Hyperinflation will be worse than the Great Depression

A banana republic presidente noted that the Manhattan DA indicting ends the US criticizing Third World countries for not living up to US political standards.

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You ain’t seen nothing yet. Wait until the US devalues the USD through hyperinflation. People all over America and all over the world put their life savings into US dollars. The day the dollar dies, they will be enraged at us.

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They may think they can take us over militarily on that day. No. Nations have caused hyperinflation again and again going back to 400 BC. Germany had it in 1921-2, then kicked Europe’s ass militarily 18 years later. There is some evidence that the Germans felt, with good reason, that their hyperinflation in 1921 was caused by the Treaty of Versailles reparations and other punishments after WW I. Hitler may never have achieve power absent Germany’s hyperinflation.

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But USD hyperinflation will end the USD, it will destroy life savings here and around the world. It will end the entitlement state. Our navy vessels abroad may not be able to get refueled and get sold for scrap. We will not be trusted. NATO may collapse.

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But even China will be hurt. The US is their second biggest meal ticket. They are powerful in large part because of selling stuff to us. The day the dollar dies, China gets a huge pink slip from us, as does the rest of the world.

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USD hyperinflation will be the biggest financial crisis in US history—bigger and worse than the Great Depression.

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Hyperinflation always ends and it ends overnight when the nation in question creates a new currency that people trust, e.g., the Rentenmark in Germany in 1922, or when the government ends capital controls which prohibit possession or use of foreign currency and/or gold in the US, e.g., Zimbabwe in 2008. That does NOT fix the loss of value caused by the hyperinflation of the USD. It just lets the US economy start over from scratch and we would likely remain the #1 GDP in the world after a temporary commotion.

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But the politicians will almost certainly enact the Five Bad Laws as al governments do during hyperinflation: capital controls, price controls, rationing, anti-hoarding laws, and financial repression laws. Those will turn the US into an economic disaster with empty store shelves, starving rich people, and a GDP of $3.67 until they are repealed. During that time, we will be vulnerable to all sorts of things—like Hitler winning power—as Germany was in 1923.

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You as AN INDIVIDUAL need to protect your life savings by minimizing your USD-denominated assets and maximizing your NON-USD denominated assets. Can you wait?

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The first sentence of my book is “It can happen tomorrow.” If you act before it starts, protecting yourself is not especially difficult. Also, if hyperinflation somehow does not happen, no big deal and no great cost to the protection you bought.

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However, if you wait until after it starts, everything you try to do will be illegal and/or impractical. And I keep pointing out that we are not talking about eating at home more often. The combination of hyperinflation and price controls empties store shelves and that causes starvation and the rich of formerly rich may have some immunity to some predations of some financial crises, but they have NO immunity to starvation in hyperinflation.