Rapid Inflation

Inflation is the rise in prices for goods and services, measured in percentage terms. As inflation goes up, every dollar buys fewer goods and services. Rapid inflation is the acceleration of prices to the point where it’s moving so fast that the people can’t adjust quick enough to the rise in goods and services. Hyperinflation is an extreme version of rapid inflation, where the nation’s monetary system is essentially failing and people lose complete faith in their country’s currency. An example of hyperinflation is Germany in 1923, where, in just a few months, prices rose 2,500%.


I know it sounds crazy, but it’s true. Investors are paying the U.S. Treasury to hold their money in exchange for participation in expected rapid inflation. Treasury Inflation Protected Securities, more commonly known as TIPS, are bonds backed by the…

Readers of Profit Confidential have made their voices heard on the topic of rapid inflation. In our recent survey, over 2,000 of our readers said they believe we are experiencing rapid inflation closer to 10%, while the official government Consumer…

The growth in manufacturing in the U.S. has been flat. Despite this, the Empire State Manufacturing Survey noted that input costs—oil and commodity prices for manufacturers—has risen steadily over the last few months, with February’s high level not seen since…

There is rapid inflation in the system, dear reader, but let’s not speak too loudly about it.  I’ll keep this note to a whisper as we turn our attention to the just-released Institute of Supply Management’s factor index. The institute’s…

There’s no doubt about it. The stock market had a fantastic January! But here’s the bad news: companies in the S&P 500 that released their earnings reports in January (with 49% of S&P 500 companies reporting so far), have had…

I have never seen anything like this… In its most recent Federal Open Market Committee meeting, which concluded yesterday, the Federal Reserve announced that it would extend its near-zero interest rates policy until at least the end of 2014—further down…

Here we go…piling more debt on an already huge debt burden. Another U.S. debt ceiling hike has been formally requested of Congress. While last fall’s soap opera on increasing the official U.S. debt ceiling still lingers in investors’ minds, last…

What will happen to the U.S. housing market in 2012? As we close out 2011, we will have experienced the fifth consecutive year that home prices in the U.S. have declined. According to the popular S&P/Case-Shiller Index,U.S. home prices are…

The U.S. Labor Department reported yesterday that the Producer Price Index (a measure of wholesale prices) rose by 0.3% in November, an annualized rate of 3.6%. The Labor Department also reported that Import Prices rose 0.7% in November, an annualized…

— by Michael Lombardi, CFP, MBA What a difference three months can make. In that time period, the new Administration in Washington has done the following: --- Created trillion-dollar annual deficits --- Doubled (or maybe even tripled) the money supply…