John wrote:World food prices once again rose to fresh historic highs, for the eigth consecutive month. Prices rose 2.2% in one month from January to February, according to the UN Food and Agriculture Organization (FAO).
Of particular importance were the prices of cereals, which rose 3.7% in one month.
I understand this is not all prices but still, note that 5% per month or 80% per year is the cutoff I like for hyperinflation.
The "billion prices project" uses online prices to make real time price indexes. The one for the USA has gone up almost 1% per month the last 2 months.http://bpp.mit.edu/daily-price-indexes/?country=USA
From 1914 to 1933 the Fed circulated 2.5 paper dollars for every 1 dollar worth of gold they held. This caused land, bond, and stock bubbles in the 1920s. But from 1929 to 1933 as people and countries turned in paper dollars for gold it was like they were removing this inflationary factor of 2.5 and prices went down. When the Fed stopped redeeming paper for gold the deflation stopped.
We do not have this deflationary thing happening this time. At some point the deflationists will have to admit that is not our problem. Best if they figure this out before we get to 5% per month.http://howfiatdies.blogspot.com/2010/11 ... ndard.html