What happens in a society with inflation.....

Each big inflation -- whether the early 1920s in Germany, or the Korean and Vietnam wars in the US -- starts with a passive expansion of the quantity of money. This sits inert for a surprisingly long time. Asset prices may go up, but latent price inflation is disguised. The effect is much like lighter fuel on a camp fire before the match is struck.
People’s willingness to hold money can change suddenly for a "psychological and spontaneous reason", causing a spike in the velocity of money. It can occur at lightning speed, over a few weeks…

Here is an example of what happened in the hyperinflation of Weimar Germany....

"Velocity took an almost right-angle turn upward in the summer of 1922," said Mr. O Parsson. Reichsbank officials were baffled. They could not fathom why the German people had started to behave differently almost two years after the bank had already boosted the money supply. He contends that public patience snapped abruptly once people lost trust and began to "smell a government rat".

Near civil war between town and country was a pervasive feature of this break-down in social order. Large mobs of half-starved and vindictive townsmen descended on villages to seize food from farmers accused of hoarding…
Grand pianos became a currency of sorts as pauperized members of the civil service elites traded the symbols of their old status for a sack of potatoes and a side of bacon. There was a harrowing moment when middle-class families first started to understand that its gilt-edged securities and War Loan would never recover. Irreversible ruin lay ahead. Elderly couples gassed themselves in their apartments…
Great numbers of people failed to see it coming. "My relations and friends were stupid. They didn’t understand what inflation meant. Our solicitors were no better. My mother’s bank manager gave her appalling advice," said one well-connected woman.”


Morgan Stanley has recently stated openly that the spending of the US will overwhelm monetary policy of the fed, and the US Treasury bond market will rocket "shortly" from around 0 per cent to 5.5.