...is strictly a monetary event. A crisis of confidence event.

Inflation: the government lowers rates & gives out paper$ and helps people to spend more, borrow more, spend more...which causes rising prices...and paper$ accumulation. This can go on for many years quite happily...until the debt level or accumulation level reaches discomfort.

Hyper-inflation: the people, banks, central banks have lots of "valuable paper" which they accumulate feeling that they are very wealthy. Soon, everyone has so much paper, they think "I don't want anymore of this stuff - It's too high a percent of my portfolio"...Then they (banks) all try to spend (get rid of it) it at once...there is a crisis of confidence.

The paper drops in value and real things (Au, Ag) appear to be more expensive.

It works for me anyways.

lotus petals,

gildage