Tag Archives: hyperinflation

Is the U.S. dollar, as the primary global reserve currency, under threat? While the dollar maintains its position through the petrodollar system and military backing, structural risks such as the $38.4 trillion national debt and the diversification of foreign reserves pose challenges. What could trigger a monetary shift? A gold revaluation? Debt defaults? Investors should consider the strategic importance of physical gold as a hedge against currency transitions and the long-term erosion of purchasing power.

Hyperinflation is not an unusual phenomenon. 33 countries have experienced hyperinflation over the last 100 years of which no less than 22 have experienced it in the past 25 years and 4 in the past 10 years. The United States is one of the few countries to have experienced two currency collapses during its history (1812-1814 and 1861-1865). Could it happen again?

There is a difference between inflation and hyperinflation and there is no gradual path from one to the other. To wind up with true hyperinflation, some very bad things have to happen. The government has to completely lose control the populace has to completely lose faith in the system or both at the same time. Are we there yet? Let's take a look.

Warning: Reader discretion is advised! You are about to read a fictional account of what we could be faced with in the coming years - perhaps as early as 2024 - based on events that are already taking place in America today. It is most alarming but, unfortunately, after everything I’ve seen during my time inside Wall Street, inside the CIA and inside the halls of the Pentagon, that’s the path America’s heading down.

If we look at the economic collapses of the past, from the fall of the Roman Empire to Weimar Germany to Argentina and Zimbabwe, the pattern is extremely similar. Let's have a look at that pattern and ask ourselves if the present situation might not play out much the same.

This is the scenario nobody thinks is possible but really, at the end of the day, it’s not like the U.S. can print money and live on debt forever - right? so when something cannot go on forever what happens when it stops?

What I outline below is not a forecast but a potential scenario which I sincerely hope won’t come to pass but the risk of going down the road to political and financial system collapse, social unrest and even civil war, and eventual hyperinflation, is certainly there.

Most of what passes for explanations of inflation and its causes are convoluted and confusing. It is like looking into a pond of muddy water and trying to ascertain what lurks blow the surface. Below are some facts about inflation that should help clarify things:

“I'm predicting for something close to a hyperinflationary circumstance, and effectively a collapsed economy, in early 2022.”

There are two specific reasons why runaway inflation did not happen a decade ago, and why it won’t likely happen now, either: