The American Empire in a Changing World


Tuesday, October 16, 2012

''What happens when we finally get hyperinflation''


''An investor, who rather alarmingly put his half his entire portfolio into bullion and the rest into mining stocks, asked Silver Doctors how hyperinflation will actually unfold.

What will the economy look like and how will prices affect the average person?

The Silver Doctors reply that hyperinflation happens when the economy enters a self-reinforcing spiral. First, high interest rates harm the main drivers of the economy, and people can no longer finance housing or automobiles. Lower demand hurts business profits and tax revenues fall, ballooning the deficit. Governments finance their revenue shortfall, which raises interest rates again, and the economy suffers even higher interest rates.''

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