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Kookoo | 01-10-2010 04:44 AM
Surviving hyperinflation What happens after hyperinflation? How does it end? I wonder if anyone with more knowledge about other countries that have been through this in the past could answer this question. Here is my hypothesis for getting through a big event. - Have enough savings in gold + silver so that my wealth isn't destroyed. - Have enough preps (food + household items) to be able to survive a long period without having to spend my savings on goods at ever-increasing prices. - Employer manages to to stay in business, and manages to increase wages as necessary (maybe to the extent that a month's salary will pay off the remaining amount on my mortgage! :applause_) The things that concern me more are things like the utility services providing gas / electricity / water etc. to people's homes during this period, and the escalating costs of these bills. Where I live, it isn't really very practical (+ I lack the knowledge) to provide alternative power to my home. So... when a hyperinflation finishes, prices of goods will now be astronomically high, but this will now be in relation to a higher salary. Would this therefore mean that relative prices compared to income would be similar to now? I'd have paid off my mortgage.... and would still have my savings... Let's ignore thoughts about the collapse of society and the anarchy that would probably follow (:fan:), and go with the thought that people will be scared stiff, and bunker down and the community spirit will take over and everyone will be nice to each other... :4_8_4v: I'd like answers purely from a financial and economic perspective...

thrifty_bob | 01-10-2010 04:55 AM
Re: Surviving hyperinflation Sorry, think again. You won't get a higher salary. You will be lucky to have a job.

PastTense | 01-10-2010 10:34 AM
Re: Surviving hyperinflation It's not clear that we are going to have hyperinflation; in fact a number of commentators see deflation ahead; or deflation followed by hyperinflation or inflation in some areas and deflation in other areas. Most of the people I read see deflation in the price of housing in the price of housing for example--they believe housing prices will drop another 15% or so anyway. On the other hand there is substantial inflation in the health care area. No matter what is going to happen, I think the best strategy is to systematically go through your spending and cut unneeded expenditures.

skid | 01-10-2010 01:20 PM
Re: Surviving hyperinflation In hyperinflation all debts are discharged. In Zimbabwe, no one owns anyone any money. Hyperinflation has a life of about one year before everything falls apart and a new currency is issued Have enough preps and real money to last that period and you will survive that one year period very well compared to most. So, have 1-2 years worth of food/etc. on hand, have G&S and perhaps a strong foreign currency (Zimbabwe used USD) although I cant really think of one right now:) Maybe junk silver coins for everyday transactions

nickelless | 01-10-2010 01:23 PM
Re: Surviving hyperinflation Quote:
Originally Posted by PastTense (Post 2118631) It's not clear that we are going to have hyperinflation; in fact a number of commentators see deflation ahead; or deflation followed by hyperinflation or inflation in some areas and deflation in other areas. Most of the people I read see deflation in the price of housing in the price of housing for example--they believe housing prices will drop another 15% or so anyway. On the other hand there is substantial inflation in the health care area. No matter what is going to happen, I think the best strategy is to systematically go through your spending and cut unneeded expenditures.
Who are these paid-off talking heads who don't believe hyperinflation is on the horizon in this country? The U.S. is facing annual trillion-dollar budget deficits for the next decade on top of the $12 TRILLION we already have in debt, the Fed's printing press is cranking out worthless FRNs at lightning speed and countries from China on down the ladder are looking to dump the dollar. Having said that, "commentators" are not economists. And any economist who doesn't see hyperinflation coming in this country is smoking the best Keynesian pot on the planet. Become as self-sufficient as you possibly can and prepare to live simply and frugally off the official economic grid. I don't want to be anywhere near large public gatherings on the day the dollar finally collapses. It's going to get bad, really bad, but those of us who are keeping our eyes open and looking at what's going on are going to be less scathed than the rest. Keep prepping diligently and keep your eye on what's coming up behind us.

silverblood | 01-10-2010 01:38 PM
Re: Surviving hyperinflation I think the allegedly Keynesian pot-smoking commentators (not a fair accusation, IMO) you refer to and that PastTense referred to (but without the slurs) are the ones on this board. I don't know that they are paid for their comments, though. Much of what they say makes sense to me, although I'm not entirely sold either way. Here is just one, but there are a number of similar threads arguing hyperinflation vs deflation. http://goldismoney.info/forums/showthread.php?t=436777 Maybe someone will kindly add a few more good ones so we don't have to rehash the arguments in this thread again.

andial | 01-10-2010 01:54 PM
Re: Surviving hyperinflation I believe we are going to face high inflation but not hyperinflation. Part of the inflation being caused by the dilution of the U.S. dollar to make the debt situation manageable and another inflationary impact caused by the strengthening of the Chinese currency verses the U.S. dollar.

Patriotme | 01-10-2010 02:38 PM
Re: Surviving hyperinflation I believe that we are heading towards high inflation but I don't know if hyperinflation is on the horizon. When inflation starts growing the usual means to slow it is for an intelligent government to raise interest rates and cut back on the amount of dollars in circulation. Everyone here seems to know this so I guess we GIM readers aren't big CNN viewers. We have Obama, Reid and Pelosi so they'll probably do the exact opposite of what works. It appears that we are headed towards high inflation or another (or continued) deep recession caused by the growth killing taxes and high interest rates used to combat inflation. I read something of interest this month about inflation. Some economists believe that while we have put a ton of money into the total supply we may not get high inflation. Their reasoning is that the banks are sitting on their TARP money instead of loaning it out. The money (electronic) is sitting in vaults (make believe) instead of being in circulation. Long story short....the money is propping up the banks but not adding to the money that's out there. Soooo......that's kind of good I guess. The flip side is that we are borrowing money from Asia to prop up banks that aren't lending and helping out the economic recovery. Our gov. is so incompetant.

Unclad Lad | 01-11-2010 08:49 PM
Re: Surviving hyperinflation After hyperinflation comes ludicrousinflation. When you see plaid, it's here.

nickelless | 01-11-2010 11:59 PM
Re: Surviving hyperinflation Quote:
Originally Posted by silverblood (Post 2118874) I think the allegedly Keynesian pot-smoking commentators (not a fair accusation, IMO) you refer to and that PastTense referred to (but without the slurs) are the ones on this board. I don't know that they are paid for their comments, though. Much of what they say makes sense to me, although I'm not entirely sold either way.
You misquoted me. I never said that the Keynesian commentators are smoking pot. I said the commentators are smoking Keynesian pot--they're inhaling the economic drugs that their kingpin Ben Bernanke is supplying them with and they're too happy with what he's giving them to question whether what he's giving them will end up killing them. How can trillion-dollar deficits for the foreseeable future, increasing massive government intervention in private markets and the unchecked printing of Federal Reserve Notes have any possible positive outcome? We're having increasing trouble finding buyers for new federal debt and those creditors who already hold FRNs are looking to exchange them ASAP for hard assets, taking our country out of our own hands, yet we still have people trying to put a positive spin on what the Fed, Treasury, Congress and White House are doing fiscally??? I stand by my original statement. It's time to shore up our lifeboats because our ship of state is sinking into a bottomless sea of red ink very, very rapidly.

philobeddoe | 01-12-2010 12:37 PM
Re: Surviving hyperinflation Quote:
Originally Posted by Patriotme (Post 2118925) I believe that we are heading towards high inflation but I don't know if hyperinflation is on the horizon. When inflation starts growing the usual means to slow it is for an intelligent government to raise interest rates and cut back on the amount of dollars in circulation. Everyone here seems to know this so I guess we GIM readers aren't big CNN viewers. We have Obama, Reid and Pelosi so they'll probably do the exact opposite of what works. It appears that we are headed towards high inflation or another (or continued) deep recession caused by the growth killing taxes and high interest rates used to combat inflation. I read something of interest this month about inflation. Some economists believe that while we have put a ton of money into the total supply we may not get high inflation. Their reasoning is that the banks are sitting on their TARP money instead of loaning it out. The money (electronic) is sitting in vaults (make believe) instead of being in circulation. Long story short....the money is propping up the banks but not adding to the money that's out there. Soooo......that's kind of good I guess. The flip side is that we are borrowing money from Asia to prop up banks that aren't lending and helping out the economic recovery. Our gov. is so incompetant.
Oh, we got high inflation. Have you seen the price of these meal deals at these fast food places? They typically want $6 to $8+ now.

gunDriller | 01-12-2010 03:14 PM
Re: Surviving hyperinflation Quote:
Originally Posted by philobeddoe (Post 2122233) Oh, we got high inflation. Have you seen the price of these meal deals at these fast food places? They typically want $6 to $8+ now.
i noticed that at KFC a few weeks back. $8 for a "normal" meal, $4 for the "daily special", which isn't bad (2 pieces chicken, corn on the cob, imitation mashed potatoes, shortbread roll, thing of milk.)

11S11ver | 01-12-2010 04:24 PM
Re: Surviving hyperinflation I think hyperinflation is inevitable. They clearly want to destroy the dollar they just need to pillage as much as possible first. Eventually they'll allow all the dollars overseas to repatriate. That alone will cause hyperinflation. As far as preparation, voluntarily lower your standard of living now little by little. Learn to live happily on little. Separate yourself from those who still maintain the keepin up with the joneses attitude. Keep your savings in tangibles. Learn a skill that can be traded for goods and services. Keep a close circle of friends that think like you do. Always assume the worst and pray for the best. Find happiness in the bleakest of situations. Learn how to use all manners of weapons for everything from hunting to protecting.

phildavis111 | 01-13-2010 02:50 AM
Re: Surviving hyperinflation A few ounces of fine burning green stuff to tuck into your pipe would lessen the stress.

nickelless | 01-13-2010 01:46 PM
Re: Surviving hyperinflation Quote:
Originally Posted by phildavis111 (Post 2123618) A few ounces of fine burning green stuff to tuck into your pipe would lessen the stress.
You mean this? :biggrin: http://herd.typepad.com/.a/6a00d8345...71c3970b-800wi

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