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Hyper Inflation
Nishant Baxi


Understanding the dynamics of those roles with this eBook can help you to reduce panic feelings about what is going on with the economy.





Hyper Inflation



Nishant Baxi



© Nishant Baxi, 2020



ISBNВ 978-5-4498-2844-6

Created with Ridero smart publishing system


NishantВ Baxi



Hyperinflation: How toВ Prepare for the Collapse ofВ the US Dollar



UUID: e332739e-5325-11ea-8c9d-1166c27e52f1



This ebook was created with StreetLib Write http://write.streetlib.com



Hyperinflation:



NishantВ Baxi



Table ofВ Contents



ChapterВ 1



Introduction



Page…..3



ChapterВ 2



What is Hyperinflation?



Page…..4



ChapterВ 3



How does Hyperinflation Occur?



Page……7



ChapterВ 4



Examples throughout History ofВ Hyperinflation



Page…..8



ChapterВ 5



Hyperinflation & the Future – Reasons for Concern



Page…..10



ChapterВ 6



What will Happen if Hyperinflation Occurs inВ the Future?



Page…..13



ChapterВ 7



How toВ be Prepared for Hyperinflation



Page……17



ChapterВ 8



Conclusion



Page…..20



ChapterВ 1



Introduction



The economy is something that influences each and every one ofВ us. InВ the past several years the economy has been inВ aВ downward spiral that has caused many people toВ be worried about the future.



There are high rates ofВ unemployment, people are shutting the doors ofВ their business, and new business ideas are being placed on the back burner for now. Many people are struggling toВ get byВ financially and heavily inВ debt.



With foreclosures at an all time high, people are losing their homes and struggling toВ make ends mean. Shelters for the homeless are full and even the charities that are trying toВ help people out are running low on money and supplies that they can offer.



We aren’t talking simple inflation over time though with this topic. Instead, we are talking about them being so large that they can cause prices to double in a very small period of time. That can be a few months, a few weeks, or

inВ some parts ofВ the world less than aВ day.



Economic studies have long been aВ part ofВ understanding inflation. What the experts are stating at this point inВ time is that we are headed down aВ path that will take us into hyperinflation when we really want toВ get into aВ recession.



Some people believe that throughout history we just have to allow the economy to go through these cycles. Sometimes it is good and other times it isn’t. However, there is enough information now that shows by properly understanding hyperinflation, what causes it, how to take action, and how to recover from it the US dollar can be protected.



As aВ Nation we are lucky that there have only been two documented times inВ history when hyperinflation has occurred. Yet many analysts believe it is on the horizon so we have toВ make changes right now toВ preventВ it.



All ofВ us out there have been dealing with the tough economic times. They have been aВ factor for everyone from the top toВ the bottom. InВ aВ time ofВ global economic values and online businesses that deal all over the world it is even more important that the value ofВ the US dollar is able toВ be retained.



As you learn more about hyperinflation you can stop feeling like you are at the mercy ofВ the government or society toВ help you get by. What you will also realize is that many people blame the government for not helping but when they do help such efforts can actually trigger hyperinflation instead

ofВ preventingВ it.



Understanding the dynamics of those roles can help you to reduce panic feelings about what is going on with the economy. It can also help you to see why extending more credit, printing more money, and even reducing taxes aren’t solutions that can help our economy.



There is no easy solution either toВ slowing inflation or preventing hyperinflation. There are many theories out there and there are also those that belief we can learn from the mistakes ofВ the past inВ terms ofВ how the economic foundation ofВ money inВ the USA is operating.



ChapterВ 2



What is Hyperinflation?



InВ order toВ really understand all ofВ what we will cover, you need toВ have aВ solid grasp on what hyperinflation is. InВ simple terms it is tied into inflation levels that are extremely high and out ofВ control. They are well beyond the norms ofВ inflation.



As aВ result ofВ hyperinflation prices increase rapidly. This causes many ofВ complex concerns. There are basic things we all need and those seem toВ what the price increases hit the hardest.



For example when you go toВ fill your car up at the gas station you may find that it has jumped

byВ several cents per gallon. Sometimes those jumps are as much as ten cents per gallon overnight too. This can increase the budget inВ your household for fuel substantially.



We all have toВ eat and the cost ofВ food continues toВ increase during hyperinflation too. When you buy food items at the grocery store it is going toВ be much more than before. Due toВ the increased costs ofВ supplies it also means you can plan on paying more when you dineВ out.



One ofВ the other significant areas ofВ the budget where you will see increases are inВ utilities. Most ofВ us have seen several spikes and increases inВ the costs ofВ utilities over the past couple ofВ years. It is tough due toВ the fact that we need water, heat, and cooling available toВ us. We also need electricity so we feel that we are at the mercy ofВ such companies.



Due toВ hyperinflation it is very hard for many households toВ make ends meet. They find their costs for necessities goes up and so they have less disposable income. For those on aВ fixed income or low income who were just getting byВ it is now virtually impossible.



Households are cutting out extras and that is why so many businesses are having problems too. When a household can barely meet their required expenses they aren’t spending on items that they consider to be wants or luxuries any more.



The terminology that experts use for hyperinflation is a period of time when the cycle of inflation continues to grow so rapidly that there isn’t any real balance in sight for it.



When you have an increase

in costs that is very fast, there is no controlling it, and prices are continually increasing with large jumps you have more than inflation to deal with – it is hyperinflation. It is very unusual but it does happen and it is something that the US dollar could be heading towards.



InВ order for hyperinflation toВ be present without aВ doubt one ofВ two things must occur:



If the accumulated inflation rate ofВ the past 3В year period is equal toВ or more thanВ 100%



OR



The accumulated rate ofВ inflation is more than 50% over aВ one month period ofВ time.



Even though there are historical standings ofВ hyperinflation hundreds ofВ years old, no one studied it and gave us solid information about it until 1956. AВ book

by Phillip Cagan called “The Monetary Dynamics of Hyperinflation” was a huge release that showed people some of the reasons why it happens and to give them an understanding of the process.



AВ great deal ofВ what is found

in this book has been given credible backing by economic specialists. They have studied the foundations of the US dollar and the economy. They don’t argue with what Cagan offered in that very enlightening book.



However, that doesn’t mean our Nation now has all of the answers of how to prevent high inflation and hyperinflation from occurring. The good news though is that the government and all citizens have access to information that can help them to identify the signs that may indicate that hyperinflation is going to happen.



It can help use to take action that will change the course of history. Most people don’t think much about economics or the economy of the USA when things are going well. When they turn the other way though people are fun of panic over it and they are ready to place blame.



Taking responsibility for the economy is aВ role we all need toВ step into. Too often citizens feel that their hands are tied and they have toВ make do with what is going on. Yet they have decisions about buying commodities such as gold, reaching out for credit that is offered, and how they will handle their own finances inВ tough economic times.



ChapterВ 3



How does Hyperinflation Occur?



There are many different variables that can occur when it comes toВ triggering hyperinflation. It is impossible toВ cover all ofВ them so we will cover those that have the most significant impact on the economy ofВ theВ USA.



When the general public decides toВ retain all ofВ their wealth inВ forms ofВ non monetary assets it can create problems with cash flow. There are many people that decide toВ invest inВ foreign currency such as with ForEx. This can all influence the amount ofВ purchasing power that the USA has as aВ whole.



InВ many instances the general public is looking at money inВ terms ofВ foreign currency. They may get price quotes inВ other currencies and that too can be aВ problem with very high levels ofВ inflation occurring.



Today’s society in the USA often has a buy it now and pay for it later attitude. Yet the balance

of credit purchases has to be very closely evaluated. The prices then have to be increased in order to help cover the losses of those that aren’t able to repay the credit that was extended to them.




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