What is the Solution to Hyperinflation?

Some of you may say that hyperinflation is never going to happen in the US. Unfortunately inflation is already here. We can see the “symptoms” of inflation by the rising prices of everything we look at. Inflation itself is actually the printing of money which causes the currency to decrease in value and thus purchasing power. The reason why prices are increasing is not because the items have gone up in value, but it means that the currency is becoming worthless.

Hyperinflation is simply inflation that is very high or even out of control. In 2008-2009 the Zimbabwean government introduced a new Zimbabwean dollar bill note every month to keep up with the hyperinflation. In January 2009 they released a $50 billion bill note which was only enough to buy two loaves of bread. This doesn’t mean that the bread has gone up in value. It means that the Zimbabwean dollar has lost its value and purchasing power. Today, Zimbabweans are forced to buy and sell using gold as the paper money is only worth the paper it’s written on.

Is it possible that the US dollar is going to lose its value just like the Zimbabwean dollar? Very much so. With the official national debt over US$13 trillion and the Federal Reserve’s tendency to print their way out of debt, hyperinflation is inevitable. What is worse, the real national debt is actually not $13 trillion. It is $74 trillion now and your share is $242,000! By 2015, the official US national debt will rise to $19.6 trillion.

So how do we stop it from happening? What is the solution?

Unfortunately, we only have bad news for this question: there is no solution for hyperinflation. If the Federal Reserve keeps printing money, the US dollar will continue to fall in value and purchasing power. But if they stop printing money, the US will default on its debt. The national debt is just too enormous to be paid off by taxation. The interest expenses on the outstanding debt for 2009 alone was $383 billion! The Federal Reserve does not have any better choice to pay off the debt except by printing out more money (besides receiving online donations). If the US chooses to default on its debt, they will completely lose the world’s confidence in the currency and this will also cause hyperinflation.

So whatever the US government is deciding to do, hyperinflation is still happening.

The only thing that the government could do is to cry out, “Mayday!” for every average American to understand that it is time to get into survival mode. Interestingly though, you can hardly hear ‘mayday’ anywhere in the main stream media. Even the school system blindly misleads the children by telling them America is just too strong to economically fail. It is important for you to understand the truth of what is happening with the US economy so that you can take the appropriate actions to keep the purchasing power of your savings and wealth.

The “solution” for the upcoming hyperinflation is only one (if you can call this a solution) by preparing for it to come.

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One Response to “What is the Solution to Hyperinflation?”

  1. 1. Central bank increases interest rates. If higher interest rates does not affect immediatelly the economy (for example, less investment, less consumption of durable goods, lower rates of manufacturing indicators, etc.), then FED has to increase further interest rates. And again and again, untill investment and consumption drop.
    2. Lower Government expenditure
    3. Increase Taxes
    4. FED raise Reserve requirements
    5. FED set limitations and regulations, tougher disclosure requirements for banks, stock brokers and mortgage brokers.

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