Think Zimbabwe a moment. This is the most recent example of a hyperinflationary depression. Basically in Zimbabwe the black nationalists ejected the white farmers and replaced them with locals who could not farm, crashed the economy and started printing money. Hey presto! Rampant hyperinflation and a very depressed economy.
The problem with printing money to solve economic problems is that once started it is very hard to stop. It is always easier to print more than deal with underlying issues such as over-spending and a government-dominated economy. Democratic politicians like turkeys do not usually vote for Thanksgiving.
Monday, January 14, 2013
What Is A Hyperinflationary Depression And Could It Happen? Goldseek
What Is A Hyperinflationary Depression And Could It Happen? Goldseek
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I was in South Africa in 1981 and met a number of white families that fled Zimbabwe who were living in campgrounds in tent trailers. They lost everything and the new government managed to destroy what was once one of the bread baskets in Africa within just a couple of years.
ReplyDeleteIf anyone wants to see what the ultimate fate of a socialist economy is - just look to Zimbabwe and it's 30 years of Marxist misery.
Indeed PW great example. This Country and Its leaders are a joke, and what do Americans do?
ReplyDeleteNothing.