The video below was on Bloomberg TV a couple days ago. All I can say is things are bad when the "hyperinflation" story goes mainstream.
I am a deflationist and disagree with the "hyper inflationary" monetary theory, but I think its important for all of us to see both sides of the bear case.
I believe the government will pay off its debts and we will avoid this type of horrific collapse. It may take us a decade to dig out of this disaster but it can be done.
If hyperinflation does happen, our lives will never be the same and our government will risk being overthrown.
Lets hope the powers that be are smart enough to deleverage everything down to affordable levels via deflation versus destroying the currency and trying to inflate out of it.
Deflation may cause a severe recession but it beats the alternative. Imagine saving all of your life and having it be worth nothing more than a few loaves of bread due to a worthless currency.
This is what hyperinflation does. It destroys everything in its path and creates chaos and political instability.
Germany went the hyper inflationary route in the 30's and ended up with Hitler.
A few years ago, many would have believed this guy belonged in a straight jacket. Today, this analyst is on Bloomberg. Amazing isn't it?
Lets hope whats described below never happens!
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