Is Hyperinflation Imminent for the U.S.?

Posted by Mrs Money on December 20th, 2010

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If you’ve watched the news lately, there’s been news of inflation.  With as horrible as the economy is, something needs to change for the better.  Personally I don’t think that printing extra money is a good idea, but I’m not an economist, so I may not know what I’m talking about.  I have fears that hyperinflation is going to take place and it scares the pants off me.  I’m worried that if hyperinflation occurs, it will have a domino effect and worse things will happen.  Here are some of my concerns about hyperinflation:

1. Goods will become way too expensive.  Food prices will rise sharply, people will freak out and the grocery stores will be empty.  People will start buying food to hoard because of hyperinflation.  Other goods will cost a lot more money, which will mean that our current salaries will not go as far.

2. The stock market will crash.  After the news of hyperinflation breaks out and is a reality, people will respond by selling all their stocks to get out of the stock market.  After the stock market crash, who knows what will happen.

3. Money in savings will be useless.  Paper money won’t be worth anything.  People will start bartering more for goods and services.  Gold and silver prices will be higher than anyone would have ever imagined.  All that money that you worked hard to save over the fast few years?  Not worth anything any more.

4. Riots will break out as food and water become scarce.  The government will send out the National Guard to try to counteract the riots, but it really won’t help.  People become more angry.

5. Other countries will refuse to help the U.S. and China will stop purchasing bonds and investing in the U.S. economy.

6. Oil will become a lot more expensive, and the countries we get oil from will stop sending us oil.

Of course, these are worst case scenarios and it’s almost like Armageddon.  I’m not sure if hyperinflation will be the Armageddon or not, but I know that it wouldn’t be a good thing for the United States.  I know that one of my biggest concerns is not being able to pay for food or have access to enough food to feed my family.  It’s also disheartening to think that all that money that we’ve saved up will not be worth anything.  That’s a horrible thought!

I’m not an economist, and I try my hardest to stay away from the news.  Things in the country are scaring me right now, and who knows what’s going to happen.  I wish I had a magic wand to just make everything better, but I don’t.  I think I’m just going to keep on living life like I have because the only other alternative is to worry, and that doesn’t help anything.  We’ll keep gardening, living simply, and saving money because that’s what we always do.

What do you think will happen with the United States economy in the near future?  Do you think we heading towards hyperinflation?

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7 Responses to “Is Hyperinflation Imminent for the U.S.?”


  1. There won’t be hyperinflation… maybe 5% inflaiton in the future… but we NEED it!

    Buy real assets ie property!

    [Reply]

    Mrs Money Reply:

    Interesting. How soon do you think there will be 5% inflation?

    [Reply]

  2. Jessica07 says:

    Whoa. We’ll that was a reality check. Your logic was fearfully persuasive. I hope you’re wrong, but wow.

    [Reply]

    Mrs Money Reply:

    Jessica- I hope that I am completely wrong too. I wouldn’t read too much into it- not like we can really do anything about it… :)

    [Reply]

  3. Holy mackerel. Don’t be frightened by that kind of talk. It isn’t going to happen here at this time. There are sound economic reasons to believe that hyperinflation in the US and Western European economies is as distant a possibility as a sudden explosion of the sun. It may happen someday…but if it does, it’ll be in the very remote future, and by then we will have had lots more to worry about than that.

    These indeed are scary times. But the scariness has to do with persistent (and rising) unemployment, bad leadership from both political parties, a widening economic chasm between the rich and the no-longer-middle class, a poorly educated workforce and electorate, and a glut of increasingly devalued real estate. We’ve managed to get through similar things in the past, and we will get through them again.

    [Reply]

    Mrs Money Reply:

    Funny- I hope that nothing bad happens. I was just presenting an interesting scenario. A scary one, but interesting. I think it’s funny when I find the doomer blogs. Sometimes they are off the wall! ;)

    [Reply]

  4. More likely than hyperinflation is a simple breakdown in trade due to a collapse in the value in the U.S. dollar. The U.S. isn’t totally bereft of resources, so coal, shale gas, etc… can all be used as substitutes, and the U.S. still has the most powerful military in the world. On top of that, the U.S. has plenty of unemployed people that wouldn’t mind going back to work. I believe what is more likely is that internationally, the U.S. dollar will be worth significantly less, but this doesn’t necessarily mean the end of times for the country itself; it does mean a rebalancing and a lowered standard of living, especially for those people used to a debt-driven lifestyle.

    [Reply]



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