Hyperinflation
| January 7th, 2010I was thinking about writing this article about hyperinflation yesterday and I found that I did not know that much about it. I started doing some research and found it to be kind of scary. Hyperinflation is real and it can happen to America; it probably will happen to America.
Hyperinflation is caused by printing large amounts of money therefore decreasing the value of the money every time more money is printed. It is simple physics, for every action there is an equal and opposite reaction. Whenever more money is printed it dilutes the value of the money. Think of it like this, you have a large glass that is 1/4 full of juice, you pour water to fill up the other 3/4 of the glass. Now the concentration of the juice has been diluted. This is exactly what happens when you print tons of money.
In 1923 the Weimar government in Germany had to find out the hard way that hyperinflation is real. In 1993-1994 Yugoslavia saw that a budget deficit financed by printing money leads to hyperinflation.
Now in 2010 America is on the road to hyperinflation. The people that are driving the car are not looking for the brake, instead they are pressing the gas. But since this is America the laws of physics do not apply to us.
