Silver Dollar Economy

Hyperinflation : How Will It Affect You?

It is only a matter of time, and not so far into the distant future, that hyperinflation will affect everyone in the world.

To understand what hyperinflation is you need to get a better grip on how money is produced.

In essence as a country prints more of its own currency the less real value the currency has, unless it is backed by a physical tangible asset that is respected around the world such as Gold and Silver Bullion.

Without this tangible asset to back the currency being printed the value of the currency itself is devalued on the world market.

When a country starts to print vast amount of money like the proposed USA’s QE4 (Quantitate Easing) the reason behind it is to try and stop a complete economic and financial breakdown of that particular countries currency and the economic factions surrounding it.

Unfortunately what many people do not understand is that these measures are only a temporary issue to the problem and without an increase in a countries GDP (Gross Domestic Profit) to offset the amount of interest on the money that is printed the entire system will collapse and hyperinflation is inevitable.

When a countries GDP begins to decline it is usually because average consumer can no longer afford to be purchasing many of the consumer goods that manufactures are producing.

With a decrease in consumption their also comes a decrease in manufacturing of these consumer goods, as producers realise that an oversupply of any particular goods will devalue their goods even more. The more a particular good can be accessed in the market place the less value it has and this includes any currency.

Mass production means cheaper production costs and an end product that is less expensive, but when manufacturing slows and goods become harder to find it is inevitable the prices will soar.

This in turn will see many job losses as manufacturing and consumption decreases. As a result of these job losses many more individuals will not be able to afford these now highly priced, harder to find goods.

China Daily 11/24/2010

St. Petersburg, Russia | China and Russia have decided to renounce the US dollar and resort to using their own currencies for bilateral trade, Premier Wen Jiabao and his Russian counterpart Vladimir Putin announced late on Tuesday.

If countries like the USA continue to print trillions of dollars that are not backed by any physical assets investors who hold stocks, bonds and treasury notes that are backed by the US dollar will begin to dump them for more physical, tangible assets like Gold And Silver Bullion that are protected from the resulting hyperinflation issues surrounding the collapsing dollar.

As hyperinflation kicks in globally many resources will also soar in price, these resources are core to all production and the end consumers cost for these goods.

In many ways it is not that things get more expensive but more to the point that you need more and more of a devalued currency to purchase them.

This is why many smart minded investors are moving into Gold and Silver Bullion now to protect their money. As hyperinflation kicks in physical assets like Gold and Silver will continue to rise in price, and those people that have bought these assets, before the world hyperinflation scenario kicks into full gear, will actually be increasing their overall wealth while a majority of consumers will be end up broke, bankrupted and destitute, losing everything they ever had and with almost no way to recover from it.

Don’t get caught out, start right now to protect your wealth and your future by investing in tangible assets like Silver Bullion while you can still afford to do so!