Why Can You Catch A Breath Before Hyperinflation in the US Sets In?

You must have been reading a lot about how hyperinflation is the first phenomena that you will come across when you wake up tomorrow morning. You must have also started looking for shelters and making contingency plans with your friends and family. Stop all this noise right there and read on to find why you are wasting precious time and energy. Here are 2 reasons why hyperinflation will not be there for breakfast tomorrow:

1. It Is A Mid-Range Possibility

Almost all economists agree to the fact that the decline of the dollar has started with the world superpowers starting to favor Yen over Dollar (to be specific, anything that is not the US dollar). Some people have also been routing for gold and silver reminding everyone of the Greek and Roman civilizations. But every economics and currency expert agree on one thing, this change will take at least a decade to set off in full motion and a couple more to complete the transformation completely.

This means that you have at least 10-20 years in hand before you can start worrying about the death of the dollar. And as has been evident, the economic forces are too unpredictable and volatile and nothing can be completely discarded. So hold onto the chair as you prepare for a financial roller coaster ride.

2. The Economics Of The Whole Thing

What exactly is hyperinflation? Is it another term for a high inflation rate? No. This has been the biggest misconception many people are suffering from and that has resulted in this frantic paranoid behavior.

Hyperinflation is economically defined as a state where the rate of inflation has become so high (the cut off is at 50%) that it is wiser to spend a dollar today than hold onto it for tomorrow owing to the extreme volatile nature of the economy. It is a situation where the prices of commodities (luxuries as well as essentials) will leap up in extreme short periods of time.

In the light of this explanation, it is safe to assume that hyperinflation will not be hitting the US shores in the recent years. As far as memory can trace back, the first warning of hyperinflation in the United States came in the 1970s when economists were sure that the USA will experience such a situation ‘very soon’. It has been 4 decades since then, and the hyperinflation occurrence has been nothing above zero.

While this piece doesn’t want to rout for the US government and its faulty economic policies which have led the country to this state of financial turmoil and inflation today, it can safely tell that hyperinflation is not imminent. Yes, you shouldn’t be ignoring the safe credit measures and the healthy finance tips after going through this piece.

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