Hi cat,
The analysis from the Wall Street Journal, amongst others from the right, predicted it long since - as a consequence of the Fed's QE policies in particular. That hasn't occurred. The reason it hasn't occurred is due to underlying liquidity crisis conditions. Expansion of the money supply is appropriate when the value of existing money is increasing relative to other assets. Conditions may change one day so that the Fed gets to battle inflation, or even hyperinflation. If that happens, it will be because the underlying liquidity crisis is finished, unemployment is much reduced, investment is occurring again etc. At that point, I expect the Fed will raise interest rates. But the argument about hyperinflation between Neo-Keynesians and the Monetarists concerned economic behaviour in the post-crisis period when unemployment was high, demand was much reduced, prices were falling and the economy was experiencing a liquidity issue. And that point is clearly won.
Open-ending the timescale leads towards a new argument in conditions which haven't arrived. A little inflation would be a useful thing. I think both Neo-Keynesians and Monetarists would agree on what to do to prevent inflation running amok. I think hyperinflation only really occurs when the state is perceived as a basket case. I don't see that being the case with the US. Indeed, nervous investors still flock to Treasuries. So if gold price increases express an issue, it clearly points to something other than fear that Uncle Sam cannot pay its debts. Personally, I see gold prices as a far right fear bubble.
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