I've said before that the Quantity Theory of Money ("QToM") is hogwash. Inflation, deflation, hyperinflation, stagflation, and any other -flation - none of these depend upon the quantity of money available in an economy. From what I can tell, the QToM was invented do convince labor that increasing their wages did not improve their lot.
Credit drives everything. When new credit is tight and old loans get called in, assets are sold below the current market price, giving the illusion that money is worth more. Actually credit-inflated assets are worth less.
When a central bank is privately held and subject to the accounting rules of the private sector, the balance sheet drives everything. If a central bank's liabilities should ever exceed its assets and the central bank's creditors gets wind of that fact, the central bank's liabilities will get called in, and it will sell off its assets to appease the secured creditors first. The holders of central bank notes, e.g. Federal Reserve notes, are unsecured creditors who will be the last to know. But once they know, the value of the central bank notes rapidly goes to zero. When a bank is not a central bank, this phenomenon is called a bank run. The elite have falsely labeled this phenomenon as "hyperinflation" and blamed it on excessive "money-printing" to mask the fact that a private central bank sometimes has to die so its owners may live.
If the Fed is purposefully buying toxic assets to insulate its owners from liabilities. the Fed is becoming a "bad bank" that will eventually be recognized as insolvent, rendering its bank notes valueless. When this happens, all the Federal Reserve notes that the banks are sitting on as "excess reserves" will be released to give credence to the lie that "money-printing" caused the collapse of the dollar, but don't be fooled. The Fed's insolvency will have preceded the release of those reserves by a substantial period of time.
When a central bank is privately owned, what appears to be hyperinflation is actually the fallout from a bank run that ended in the central bank's insolvency.
