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Hyperinflation 'Wiped Out' These Great Currencies, is the U.S. Dollar Next? Steve Hanke

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EDITOR NOTE: How many countries have experienced hyperinflation throughout the 20th and 21st centuries? Do a quick online search and you’ll find articles on the top 5 to 9 countries that have gone through this harrowing monetary ordeal. But the recorded number is much greater. Try 62 countries whose currencies have collapsed due to hyperinflation. The conditions surrounding each case are different (although WWII saw many economies and currencies collapse). But in cases where wartime invasion didn’t ravage a country’s economy, central banks all had their own unique “solutions” which led to a staggering rate in the multiplication of money. In the end, the currencies had to be revalued--anchored to another currency (in many cases the dollar). But is it the dollar’s turn to hyperinflate under the overconfident assumptions of our central bank? If so, what anchor would save the dollar in the end? Might it be gold and silver? What value do you think gold and silver will have once the dollar’s values begin diving fast toward the zero threshold?

There have been a total of 62 recorded cases of hyperinflation, and in all cases, the underlying currency in the economy has failed, according to Steve Hanke, professor of applied economics at Johns Hopkins University. "If you have hyperinflation, you can wipe out a currency and you can wipe it out fast," Hanke told David Lin, anchor for Kitco News. In some cases, like Hungary in 1945, it only took 15 hours for prices to double.

Originally posted on Kitco 

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