and Mrs. JQ Public may not yet know this, but soon they will.

So the US prints 2 pieces of paper instead of one. The value of both will fall to zero.