[aMorePerfectUnion]

I do not expect hyperinflation. No major nation has ever had it.

Hyperinflation is caused by a lack of confidence in the currency.

Deflation is now a far larger threat.

[central_va]

No major nation has ever had it.

So you don't think Germany is a "major" nation?

[BfloGuy]

Hyperinflation is caused by a lack of confidence in the currency.

True.

Deflation is now a far larger threat.

I dont' agree with that, but deflation is not a threat unless it's caused by government action, i.e., the Fed yanking away the cheap credit. Normally occurring deflation is a boon -- it means the currency's purchasing power is increasing.

[Mr. Jeeves]

Hyperinflation is caused by a lack of confidence in the currency.

Deflation is now a far larger threat.

Thanks - I was beginning to think sanity was entirely absent from this thread.

Hyperinflation is a political phenomenon - not an economic one. It has nothing to do with the increasing price of bacon. It happens when a Robert Mugabe takes over a country. Not that Obama doesn't have similar inclinations, but there are still many, many barriers between him and the realization of his petty tyrannical aspirations.

Deflation due to technological advances is still the global macroeconomic trend in place, despite price increases in some categories due to political meddling and wacky environmental policies.

Don't believe it? How much has your salary inflated lately? When they come to you one day and offer you twice as much just to stay on, you can start worrying about the onset of hyperinflation.