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Strategies & Market Trends : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?

To: ggersh who wrote (11659)	9/23/2008 2:35:19 PM
From: Real Man	6 Recommendations Respond to of 71407

Hyperinflation is actually much worse than deflation... The production capacity gets completely destroyed, as everyone in the whole country starts speculating on stocks, goods, gold, etc. It ends in depression. As soon as the currency is anchored to something and the money printing stops, speculators go broke, and the real economy starts to rebuild itself (from a complete ruin). It can go on for quite some time too - years... decades.. as we've seen in numerous examples. The currency just keeps adding multiple zeroes per year, and there is no halt to it. This shuts down the trade, turns it into barter, since nobody is willing to accept money for goods or services. Typically fascism is the form of dictatorship/totalitarian regime that very often arises as a result of hyperinflation. Which is why the preferred response of a Central Bank to a currency crisis is normally to RAISE rates, not to lower them.