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I couldn't get the link to work.

A few points, however:

All arguments above that "it couldn't happen here" could be made for the countries that had hyperinflation. I'm sure they didn't want their oligarchical system to crash and burn but they ruined themselves and their countries by inevitably printing money.

Off the top of my head, I don't recall all Austrians predicting hyperinflation. Their predictions vary and hinge on the political decisions going forward. Some do believe that the hyperinflation scenario will happen. Others call for high rates of inflation if/when the banks lend. Some call for defaults instead. There seems to be a consensus within the Austrian community that A.) There is no strategy for taking the new money out of the system so, at some point, it will enter the economy and effect prices. B.) To stop higher/hyper rates of inflation would result in a heavy hand from government, business bankruptcies, and a loss of revenue for the state when it needs ever greater amounts to pay growing debt levels. Inflation seems the expedient most likely to occur.

"the decision to inflate was a political one, not an economic one"

As if the Fed isn't political? As if this economy isn't run by a political class? Please.

Most Austrians avoid time frames but their arguments for high/hyper inflation seem sound due to the political nature of the phenomenon. Also, people sided with Keynes when Hayek said that we could have higher rates of inflation and an economic downturn at the same time. Hayek didn't name the phenomenon, stagflation, but he was right in predicting its occurrence.

Excellent points, Eric. Thanks for the "thinking food". That's the kind of critical exchange I like. I'm off with Lucky for a longish walk, enough time to ponder your thoughtful input.

Also, I'll see if I can get the link fixed.

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