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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.
This sounds so crazy! I do not think that we can do anything about the debt. We can't pay it off in a few years. The only we can do is try to reduce costs in services that are being provided by the government. These services are being abused, which means we're wasting money. I hope that the stock market doesn't crash, because the Great Depression was terrible enough. I would take years for it to heal if it crashes.
ReplyDeleteGovernment spending obviously has to drop. It is unreal to think that one of the most powerful nations in the world could be prone to such an epidemic. I think it's pretty clear that we have a spending problem.
ReplyDeleteThis is absurd! Government spending needs to be cut for sure. For the U.S. being one of the best countries in the world, this is embarrassing.
ReplyDeleteIf the government shutdown leads to an economic shutdown, the results would be devastating. Imagine what other nations think of us right now. "Oh, look at the US, their entire nation just went to s**t because they cant agree on raising the debt ceiling". Really? Being the most stable nation in the world(big difference between rich and stable) we should not have this kin of problem.
ReplyDeleteIt is important for the U.S. to guard against hyperinflation. That would rock the entire world to its core and cause a massive amount of economic damage. There would be so many problems if the U.S. got into real trouble.
ReplyDeleteReading all the other blogs about the suggested food stamp cuts and other government funding cuts I saw that everyone wants to keep these programs yet everyone complains about the deficit. As a leader in Boy Scouts I was taught the line "If you try to please everyone, you end up pleasing no-one" and I think this applies to our current situation. Our government needs to stop worrying that some groups of people will be unhappy with some cuts and realize that trying to make bills that positively affect everyone are not good bills and certainly not pull us out of the recession. Some people need to realize that they are not Gods gift to society and that if the government stops funding their enterprise it will be because we are trying to better our country. Suck it up America.
ReplyDeleteYou're absolutely right Lem, hyperinflation of the U.S. dollar would have global effects, and disrupt major markets overseas. I would not be surprised if hyperinflation of the dollar led to a global financial crisis much larger than the Great Recession of 2008. Also, people would most likely resort to bartering if the value of the dollar dropped too low, which would accelerate the process of the crisis.
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