Hyperinflation; what is it? | A Definition | Don’t Worry!

Do not worry! A complete collapse of the economy may be a good wake up call in more ways than one. We already know that our government is controlled by the corporate giants and the central banks, and we are in the wrong hands. We just refuse to accept it.

I found this interesting article with an informative  video at:  http://www.goldonomic.com/hyperinflation.htm I hope you find it useful.

And this definition of hyperinflation by Gonzalo Lira.
“But hyperinflation is not an extension or amplification of inflation. Inflation and hyperinflation are two very distinct animals. They look the same—because in both cases, the currency loses its purchasing power—but they are not the same.
Inflation is when the economy overheats: It’s when an economy’s consumables (labor and commodities) are so in-demand because of economic growth, coupled with an expansionist credit environment, that the consumables rise in price. This forces all goods and services to rise in price as well, so that producers can keep up with costs. It is essentially a demand-driven phenomena.

Hyperinflation is the loss of faith in the currency. Prices rise in a hyperinflationary environment just like in an inflationary environment, but they rise not because people want more money for their labor or for commodities, but because people are trying to get out of the currency. It’s not that they want more money—they want less of the currency: So they will pay anything for a good which is not the currency.”


6 Responses

  1. You are welcomed!


  2. What a compliment! Thanks!

    This book is next on my library reading cue. Not kidding! Thanks for being another person to recommend it.


  3. Hi Heather! Definitely it is time for a change. When you can, take a look at this post (2nd link) Interesting!
    My post on Walmart will be mainly quoting you, and sending them to your site because I couldn’t do any better. 😉


  4. Hi Rio,

    That link was an interesting site and helped me get a broader idea of things. I’m still on fence with this. It sounds like old ideas are not working. Maybe it’s time for something new. I can’t wait to see the Walmart piece!


  5. Hi Heather! Actually this is about hyper-inflation which is a little more serious than inflation. If you check the links at the bottom of the post you’ll get a better idea of what is going on.
    I love your blog! I will be putting some of your content (Walmart) in a post and linking to you. Let me know if you object for any reason. Thanks for your comment!


  6. You connected with me on Blog Catalog. I really like the diverse ideas and thought you put into your content.

    Thanks for mentioning inflation here. I’m not worried because I know the value of the dollar in India. There are so many millions of people who want the dollar there that I think the extra circulation may not be a problem. That is my own simplified thought. I’m not an expert on these things but if we have expanding markets then it stands to reason we will have greater circulation of currency. The dollar will be the rupee for a very long time.


Comments are closed.

%d bloggers like this: