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Monday, May 28, 2012

''How Hyperinflation Happens''

From Don't Tread On Me
By Silver Shield

''Since I believe that hyper inflation is the most likely out come I want to look at it a little further.
Hyperinflation has two technical aspects to it, 1. the quantity of money is essential.  If there are a lot of dollars relative to the amount of real goods and services out there it is a prerequisite to a hyper inflation.  If we double the money in quantity relative to the good or services the end result is that prices will double because there are twice as much dollars in circulation. This very clearly points out that inflation of the currency does not really cause prices to rise as much as you need more worth less dollars to buy the exact same amount of goods as before.''


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