First of all, we need to understand what the term "hyperinflation" means. It is currently happening worldwide; the country cannot sustain or keep up with their deflated currency. Everything we bought yesterday costs more today.
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| Today’s Prices. What cost a loaf yesterday now demands a stack a vivid reminder of how value shifts faster than we expect. |
How and where do we invest our money? Certainly not with any bank, that's for sure. Stocks are very unpredictable, as are most mutual funds and stock options; they can be confusing and expensive if we choose the wrong path for our financial return. This could cost us the retirement savings we once had. Here is the best-performing asset in 2016.
I am no expert in this field, but I do listen to the ones that are experts in this area of expertise, Jim Rickards, Mike Maloney, and Nick Barisheff, to mention a few. What controls inflation? Debt indeed plays an essential role. Take, for example, the American deficit at the end of 2015, which was $18.1 trillion, with a budget for the fiscal year of 2016 of approximately $19.4 trillion— mind-boggling. How will America and many other countries make their interest payment on their debt? Printing more money is only a bandage that increases additional inflation.
What backs up the U.S. buck?
There is no commodity at all. Richard Nixon eliminated the gold standard so he could have his freedom with the U.S., and now the buck is used all over the world as the currency of choice. When governments need more money, they just print it; who cares at the time? That is their solution. Then along came Mr. Ronald Reagan, the white shining-armour man who had to compete in the Cold War with Russia.
What did this competition prove other than increasing spending on their military forces and just creating more debt? Ronald wanted to have the most up-to-date weapons, planes, ships, and submarines to protect the world. We do appreciate his judgment, but it only got us all into a painful period that took years to recover from. It arrived several years ago; Mr. Bush helped the increases also with his reckless spending on a war that never proved any of the claims he had made.
Some of the Solutions for Hyperinflation
-Central banks have to stop printing more money so they can keep up with the interest on the deficit.
-The government has to find a way to lower their expenditures
-Increase taxes, with a better system of collecting taxes that are outstanding.
-The federal government has to raise the reserve requirements.
-The federal government has to implement stricter limitations and regulations with tougher disclosure for mortgage brokers and stock brokers
What are some of your thoughts on hyperinflation? Do you think it is happening at an alarming rate?
The biggest problem with government data released for public viewing is that unreliable information corrupts and manipulates it.
All the Best,
Joseph F. Botelho Newsletter on Substack
What did this competition prove other than increasing spending on their military forces and just creating more debt? Ronald wanted to have the most up-to-date weapons, planes, ships, and submarines to protect the world. We do appreciate his judgment, but it only got us all into a painful period that took years to recover from. It arrived several years ago; Mr. Bush helped the increases also with his reckless spending on a war that never proved any of the claims he had made.
Some of the Solutions for Hyperinflation
-Central banks have to stop printing more money so they can keep up with the interest on the deficit.
-The government has to find a way to lower their expenditures
-Increase taxes, with a better system of collecting taxes that are outstanding.
-The federal government has to raise the reserve requirements.
-The federal government has to implement stricter limitations and regulations with tougher disclosure for mortgage brokers and stock brokers
What are some of your thoughts on hyperinflation? Do you think it is happening at an alarming rate?
The biggest problem with government data released for public viewing is that unreliable information corrupts and manipulates it.
All the Best,
Joseph F. Botelho Newsletter on Substack

