Hyperinflation
I have to be honest - hyperinflation scares me.
My limited understanding of hyperinflation is that it is when inflation goes wild. Rather than going up a mild 2 or 3% points per year, it is going up 15% per day.
Historically hyperinflation happens when governments lose control of their spending and their self. Hyperinflation happened just before World War 2 in the Wymar republic. Some say that it may have led to WW2. If that is or is not true is debatable. Hyperinflation happened there mostly because of the war reparations that Germany had to pay.
However in our modern society strangely enough there have been two situations both of which can easily be classified as Hyperinflation: Zimbabwe and slightly more recently in Venezuela.
In both situations - Hyperinflation has made consumers money worthless. Savings that may have taken fifty or sixty years to build up are suddenly and almost over night not worth enough to buy a loaf of bread. This is very sad. More than the sadness though is the danger.
What happens if hyperinflation happens where you live? What is to stop hyperinflation in your country? Since our money now a days is merely backed by the full faith of our governments - what happens when no one trusts our government. I think that some of this may sadly explain the rise of crypto currencies...
Very Sad.
My limited understanding of hyperinflation is that it is when inflation goes wild. Rather than going up a mild 2 or 3% points per year, it is going up 15% per day.
Historically hyperinflation happens when governments lose control of their spending and their self. Hyperinflation happened just before World War 2 in the Wymar republic. Some say that it may have led to WW2. If that is or is not true is debatable. Hyperinflation happened there mostly because of the war reparations that Germany had to pay.
However in our modern society strangely enough there have been two situations both of which can easily be classified as Hyperinflation: Zimbabwe and slightly more recently in Venezuela.
In both situations - Hyperinflation has made consumers money worthless. Savings that may have taken fifty or sixty years to build up are suddenly and almost over night not worth enough to buy a loaf of bread. This is very sad. More than the sadness though is the danger.
What happens if hyperinflation happens where you live? What is to stop hyperinflation in your country? Since our money now a days is merely backed by the full faith of our governments - what happens when no one trusts our government. I think that some of this may sadly explain the rise of crypto currencies...
Very Sad.
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