Comments on: Inflation in America – What will hyperinflation look like?

By: Stude

Stude — Thu, 17 Nov 2011 21:15:30 +0000

Why do so many people get it wrong about Keynes? All he showed was a work around when greedy Capitalists endangered Capitalism. .It is not a joke that people who misuse Keynes policies are called Keynesians. Keynes wanted money kept sound through taxation. Debauch the currency and collapse Civilisation..

Keynes on fiat currency:

“There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose.”

By: Tommy

Tommy — Thu, 17 Nov 2011 19:44:30 +0000

@ Mike

Here’s the link to the photo you want. Right click then hit print picture.

http://moneytipcentral.com/wp-content/uploads/2009/03/zimbabwe-inflation.jpg

By: David

David — Mon, 05 Sep 2011 16:54:10 +0000

Insightful article. Thanks for the tips on how to overcome and prepare for hyperinflation.

It is interesting that in all of the pictures showing people with lots of worthless paper money, they all seem to be well-dressed, and the kids are playing with the money. It doesn’t exactly portray the devastation that comes with hyperinflation.

I would definitely get out of paper assets now and into gold and silver.

By: Rachel

Rachel — Tue, 02 Aug 2011 19:13:34 +0000

Why doesn’t anyone put their name as author on this article? Makes it incredibly difficult to cite because it detracts from the whole professional aspect of making an in depth works cited :/

By: John

John — Tue, 19 Jul 2011 04:42:55 +0000

Only one thing. With hyperinflation hold on to your loans but make sure your on a fixed interest rate.

That 1,000,000 loan will later only be used to by potatoes

By: Steven Rowlandson

Steven Rowlandson — Sat, 02 Jul 2011 19:02:16 +0000

On the topic of real estate I think fully owned real estate may have some practical value as a space to live and produce food but may be not as an investment vehical during high or hyper inflation.
The reason being that peoples pay will not rise or rise at the same rate as property prices or the rate of inflation plus there is the question of is financing a mortgage even possible. Any lender with brain stem is going to want a interest rate that exceeds the rate of inflation or its a bad deal for lenders.
So that just leaves buyers with a situation where they offer a 100% down payment and nothing a month and get a roof over their head or no deal. Vendors will want immediate payment in full so that they can use the money before it loses more value. So hyper inflation and deflation would be bad for the real estate market and it is only between the two extremes that long term financing is viable.
Just my thoughts FWIW.

By: Tom

Tom — Mon, 30 May 2011 19:27:24 +0000

Ed,
The govenment has been printing money, devaluing the value of your existing fiat currency for years. This is the reasons that we came off of the gold standard. This is also the reason that silver was removed from coinage in 1965 (Dimes, Quarters, Halfs, and Dollars were 90% silver through 1964. Half Dollars were 40% silver through 1970). This is also the reason that copper was removed from pennies in 1982. Currently nickels have around 6 cents worth of nickel in them. How long do you think it will be before the metallic composition of the nickle changes?

Years of the govenrment running budget deficites, devaluing the dollar (Quanitative easing), and promising social programs (Social Security, Medicard, Medicade, Obamacare) that the country cannot afford to pay for have put us in this position. Both political parties are to blame. If you want to see the effects of the reckless printing of money, just look at the price of houses, land, cars, gas, food, etc. compared to the prices of these items 20 or 30 years ago. Price Inflation = Dollar Devaluation. Hyperinflation in the US will occur when the world looses its faith dollar as the world’s reserve currency.

By: Matt

Matt — Wed, 25 May 2011 18:20:38 +0000

I’ve tried to answer your questions in three parts:

Keynesian policies cause bubbles (the roaring 20′s) and busts (the great depression).

Keynesian policies come at the expense of the free market. Instead of the market deciding interest rates the central bank set the recent mortgage rates extremely low for a very long time; which caused a housing bubble (and subsequent collapse).

The government pours money into the economy through low interest rates (debt), bail out money (like TARP), and bond manipulation (they call it quantitative easing). Printing money is what most people understand and visualize so it has become a common phrase to describe all centralized Keynesian actions.

By: Ed

Ed — Tue, 24 May 2011 04:09:58 +0000

Your statement that the Depression (where massive deflation occurred) along with your statements that Keynesian policies caused the Depression and that they’ll cause hyperinflation, makes no sense whatsoever

And since when did Keynesians become anti-free-market?

Also, why do you think the government will recklessly just start printing money all the sudden?

By: Mete Kavruk

Mete Kavruk — Thu, 05 May 2011 12:13:37 +0000

Hi friends here. I am a Turkish and know this problem very good. Our fathers and mothers lived this but survived by converting money to goods. People who is poor nowadays are the ones who did not invest their money right in those years although they had very good business.