[anigbrowl]

Oh, come now. What you say is correct and this is a big problem for the US, even more so for Europe, but that's a fiscal matter, not a monetary one. Indeed, if your hyperinflation scenario were to come true, one of the silver linings would be that we'd inflate away much of our external debt.

But really, we both know the Fed is tinkering with monetary policy in response to the recent financial crisis, not in response to the upcoming demographic one. Unless you want to go all tinfoil hat and say they provoked the former in order to deal with the latter by stealth :)

I feel you're shifting the goalposts a little with this post, although it is an interesting issue in its own right.