Hyperinflation to happen overnight?

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etsan's picture
etsan
Status: Bronze Member (Offline)
Joined: Apr 22 2009
Posts: 57
Hyperinflation to happen overnight?

Hello,

I heard that hyperinflation can happen overnight. This means we can wake up one morning and the cost of a loaf of bread can be $50. Can this be true? How long does it take for hyperinflation to hit the US dollar? A week? a few months or years? Thanks.

 

Davos's picture
Davos
Status: Diamond Member (Offline)
Joined: Sep 17 2008
Posts: 3620
Re: Hyperinflation to happen overnight?

The dollar says: "In God we trust". When people lose that trust it is all over. If China dumped our bonds it would be all over. If we default it would be all over. If they announce massive QE it'll be all over. 

By all over I mean instantly. 

Once they lose trust in the dollar people run to the store and get stuff because come tomorrow that dollar will buy less stuff. Shelves go bare, price go up.

Davos's picture
Davos
Status: Diamond Member (Offline)
Joined: Sep 17 2008
Posts: 3620
Re: Hyperinflation to happen overnight?

"Betting against gold is the same as betting on governments. He who bets on governments and government money, bets against 6,000 years of recorded human history." Charles de Gaulle

bluestone's picture
bluestone
Status: Gold Member (Offline)
Joined: Dec 29 2008
Posts: 263
Re: Hyperinflation to happen overnight?

Etsan

I recently spoke to a woman from Russia.  She lived in the Soviet Union during its collapse and the ensuing years.  She told me that in one day the price of bread rose $100.  Don't know if that will happen to the USD but I wont count it out.

 

Brian

nickbert's picture
nickbert
Status: Diamond Member (Offline)
Joined: Jan 14 2009
Posts: 1207
Re: Hyperinflation to happen overnight?

My wife's home country had an overnight devaluation of about 40%.  I believe it was intentionally done by the government rather than inflicted by market forces, but it was no less devastating.  She said the stores were all empty in less than a week; after that point you pretty much had to go to the black market.

Is it likely to happen to the US?  Probably not, but it's certainly possible.

- Nick

Johnny Oxygen's picture
Johnny Oxygen
Status: Diamond Member (Offline)
Joined: Sep 9 2009
Posts: 1443
Re: Hyperinflation to happen overnight?

 

 

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