The food riots in Venezuela are caused by the combination of hyperinflation and price controls. All countries pass five bad laws when they get hyperinflation: price controls, capital controls, rationing, anti-hoarding, and financial repression laws. Congress passes them in my forthcoming novel The Unelected President.
The books shows how a president needs to deal with it. How you as an individual need to prepare for it and deal with it if it happens is another matter.
That is covered in my non-fiction book How to Protect Your Life Savings from Hyperinflation & Depression, 2nd edition. http://johntreed.com/…/how-to-protect-your-life-savings-fro…
If and when we get hyperinflation in the U.S., I expect the actual Congress will pass the five bad laws and the actual president will sign them. If you prepare properly now, it will be a substantial inconvenience to you. If it happens here and you did not prepare properly, you can expect some version of what happened to Anna Eisenmenger and her family as she recorded in her diary Blockade, available on line for free. Very bad. https://archive.org/…/Blockade-TheDiaryOfAnAustrianMiddle-c…
What causes hyperinflation? Massive deficit spending accompanied by massive borrowing followed by massive “printing” of money. We now have the highest debt in our history. More importantly we now have the second highest debt-to-GDP ratio in our history. The highest was shortly after World War II.
In the past, hyperinflation was caused by war spending. Now, the cause is entitlement spending, as in Venezuela which is in Latin America, a war-free zone.
Except for a few years during and after the dot-com boom, America has been running deficits since the Reagan administration in the 1980s. Our huge national debt is the borrowing forced by deficit spending. And our “Quantitative Easing I, II, and III” are the massive money “printing.” Are we going to get hyperinflation? Not sure. But the stage has certainly been set.
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