Permanent Article Link Here:
http://news.goldseek.com/GoldSeek/1377529589.php
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It is a frightening idea to grasp that the United States could be closer to an epidemic of hyperinflation than most people would like to think. As the article title described it, the amount of debt that the country has accumulated could travel to the sun and back 83 times. That is what trillions upon trillions of dollars would look like, and it's the reality of a very real potential crisis that the nation may face in just a few years. In the past, when other countries have faced economic situations, hyperinflation was many times a direct result from massive debts and severely depleted economies. The United States however, is in a bit of a different situation than most. When countries in the past faced hyperinflation, they were fighting through decimated economies. The United States still remains one of the world's leading powers in most fields, including economics. For this world superpower to fall to hyperinflation, the international implications could be extreme.
One of the biggest results of hyperinflation to the US Dollar, would include its decline in international markets. It would no longer remain as the standard in many foreign markets, and would rock trade and dozens of international markets that use the US Dollar besides the United States. Additionally, the stock market would likely face a potential crash that could make the Great Depression of the 1930's look like practically nothing. The United States would inevitably fall as the world's dominant superpower, and would have to start fresh. Hyperinflation is a very important issue, especially when it is dealing with one of the world's most powerful countries. For a country as strong as the United States to potentially face this crisis, it should be a wake up call for the rest of the world to make sure that hyperinflation does not slowly creep into their nations as well.
Thursday, September 19, 2013
Zimbabwe after hyperinflation: In dollars they trust- Economist.com
Permanent Article Link Here:
http://www.economist.com/news/finance-and-economics/21576665-grubby-greenbacks-dear-credit-full-shops-and-empty-factories-dollars-they
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Upon reading the article and learning about the effects that hyperinflation has taken on Zimbabwe, it is clear as to why this issue is so very relevant and significant. Having inflation rise an alarming 231 million percent is absolutely astonishing, and a feat that would have been perceived as impossible until its actual occurrence. The fact that the depleted economy of the country allowed t\he inflation rate to rise to such astronomical proportions is shocking, and the thought of the effects this had on the nation's citizens also raises concern. To put just how little the money was worth during this hyperinflation epidemic, it is safe to say that if a person went to go buy some groceries at a local market, they would need millions, perhaps billions of their dollars just to buy some food to get buy for their family to meet ends meet.
Although Zimbabwe is a developing country, and is not by any means towards the top of the world in terms of events having international implications, this story still remains relevant within the economic standards of the world. It shows another example of how a country that "just prints more money" will not raise its nation's monetary values, and will in fact, set the country on a path towards inevitable inflation and potential economic collapse. Now, the country will need to completely rebuild its monetary system, its banking processes, and construct guidelines that will prevent hyperinflation from infiltrating into the country any more.
http://www.economist.com/news/finance-and-economics/21576665-grubby-greenbacks-dear-credit-full-shops-and-empty-factories-dollars-they
Annotations:
Upon reading the article and learning about the effects that hyperinflation has taken on Zimbabwe, it is clear as to why this issue is so very relevant and significant. Having inflation rise an alarming 231 million percent is absolutely astonishing, and a feat that would have been perceived as impossible until its actual occurrence. The fact that the depleted economy of the country allowed t\he inflation rate to rise to such astronomical proportions is shocking, and the thought of the effects this had on the nation's citizens also raises concern. To put just how little the money was worth during this hyperinflation epidemic, it is safe to say that if a person went to go buy some groceries at a local market, they would need millions, perhaps billions of their dollars just to buy some food to get buy for their family to meet ends meet.
Although Zimbabwe is a developing country, and is not by any means towards the top of the world in terms of events having international implications, this story still remains relevant within the economic standards of the world. It shows another example of how a country that "just prints more money" will not raise its nation's monetary values, and will in fact, set the country on a path towards inevitable inflation and potential economic collapse. Now, the country will need to completely rebuild its monetary system, its banking processes, and construct guidelines that will prevent hyperinflation from infiltrating into the country any more.
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