Will the U.S. successfully re-create the Weimar republic Hyper-inflation economic model?

The Fed expects inflation to moderate later this year and next year, but the outlook remains "highly uncertain".

www.businessweek.com...

Talk about hedging your bets.

So which is it, are people losing all faith in the federal government (Hyper-inflation) or are people struggling to pay thier bills (Deflation)?

If we are going to successfully recreate the weimar economic model we will expect to see a total devaluation in the currency within a matter of months.

[URL=http://g.imageshack.us/img232/weimarhyperinflationyw5.gif/1/]

[edit on 17-9-2008 by In nothing we trust]

Doesn't look that way at present with all the credit institutions imploding.

Credit crunch threat to Christmas
The Press Association

Ho ho ho merry recession...

We are in uncharted waters here because the US dollar has been the world's reserve currency for decades. There is no precidence for what we are seeing...weimar Germany owed money, but the mark was not the world's reseve currency. Argentina hyperinflated, but its debts were in dollars, not its own currency.

I would say this makes hyperinflation slightly better for America than it would be otherwise, although the prestige of the dollar will be a thing of the past when its all over.