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Actually, there have been quite a few around the world
Posted on: February 21, 2020 at 22:23:16 CT
JeffB MU
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and the US has not been immune.
Here are some hyperinflationary episodes from around the world:
https://en.wikipedia.org/wiki/Hyperinflation#Notable_hyperinflationary_episodes
The US actually had a couple of those. Our first currency was the US Continental. Like all other fiat currencies, other than the current ones that haven't been completely devalued yet, it went bust. In fact there used to be a common phrase, "not worth a Continental".
The other one was the Confederate dollar. Wars are often the stressor that cause a country to start "printing" more of its currency. The US has been inflating its money supply for decades, especially after it went off of the gold standard completely under Nixon. Wars did that to the US both times currencies here went belly up.
Inflation took off in the 70s & 80s because of the big jump in government spending on Johnson's Great Society and the Vietnam War. I bought my first house in the early 80s. I assumed a VA loan at 13.5%. Everyone thought I had gotten a great deal as the going rates were higher than that. Inflation had been in the double digits.
The Fed raised interest rates a lot causing a recession, but they finally dropped inflation rates to less painfully dangerous levels.
The number of other countries that have destroyed their economies for at least awhile is very large. At one time Great Britain was the undisputed world power. It was said that "The sun never sets on the British Empire." But later they became known as "The Sick Man of Europe.".
People never think that it can happen to them... but it does.
Here are some hyperinflationary episodes from around the world:
https://en.wikipedia.org/wiki/Hyperinflation#Notable_hyperinflationary_episodes
The US actually had a couple of those. Our first currency was the US Continental. Like all other fiat currencies, other than the current ones that haven't been completely devalued yet, it went bust. In fact there used to be a common phrase, "not worth a Continental".
The other one was the Confederate dollar. Wars are often the stressor that cause a country to start "printing" more of its currency. The US has been inflating its money supply for decades, especially after it went off of the gold standard completely under Nixon. Wars did that to the US both times currencies here went belly up.
Inflation took off in the 70s & 80s because of the big jump in government spending on Johnson's Great Society and the Vietnam War. I bought my first house in the early 80s. I assumed a VA loan at 13.5%. Everyone thought I had gotten a great deal as the going rates were higher than that. Inflation had been in the double digits.
The Fed raised interest rates a lot causing a recession, but they finally dropped inflation rates to less painfully dangerous levels.
The number of other countries that have destroyed their economies for at least awhile is very large. At one time Great Britain was the undisputed world power. It was said that "The sun never sets on the British Empire." But later they became known as "The Sick Man of Europe.".
People never think that it can happen to them... but it does.
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Actually, there have been quite a few around the world - JeffB MU - 2/21 22:23:16