Let’s take a look at year country inflation in (%) per month in hyperinflation-scenarios from the past:
1919 Sovjetrussia < 32,400 %
early 1920ies Weimarer Republic < 32,400 % factor 4 weekly
1921-1923 Austria 1 Schilling equals 10,000 Kronas factor 3 daily
1921-1924 Hungary < 41.9 trillion %
1921-1924 Poland < 8.5 trillion %
1943-1944 Greece < 8.5 trillion %
1990 Bosnia Herzegowina + Jugoslavia
2006-2009 Zimbabwe >1000 trillion %
…each time fortunes, savings, all purchasing power was wiped out. All this, just because central banks had printed too much money and population lost trust into that paper.
These hyperinflations have one pattern in common. Every 70 – 80 years they reoccur. Analogue to that take a look at UK’s first bankruptcy in 1799. 70 years later, in 1869 there was the Bankruptcy Act, further 70 years later, in 1939 we had World War II, and what did we have in 2009 and what are we still into? CRISIS. They can only do the bankruptcy 3 times so hence we have now arrived at the end game. We are in unchartered waters now, how they will proceed. 2009 was the year of Bankruptcy and that is why they crashed the system. Otherwise we were out of debt and their control would be ended.
And getting even closer to the answer of that question, take a look on these figures:
The market value of all derivatives (financial betting, futures, options) is 582.655 trillion USD (84.443 USD per capita)
The market value of all bonds worldwide is 92.082 trillion USD (13.354 USD per capita)
The shareholder market capitalisation (worldwide) is 56.050 trillion USD (8,123 USD per capita)
The entire Gold worldwide is 168.3 metric tons, which represents 8.435 trillion USD (1,222 USD per capita)
The entire Silver worldwide equals 35 trillion USD or 5 USD per capita.
Bear in mind that, as far as the precious metals sector is concerned, the derivative sector and the underlying physical sector are disconnecting right now.
There have been cases, where Investment Banks operating in the derivative market were sentenced guilty because they could not deliver e.g. the silver that was supposed to be stored. It was all on “paper” and “computer screens”. And these Investment Banks by the way are the ones who keep the gold and silver prices artificially “low” by shortening the market.
The only one reason why the “world’s reserve currency” is still in place is the ability of the U.S. government to “enforce” the dollar for decades because of its enormous and superior military. But for how long can the US continue to threaten other countries by force and make them continue buying U.S. treasuries? Because if they stopped buying the US debt, the dollar would collapse and we won’t have the resources to fund the US military. The world resents the U.S. for maintaining its 700 military bases in 130 countries. China and Japan would be much better off using the money they spend on U.S. treasuries to expand the size of their own militaries. When the dollar collapses due to hyperinflation, no longer will the U.S. be the world’s superpower due to its military. China’s military will eventually exceed the size of the USA. The current military empire where the U.S. spend just about the same on defence as the rest of the world combined is unsustainable and over the long-term this wasteful spending is making the U.S. a lot less safe as a result. Having a safe and stable currency is the most important fundamental building block of having a safe and stable country.
Conclusion: Yes, hyperinflation can and will unfortunately and certainly happen here. So the question is not IF, but WHEN? But first we will see massive deflation, and what might be irritating right now, is that we have high inflation on the one hand in some sectors and deflation in other sectors. Deflation will become much, much stronger before it swings to the opposite extreme: Hyperinflation …then it will be too late to buy silver and gold, so why not prepare for it now?