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Originally posted by Gibbon
When a nation starts just creating money out of thin air like we have been doing through quantitative easing it's currency becomes less and less valuable because there is more and more of it. When the supply of our currency exceeds demand the value drops and it takes more of it to purchase goods.
If the mint started minting Trillion dollar coins then hyper inflation is here. All you money in the bank, becomes worthless overnight. Meaning food, clothing, energy, and all basic supplies become very expensive because there is more money than goods to purchase and the goods become more valuable than the currency.
If the fed say started dumping $250,000 bags of money on peoples front lawns then everyone would have lot's of money, but the cost of a loaf of bread might be so high that it takes half of that money to go to the store and buy it. The other half though could be used to pay off your house.
That is an extreme example, but it illustrates the idea behind purposefully devaluing a currency to reduce debt which is what we are doing right now I believe.
My only word of advice would be to store up basic necessities for at least a year so that if the US does go into a hyper inflationary period you have the things you need until we come out on the other side
Originally posted by VictorVonDoom
Right. We lose pallets of $100 bills in the Middle East, and now a trillion dollar coin. I can see Bernake now, "I had it in my pocket just a minute ago, everyone look around on the floor. It was about this big ..."
Originally posted by Gorman91
reply to post by PhoenixOD
Baked by real gold?
I've got no problems with that.
Call it cheating, but if its real money, who cares?