A few important words about inflation, deflation and fraudulent money.

For some time now I have been backing Prechter's view that deflation must precede hyperinflation.  He gets credit over others because he wrote his book in 2002 called Conquer the Crash which explained it all.  The credit and debt are a much bigger portion of the money supply than the monetary base and so as the law of diminishing returns kicked in (more and more debt leads to smaller and smaller increases in GDP until they finally result in decreases to GDP), eventually it would make no more sense to keep pushing credit.  At that point, the herd would be turned south on the credit front, told that debt is bad, austerity is good, paying off debt or defaulting on debt would become common and the money supply would shrink as a result.  Assuming that production did not change, that is the dictionary definition of deflation: a reduction in the money supply (which consists of the federal reserve's monetary base which they can control plus the public and government debt which they cannot control) relative to goods and services.

Once you understand these truths you also know that the federal reserve is not in charge, that their goal of 2 or 3 % inflation each year is mathematically impossible to go on forever and that the longer the scam goes on, the less in control the fed actually becomes.  Why?  Because when the con was first started in 1913 there was no debt and the fed controlled the entire money supply.  But in order to enrich the elite, the con men convince the people to screw themselves (for they do not have the power to do it without our massive help...) by taking on debt (or not rioting over government doing it in our names).  This rise of debt increases the money supply, albeit temporarily.  But when the debt rises to become 10x or more the size of the monetary base it turns out that the fed only controls 10% of the situation.  At that point, what the fed says is a mere suggestion, not any kind of binding mandate to the markets which are much, much bigger than governments and government con jobs like the fed.  So, like the wizard of Oz, the fed is loud and blustery but some day Dorothy and her cohorts are going to stand up to the bully and the curtain will be pulled back.

• Notice how the wizard in that clip responds to Dorothy's statement that she "melted" the wicked witch of the west.  He says, "ohh, you liquidated her, eh?".  This unusual restatement of her words makes it hysterically obvious that they are talking about financial things, not a real witch.
• Notice also that, once busted, the wizard tries to sell the story that he is not a bad man, he is actually a good man but a bad wizard.  In other words, he is doing all this for the right reasons, to help us but just ultimately not successful.  When the wizard of fed finally collapses, please, do not accept this as an excuse.  
• You know it will be a lie because a very small percentage of the people have the vast majority of the wealth while doing an infinitesimally small portion of the work.  The honest ownership of money requires one to have worked first to attain it.  If you have money that you don't own then you either borrowed it (which means it's not really yours) or you stole it or you convinced someone to give it to you (con job).  I know that the rich did not borrow the money they have.  They earned it by the people borrowing money and them getting rich on the derivative actions of that.   I also know that nobody has directly burgled my or robbed me at gun point.  Yet they have all the money without doing all the work.  So the only remaining choice is that they the con men elite fooled we the people into giving it up willingly (aka a con job) using the fake money supply as their main tool of trickery.
• When the fed gets caught they all need to be tried for treason.  The damage these assholes have done to the world in the name of doing good is simply incalculable.

Having said all that I want to point out the one thing that neither Prechter nor Mish ever say about the money supply relative to inflation and deflation.  They always point to the rise of fall of debt as the main determining factor in the value of the currency.  Under normal times they are both right: reduction in debt causes deflation, period.  However, there is a wildcard which neither of them ever discuss and that is that the dollar has no intrinsic value; it is faith based currency.  If faith is lost in the issuer, the money supply does not have to increase at an exponential rate in order for hyperinflation to set in.  If the people lose faith in the currency they will simply run away from it.  They will chose not to hold it by assigning too much risk to it.  Under these circumstances, hyperinflation is assured no matter what the size of the money supply is.  Heck, people could be defaulting on debt left and right and still see hyperinflation simply because nobody will accept the currency any longer in exchange for their goods and services.

If people want rapid change they should just stop accepting the government issues paper money and demand gold and silver coins for their good and services.   If the people would wake up to this simple truth in unison, the con game would collapse within 30 days.  They cannot enslave us without our permission!  Use of their fake money is consent to their human slavery scam.  This is one of the reasons why I decided years ago to cash my retirement out of any paper holdings and to put it into the three basic money metals: gold, silver, and a bit of hot lead in case someone tries to grab my gold and silver.