“We are flirting with hyperinflation”

Great read from Rob at Research Affiliates in the recent issue of Fundamentals:

“If we finish 2011 with 3% core inflation, 4–5% total inflation, and 3% three-year total inflation, the Fed’s ammunition will be tapped out. If the Fed runs the printing presses in the face of 6–10% true inflation, we are flirting with hyperinflation.”