DO YOU SEE IT COMING? $1 = $0.01 Hyperinflation by Lynette Zang

Blog Apr 12, 2018

This is the first in a four-part series on what typically happens during a hyperinflationary event.

Part 1 â€“ Whatâ€™s Happening to YOUR Money

Fiat Money, we work for it, save it, and use it as a tool of barter. We also use it as a gauge; have I made or lost money on my investment. Our perception is that it has value, which is why we accept it. But in reality, the US Treasury defines it as a â€œnon-interest-bearing debt.â€

Your own experience proves that debt money loses value over time through inflation. That means that the longer you hold it, the less value it has. If you save money from your current work for retirement in the future, while it retains its â€œnominalâ€ value, it loses its â€œpurchasing powerâ€ value on itâ€™s inevitable march toward zero. This forces savers to take risks in effort to make up for this loss. Hello Wall street banks.

In the end, fiat money always dies in a blaze of hyperinflation as the cost (in terms of currency) for goods explodes. On average, 80% of the population ends up in abject poverty. So, while most suffer, a few benefit.

To quote John Maynard Keynes, the father of Keynesian economics, the foundation of our current fiat money system.

â€œBy a continuing process ofÂ inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens. By this method they not only confiscate, but they confiscate arbitrarily; and, while the process impoverishes many, it actually enriches some.â€

â€œThe process engages all the hidden forces of economic law on the side of destruction and does it in a manner whichÂ not one man in a millionÂ is able to diagnose.â€

Can you see that inflation is a planned tool of default on fiat money for governments and central banks? I say this because, without your knowledge, you are getting repaid less on that â€œdollarâ€ the longer you hold it. Was that what you agreed to?

A key difference between inflation and hyperinflation is the speed of the default, therefore the visibility of the default. A 2% target, which is what many countries central banker push toward, is a slow, almost invisible, default. But the recent case of Venezuelaâ€™s hyperinflation at 2,444,054.81% is VERY visible. When would you like to prepare?

In the Bank of Canadaâ€™s 2017 research paper on sovereign debt defaults they report that, â€œthe frequency of such events may be on the rise again and may be more closely correlated with rising public debt burdens than at any time since the 1930â€™s.â€ Personally, I think today is the best day to convert that fiat money into good money, while we still have the choice.