Nishant Baxi
© Nishant Baxi, 2020
ISBN 978-5-4498-2844-6
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Nishant Baxi
Hyperinflation: How to Prepare for the Collapse of the US Dollar
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Hyperinflation:
Nishant Baxi
Table of Contents
Chapter 1
Introduction
Page…..3
Chapter 2
What is Hyperinflation?
Page…..4
Chapter 3
How does Hyperinflation Occur?
Page……7
Chapter 4
Examples throughout History of Hyperinflation
Page…..8
Chapter 5
Hyperinflation & the Future – Reasons for Concern
Page…..10
Chapter 6
What will Happen if Hyperinflation Occurs in the Future?
Page…..13
Chapter 7
How to be Prepared for Hyperinflation
Page……17
Chapter 8
Conclusion
Page…..20
Chapter 1
Introduction
The economy is something that influences each and every one of us. In the past several years the economy has been in a downward spiral that has caused many people to be worried about the future.
There are high rates of unemployment, people are shutting the doors of their business, and new business ideas are being placed on the back burner for now. Many people are struggling to get by financially and heavily in debt.
With foreclosures at an all time high, people are losing their homes and struggling to make ends mean. Shelters for the homeless are full and even the charities that are trying to 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
in some parts of the world less than a day.
Economic studies have long been a part of understanding inflation. What the experts are stating at this point in time is that we are headed down a path that will take us into hyperinflation when we really want to get into a 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 a Nation we are lucky that there have only been two documented times in history when hyperinflation has occurred. Yet many analysts believe it is on the horizon so we have to make changes right now to prevent it.
All of us out there have been dealing with the tough economic times. They have been a factor for everyone from the top to the bottom. In a time of global economic values and online businesses that deal all over the world it is even more important that the value of the US dollar is able to be retained.
As you learn more about hyperinflation you can stop feeling like you are at the mercy of the government or society to 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
of preventing 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 to slowing inflation or preventing hyperinflation. There are many theories out there and there are also those that belief we can learn from the mistakes of the past in terms of how the economic foundation of money in the USA is operating.
Chapter 2
What is Hyperinflation?
In order to really understand all of what we will cover, you need to have a solid grasp on what hyperinflation is. In simple terms it is tied into inflation levels that are extremely high and out of control. They are well beyond the norms of inflation.
As a result of hyperinflation prices increase rapidly. This causes many of complex concerns. There are basic things we all need and those seem to what the price increases hit the hardest.
For example when you go to fill your car up at the gas station you may find that it has jumped
by several cents per gallon. Sometimes those jumps are as much as ten cents per gallon overnight too. This can increase the budget in your household for fuel substantially.
We all have to eat and the cost of food continues to increase during hyperinflation too. When you buy food items at the grocery store it is going to be much more than before. Due to the increased costs of supplies it also means you can plan on paying more when you dine out.
One of the other significant areas of the budget where you will see increases are in utilities. Most of us have seen several spikes and increases in the costs of utilities over the past couple of years. It is tough due to the fact that we need water, heat, and cooling available to us. We also need electricity so we feel that we are at the mercy of such companies.
Due to hyperinflation it is very hard for many households to make ends meet. They find their costs for necessities goes up and so they have less disposable income. For those on a fixed income or low income who were just getting by 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.
In order for hyperinflation to be present without a doubt one of two things must occur:
If the accumulated inflation rate of the past 3 year period is equal to or more than 100%
OR
The