Hyperinflation: Think It Can't Happen Here?

Hyperinflation: Think It Can't Happen Here?

How much are you willing to BET hyper-inflation can't happen in the U.S.?

100 TRILLION Dollar Note

We are already in the presidential election cycle for 2016. Yuck, I know!

Please take my advice and listen carefully how each candidate proposes to reduce the national debt and return the U.S. to a balanced budget.

By the time the next President is elected, the U.S. will have accumulated over $20 trillion dollars in debt (NOT counting unfunded payments to Social Security, federal pensions, Medicare, and more totaling another $100 trillion...)

How much is 20 trillion? 20 trillion is 20,000,000  million dollars. If a stack of $1,000 bills 12 inches tall equaled 1 million dollars, it would take a stack of $1,000 bills 1,000,000 feet high to equal ONE trillion dollars. That's over 173 MILES high!!!

Greece, Portugal, Spain, and Italy have been bankrupt for several years. Russia is teetering on insolvency, as is Venezuela and Argentina. The U.S. economy is in terrible trouble, but it STINKS LESS than other economies around the world. That is what is saving us (the U.S.) - so far!

Here are some historical comparisons of the result of over-inflating the economy and currency:

1. In 2008, the socialist dictatorship of Zimbabwe, Robert Mugabe, created an annual inflation rate of 11,250,000% resulting in currency that was basically worthless. At independence in 1980, 1 Zimbabwean dollar was worth approximately $1.25 in U.S. dollars. By mid-2008, one U.S. dollar was worth 688 trillion Zimbabwean dollars. The government was forced to print a $100 Trillion Dollar note - see above - that had the value 14 U.S. CENTS!!!.

2. In 2007, Turkey had been suffering from chronic inflation for decades. In 1980, one U.S. dollar was worth 90 Turkish lira. By 2004, a U.S. dollar was worth 1.3 million Turkish lira. As a result, in 2007 the government simply declared a “revaluation” of the Turkish lira. One million Turkish lira would henceforth be worth only 1 lira.

3. In 2005, Romania devalued its currency: In 1998, the highest printed denomination in Romania was 100,000 lei. By 2005, it began printing 1 million lei notes. The Romanian government then devalued its currency, declaring that 1 new lei would be worth 10,000 old lei.

4. Argentina devalued its currency previously back in 2001: Overspending by the Argentine government resulted in massive inflation in the 1980s and 90s. By 1992, one new peso was worth 100 billion pre-1983 pesos. Had you stuffed cash in your mattress during one of Argentina’s many recessions, not trusting their shaky banks, you would have ended up with nothing but waste paper.


5. Russia faced a collapsed economy previously back in 1999: Following the collapse of the Soviet Union, the new Russia saw annual inflation of between 2,500% and 8,500% a year. The value of the ruble declined from 40 rubles to the dollar in 1991 to 30,000 rubles to the dollar by 1999.

Of course, that kind of hyperinflation ONLY occurs in other, backward countries! It could NEVER happen in the good, old U. S. of A

How much are you willing to BET? Try EVERYTHING!