Wendell B. | wendellbulbaai

Hyperinflation, Currency killer about to hit the US dollar

Dec 7th 2010 at 1:35 PM

Most of us know that "inflation" is when prices of goods rise and it takes more money to buy the same items.It's a side effect of an increased amount of a currency in circulation, which causes the currency to lose its purchasing power.

How does this happen? Whenever a currency is being produced without the necessary back up of a product it will result in to much money on the market that will cause an imbalance between the supply and demand. To much money and less good to purchase will lead prices of goods to go skyrocketing .The higher the level, the greater the inflation that finally could spin out of control and become "Hyperinflation".

Our history has known over 30 countries that experienced hyper-inflation and saw their currency become worthless. Just to mention some of the worse cases we could point to Germany -1923,Greece-1944, Hungary 1946,Tawain 1949.Yugoslavia 1994 and Zimbabwe 2008.

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5 comments
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Mar 6th 2011 at 9:43 PM by TimRR
Very good article
   
Jan 16th 2011 at 7:07 PM by bjfoot
Very good article... We are in an inflated state now and I would guess... hyper-inflated but the govt keeps fudging the numbers, so they don't have to step up with what we already know. Scarry times, but being ready for it is where we need to be!
   
Dec 22nd 2010 at 11:57 AM by flconversation
Yes - you are right in what you are saying. Years ago the money in circulation in a country needed to have the equivalence in gold. Therefore the stamping of banknotes was controlled. Nowadays this has no value any longer .......
   
Dec 7th 2010 at 11:20 PM by svaha31
Good time of day! "Think before you invest money and do not forget to think about when they have already invested". F. Doyle
   
Dec 7th 2010 at 1:55 PM by judyhwright
Welcome to IMFaceplate. You will meet lots of people here from all over the world. We are all more alike than different. If you enjoy articles, would love to have your comments on my articles. Thanks for sharing.
   

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