Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Hyperinflation which is probably unlikely seems to mean different things amongst those who speak of it. If there ever was such a situation what do you think it would look like to the average US citizen?
Specifically what would cost what? and how abundant would goods be available to those who can afford them.
Maybe start with gasoline, the stuff you buy at the supermarket, a pair of sneakers, a new laptop, a cup of coffee. How far can things go? How likely do you think it can happen?
Personally I wouldn’t even try to guess …it really would serve no purpose because not only don’t I know but things not even on the radar yet that always make what we all think is eminent , rarely have things played out the way we think .
They have been calling for hyper inflation since the 1980s when I used to get the gold bug newsletters
Hyperinflation which is probably unlikely seems to mean different things amongst those who speak of it. If there ever was such a situation what do you think it would look like to the average US citizen?
Specifically what would cost what? and how abundant would goods be available to those who can afford them.
Maybe start with gasoline, the stuff you buy at the supermarket, a pair of sneakers, a new laptop, a cup of coffee. How far can things go? How likely do you think it can happen?
I don’t think it’s likely at all. The USD has a position that has never been occupied in the history of the world where it’s currency is the standard which others float against rather than precious metals. The u.s and it’s closest allies, of former British colonies and the ww2 victory zones, account for 95% of foreign exchange reserves. That’s the dollar, pound, euro, yen, Australian dollar, and Canadian dollar. If they’re all working together to inflate and maintain desired ratios, then what is changing? How can the u.s dollar possibly hyper inflate? It’s also used in over half of global trade and makes up 2/3 of global reserves.
In order for something to collapse in the way you’re suggesting, there actually needs to be a threat that can take up that vacuum of power and people willing to do so. While Russia and China and other emerging markets might like to, the other powers I mentioned aren’t so willing to give up their own position of power following the dollar standard.
This isn’t like Venezuela or Zimbabwe where their GDP is smaller than the city of Pittsburgh or a single American company, with no external holdings of their currency, no productive capacity, no key trading partner relationships for exports, and debts held in foreign currencies rather than their own.
Other examples like Germany in the pre ww2 era had issues because of war reparations (treaty of Versailles), reduced production, and they had debts based in foreign countries money…so printing their own money to cover it spells doom.
We can have significant inflation without it being hyperinflation. We can have a 1 time drop in the value of the $ which drives inflation through currency Devaluation or we can have an uptick in sustained compound inflation from increased global demand of commodities. We can have both or none.
I know prices have gone up,you see it in stores,but if you buy what is on sale,it is manageable.
eg I like plums,red and black,it goes for $1.99/lb,but this week it is on sale at Kroger for 67 cents/lb .
Nolan angus chuck roast is $3.97 a lb,stock up if you have a family who are beef eaters !
We all have plenty of clothes and shoes in our closet to last us a lifetime.
Had a friend with family in a South American country that was having what was called hyperinflation. They arranged to get paid daily and then went straight from work to buy whatever was available as soon as they left work. Food prices were often going up 10% a day. One family member worked for a Multinational company and was paid 1/2 their pay in British pounds deposited in a London account. Many stores would not take checks or extend credit.
Inflation generally hurts most a)creditors, b)seniors on fixed income, c)minimum wage workers.
What good is it to have a $15 minimum wage when, after just a year of 10%, that $15 is worth only $13.50, and after 2 yrs, $12.15?
Creditors lose badly because they are being paid back in dollars that are worth less. We all remember what happened in 2008 when credit markets came unhinged.
Likewise for pensioners. A $50,000/yr pension is suddenly worth only $45K after one year, and $40,500 after two years.
I wrote a letter to my Sen. Maria Cantwell back around Feb, when bond yields first started to climb--an indication of inflation expectations. She's a Dem, so supposedly cares about the poor and elderly. She never responded to my letter.
You should write to the Fed,it is transitory.
as for wages,workers make more as they acquire more skills,if they do the same old same old job for 20 years,they will be making minimum wage for the rest of their life.
as for pensioner,SS does give raises ,not much,but SS has always said we canno just rely on SS,so if you have a 401K,invested in stocks,they do increase their dividend.
creditors do not lend money at zero rate,he charges a hefty interest rate !
Had a friend with family in a South American country that was having what was called hyperinflation. They arranged to get paid daily and then went straight from work to buy whatever was available as soon as they left work. Food prices were often going up 10% a day. One family member worked for a Multinational company and was paid 1/2 their pay in British pounds deposited in a London account. Many stores would not take checks or extend credit.
When Angola had high inflation in the 90's due to the civil war, many oil and oil related businesses paid their employees in goods. Cases of Coca Cola, beer, canned goods, etc.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
