After recently pondering my thoughts about hyperinflation and completing some more research into the direct effects of what constitutes the environment to create inflation, It has come to my attention that there can be a distinct delay between currency printing and hyperinflation.
The easiest way to explain this is, the Reserve banks around the world are all printing currency to deal with the mess that is unfolding with the virus, a full shutdown of all unnecessary business and gatherings has taken effect, quickly bringing the economy and velocity of currency to stand still. Creating and sustaining deflation.
Reserve banks are propping up high debt big businesses, share markets, bonds, governments, banks, small businesses and hell... even the everyday person who no longer has an income due to the shutdown. Effectively buying them out with money which doesn't exist, to buy time.
THE PROBLEM:- This majority of this amount of direct currency expansion is being stored. Not spent.
For this monetary experiment to work, it requires currency to MOVE ie velocity of currency. They need a functioning economy for the currency printing to be effective for everyone. Problem is... this virus is shutting down this ability.
This is a major problem, while the Reserve Banks are printing money to try and beat the game with quantity of currency... they cannot address the real issue which is velocity of money. No amount of currency given to you will make you spend in this environment.
So whats the end game? What comes next?
I believe they will massively over expand the amount of currency required to save the system, due to no velocity.
Once this virus and economy (hopefully) recovers velocity picks back up... The over abundance of printed currency will rapidly spread across countries and even the whole world. Creating a false security... before massive hyperinflation of goods and services!
Currency will be worth less because there is more in the system.
Simple supply and demand.
Bringing the end to the confidence in the dollar system... HOPEFULLY just in time for a new system to take over. People will be wiser, people will be aware, they will be very careful of who they believe and who they trust with their funds and lively-hood.
This is a very messy outcome, which can take some time if no system is prepared and ready to be executed.
Hopefully all this happens without social unrest and severe economic damage.
Sadly, history is not on our side.
All the best.