Make No Mistake About It — The Threat of Hyperinflation Is Already Here, Knocking At America’s Front Door
Are you prepared for the worst economic event in US history?
Forget about inflation. Hyperinflation will be far worse. And it’s already here, standing on the stoop of America. Knocking at our front door.
And he’s waiting outside. Patiently.
Waiting for us to let him in.
And inside our house, we find his little brother, Mr. Inflation.
How’d he get inside?
Simple. President Trump let him in the back.
Back in 2021.
So far, Mr. Inflation has proven to be an unruly guest. Wreaking havoc on the economy. Driving up the cost of living.
And get this—President Biden can’t seem to kick him out.
America Isn’t Ready For the Economic Repercussions
Frankly, most Americans aren’t ready for either one of them.
Inflation or hyperinflation.
You see, inflation is when the prices of goods and services rise steadily over time. It’s a normal part of an economy. Sometimes those prices jump up significantly.
And even sometimes they retreat to deflationary levels. Which makes for a happier, more robust economy.
However, when inflation grows dramatically, at record speeds, it paves the way for hyperinflation. But what is hyperinflation?
Think of it this way…
Hyperinflation is a lot like inflation but on steroids.
Prices go up so fast.
People can’t keep up with them.
And the economy nosedives into a tailspin.
It happened in Germany after World War I. Argentina saw it in the 1980s. And it very well could happen in the United States too.
To understand how dangerous and dire our future could be, we first need to understand how inflation works and how hyperinflation devastates an entire country.
Why Inflation Happens
Inflation is the increase in prices in a country’s economy.
This happens when the amount of money (i.e., a country’s national fiat) in circulation is more than the number of goods and services available in the economy. When this happens, the value of each unit of currency decreases.
Things like the government printing more money, an increase in demand for certain goods, or an overburdened supply chain can cause inflation.
The US is currently sitting at an 8.3% year-over-year inflation rate.
In 2021, the inflation rate was 7%.
In just two short years, the American economy’s inflation rate has increased by a staggering 15.3%.
Under the leadership of both Barack Obama and Donald Trump, America saw some of the lowest consecutive inflation rates in its long-standing history.
But on the heels of the COVID-19 outbreak and President Joe Biden taking up the Oval Office, things have certainly changed. And they’ve changed for the worse.
The governments’ overspending, money printing, and inflationary policies have set the stage for a perfect storm.
One that will see the purchasing power of the US dollar decimated.
Why Hyperinflation Happens
Hyperinflation is a type of inflation that is characterized by high, rapid, and out-of-control price increases.
This happens when the prices of goods and services rise so quickly that the money becomes worthless.
Typically, a 50% month-over-month increase in the inflation rate is seen as the benchmark for when the economy enters the danger zone. A period of hyperinflation.
Hyperinflation can be caused by things like war or a natural disaster. Or when the government can’t raise the national interest rates fast enough for bank lending.
In hyperinflationary periods, people can’t keep up with the rising prices. They lose faith in the currency. And they hoard supplies instead of using cash.
Lucas Masllorens recounts, in his Houston Chronicle Op-Ed piece, what it was like in 1980s Argentina when the inflation rate peaked at 300%.
“Grocery stores in times of hyperinflation are not unlike grocery stores during hurricane advisories. Aisles are pretty empty, lines are long, and people are frustrated. You have to be faster than the guy with the price tag machine, otherwise you’ll end up paying 20 percent extra or more.”
When public hysteria sets in, the economy grinds to a halt. Businesses close their doors. People lose their jobs. And the country descends into chaos.
“In an unstable country like mine, that means shortages and, sadly inevitable, public riots in the most vulnerable sectors of society,” Lucas adds.
The Good News For America
The good news for Americans is that the US economy has never experienced hyperinflation.
The closest America got to hyperinflation was in June 1920 when it hit 23%.
But that was over a century ago. Under different leadership. And at a different time.
The America of today differs greatly from the America of yesterday. The economy is in a much different place, too.
For a decade after the recession, the US economy dramatically improved. We went from a country without many jobs to one of abundance. Unemployment rates fell to historic lows.
Wages increased.
Businesses thrived.
And the stock market reached new highs.
We even saw Bitcoin and cryptocurrencies carve out a name for themselves in the global economy.
But now, with the COVID-19 outbreak and President Biden in office, everything has changed. The future is uncertain. And the US economy is teetering on the brink of collapse.
Hyperinflation — whether or not we want it — may come sooner than we think.
The Bad News For America
The bad news for Americans is that the economy is hanging on the edge of total economic collapse.
The US government is trillions of dollars in debt. And they’ve printed money at an alarming rate.
At the start of 2020, $4 trillion was printed. At the end of 2021, they had printed over $20 trillion.
In those two years, starting January 2020 through December 2021, the US Federal Reserve printed over 80% of all the money ever produced in America’s 245-year history.
To put it into perspective, it means America had only used 20% of the total money supply ever printed during the previous 243 years.
To me, it’s utterly mind-blowing how much money the US government could print in such a brief span of time. Who will hold America’s politicians accountable for the next economic depression?
The government’s gross abuse of power isn’t solely a Republican or a Democrat problem, either.
It’s an American problem.
A big problem that taxpayers will feel the brunt of in the coming years.
Yes — it may have started in President Trump’s final year. But let’s not forget that it continued well into President Biden’s first term.
I guess you could say both presidents turned a blind eye while the Fed ramped up the money printing machines into overdrive.
The Final Verdict
The writing is on the wall.
Every day, it appears America is traveling further down the old beaten path, heading toward a 1923 Weimar Germany scenario.
It most certainly won’t get to those epic proportions.
At least, that’s what I pray for.
But one thing is clear: hyperinflation may be right around the corner for America, and it may get here sooner than anyone believes.
If hyperinflation happens, are you ready for it?
Here are seven things you can do to prepare:
- Stockpile necessary supplies now — water, toilet paper, canned foods, etc.
- If you’ve invested in the stock market, get out while you can.
- If you hold cryptocurrencies in your portfolio, liquidate them. (Bitcoin may be your only safe bet — but it’s still not guaranteed).
- Buy as much gold and silver as you can. More gold than silver if you can.
- And although it sounds counterintuitive, keep some cash — in small denominations — on hand. You’ll need it at first when the shit hits the fan.
- Brush up and learn how to barter for goods and services. This is what humans did before money got invented, so obviously, it’s in our DNA.
And most importantly — pray for America and what is yet to come.
Do you agree or disagree? Do you think the US economy could ever enter into the danger zone of hyperinflation? Why or why not?