If any of you read an excellent article a while ago about the causes of hyperinflation and the difference between hyper, and "ordinary" inflation...(sorry, I couldn't find it)...the author mentioned a typical scenario which would lead to hyperinflation in the US.

He surmised that the $US would fall dangerously (like this week...) and the government would step in and buy US treasuries to support the US$ (like Japan just did to stop the Yen's rise...).

He figured that the market action would have exactly the opposite affect, because other countries, upon seeing US government buying the useless US Tresuries to provide market support, would take the opportunity to try to reduce US$ holdings of their Treasury Bond bloated reserves.

Now we see that just exactly that has happened as Sinclair points out that several countries have been sellers of Treasuries at record levels...interesting timing.

http://jsmineset.com/2010/09/16/central-banks-dump-57-billion-of-us-agency-debt/

hyper-inflation around the corner?

lotus petals,

gildage