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Hyper Inflation how it happensTidying up my sitemap in 2023 I stumbled upon this old page and decided it was worth keepting. |
Interesting
Video about the Hyper Inflation in Germany after WW1 Started this video at an interesting place so you can rewind after. Overseas students bought up entire streets of homes on their allowances! Not everyone does badly under hyper inflation. Hyper Inflation Video 1 Jordan Peterson on Inflation (Not Paul Rogan) - Featuring Peter Schiff Video 2 made 14 years ago. Notice the predictions, how true were they? Video 3 Hyperinflation nation, these videos seem to focus on scaring people to buy gold. List of historical and forthcoming Fiat currencies and their collapses Central banks around the world have made massive increases in money supply by way of Quantitative easing. This is a fancy world for making more bank notes or printing money Genius financial wizard Milton Friedman proved that inflation is directly related to increases in Money supply As the money supply increases, there is more money available to spend. So in simple terms people who sell goods realise that prices ought to go up accordingly or they will lose out. The buying power of 1 Dollar or 1 Pound is reduced or diluted when more money is printed. The effects of inflation are very ugly, and the effects of hyper-inflation always result in a total destruction of an economy. Between 1968 and 1998, according to a 2001 speech by Mervyn King ex governor of the Bank of England in London The correlation between growth in the world money supply and global inflation averaged 0.98, a near-perfect correlation. Hyper inflation nation Video 3 for over 18s How does INFLATION affect the average man? The bottom line is that the public will lose out. Here is how. Food prices are worst affected, they rise greater than your wages will rise Cash becomes worth much less, so your savings will be "inflated away" The buying power of your money will be very low when you take a vacation abroad. Shops keep increasing the price of their goods as the local currency buys them less imported stock. What are positive aspects of INFLATION? The value of properties usually rise in the local currency Peoples debts will become smaller relative to their income and assets The elite can benefit from inflation for these reasons Having large amounts of assets such as stocks or property or precious metals can enrich the wealthy The general public who do not have large asset bases usually become impoverished Stocks tend to rise as the companies make more profits than before.( Such as in the Zimbabwe) What can you do to stop inflation from destroying your wealth? To begin with you can avoid being like the "average man" in the quote below... The average man doesnt wish to be told that it is a bull or a bear market. What he desires is to be told specifically which particular stock to buy or sell. He wants to get something for nothing. He does not wish to work. He doesnt even wish to have to think --- Jesse Livermore --- |
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