User 269319

What Effect Will Hyperinflation Have?

I don't think the current delimma will induce hyperinflation, or if it does it will be akin to the smaller examples than the larger examples. I do think we are doomed, however. It mostly has to do with the fact that entitlement programs in particular Medicare and Social Security. The system is insolvent and will come to a head in the 2050s (or so). At some point there will be an inflexion point where Uncle Sam will not be able to borrow enough money to keep the popular programs in place. As this happens the government will print money rather than terminate the programs for political expediency. This will in fact cause massive abandoment of the dollar to the much more stable Euro and other instruments. The result will be medium to high levels of hyperinflation.