It won’t last long.
We are experiencing deflation at the moment. The Obamunists are planning actions that will soon turn this into a hyperinflationary mess.
Just as in the Great Depression, the money supply has crashed.
During the Great Depression, the money supply contracted by some 30%.
Right now it has done at least the same. How is it possible?
Credit markets have evaporated. Doubt that credit is money? Look in your wallet. That plastic did not exist during the last Depression. A lot of it is gone forever.
You cannot fix systemically broken credit markets, you need to replace that component of the money supply with real cash in a situation like this. The result will be hyperinflationary.
That will be just to plug the holes. Obama will desperately continue to try to spend his way to prosperity a la FDR. Won’t work.
Hopefully the dope will not last as long as FDR. An adoring press and public gave that buffoon 12 years of fumbling with misguided attempts to ‘cure’ the Great Depression and not once threw the bum out of office. His efforts were disastrous and why he should rightfully be known as the architect of the Great Depression.
You cannot fix systemically broken credit markets, you need to replace that component of the money supply with real cash in a situation like this. The result will be hyperinflationary.
Assuming your scenario is correct, and I'm not disputing that it is, just how is "replacing that component of the money supply" even inflationary, let alone hyperinflationary? By your own terms, it's replacing "money" removed from circulation, not in addition to current "money" in circulation.