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I guess my question would be is hyperinflation (or I think extremely high inflation) the inevitable consequence of our past policy decision?
My question is what policy? Monetary? Energy? Tax? This whole thread is a mixed bag of issues. The real problem is government policy as a whole.
For Monetary, from 2008-2016 (roughly), the Fed Funds rate was at near zero. Economic growth was low and so was inflation. From 2016-2019, the Fed regularly raised the rate about 25 basis points about every quarter up to about 2.5%. Economic growth was healthy, and we saw moderate inflation. From 2019 until the pandemic collapse of everything, the Fed began lowering the rate 25 basis points to curtail inflation and also stimulate the economy a little more going into the election. Now, we are back at basically zero. Keeping rates at zero allows the continued out of control spending without raising the U.S. interest payments too much. It kicks the can down the road. However, in it's current state, the monetary policy isn't contributing to inflation at the moment.
For Energy, what I consider to be terrible policy of trying to drastically cut fossil fuel consumption for energy sources that rely on the weather without a reliable backup is a fool's errand. The near term effect of the executive orders put into effect in January has caused transportation costs to increase a lot very quickly. The affects the price of transportation for all goods and thus their price. Cue inflation rising.
For Tax, the government (both sides) has shown and unquenching thirst to spend spend spend, and the current administration is trying to tax tax tax. This latest Yellen scheme to tax billionaires on unrealized gains is a rounding error related to spending and in my opinion not serious, but intended to divide as politicians have been pitting the rich against the poor for centuries. We aren't taxing our way out of a $37 Trillion debt or whatever it is.
As was said above, hyperinflation per Investopedia is 50% per month or more. Our current CPI YoY growth as of October was 5.4%, and 4% ex -Food & Energy. That is NEAR 30 year records. So, this isn't even the worst we have had in the last 30 years. To be jumping to hyperinflation is "hyper-perbole".
Hyperinflation is Venezuela in 2018 was 800%. We are at 5%sh. Venezuela is also a third world country with one resource to export, oil. That took a dive back in 2009 after the runup, and the world quite consuming as much petroleum, and their poorly run government/economic system of socialism collapsed.
We have a diverse economy and a stable government, regardless of which side is in charge. So, while you can make a case on paper or a spreadsheet for hyperinflation, there would have to be some drastic, major, world changing events in a very short period of time for that kind of thing to happen to the U.S.
