In economics, hyperinflation is inflation that is very high or "out of control", a condition in which prices increase rapidly as a currency loses its value.[1] Definitions used by the media vary from a cumulative inflation rate over three years approaching 100% to "inflation exceeding 50% a month." [2] In informal usage the term is often applied to much lower rates. As a rule of thumb, normal inflation is reported per year, but hyperinflation is often reported for much shorter intervals, often per month.
The definition used by most economists is "an inflationary cycle without any tendency toward equilibrium."[citation needed] A vicious circle is created in which more and more inflation is created with each iteration of the cycle. Although there is a great deal of debate about the root causes of hyperinflation, it becomes visible when there is an unchecked increase in the money supply (or drastic debasement of coinage) usually accompanied by a widespread unwillingness to hold the money for more than the time needed to trade it for something tangible to avoid further loss. Hyperinflation is often associated with wars (or their aftermath), economic depressions, and political or social upheavals.
- Hyperinflation according to Wikipedia
In 2011 as the dollar value crashes there is a trickle effect that will affect citizens of the United States of America. Since June 2010, many of the things that affect the consumer goods in the grocery stores have have inflated greatly. Just the commodity of wheat has gone up almost %70.
The every two week pay check that most Americans receive will not go as far if milk is $6 dollars a gallon. Cereal as much as $10 a box. And many other trade items such as iron, rubber, corn, barley, vegetables, and so on. As these things start rapidly increasing in the trade industry they will then trickle down to the restaurants and the grocery stores and these costs will be passed on to American citizens. Yet your pay check will remain the same for many of you and that means it will not go as far in the normal survival purchases, i.e. food, shelter, water, hygiene. As that begins the majority of peoples money will be spent on necessities and less on luxuries.
The B Side To The Truth is this recession no matter what the media is saying is still going on and still getting worse. The difference is from the last major depression in 1929 is that you possibly will still have money in the bank. It just will not be worth anything.
Top investments will include precious metals, agriculture land, and food storage. To protect oneself, you should pay off all debt... including cars and mortgages. Buy food storage first and things of self reliance. Then buy silver. Buy silver on a regular basis. It is still considerably affordable and will appreciate at a higher rate. I do recommend doing your own research on the subject.
Colton - discover your true'ness'
No comments:
Post a Comment