Hyperinflation has struck already 56 times – Gold Silver Worlds

Hyperinflation has struck already 56 times – Gold Silver Worlds

A history of paper currencies or, perhaps better, a study of inflation, is essential if we wish to understand the role gold plays as money. Almost every irredeemable paper cycle goes through the same stages from birth to death. The cycle begins life with the promise of healing all the country’s economic woes, while promising prosperity for all. It also promises to do this with the least amount of pain and discipline, which is why this phase is so appealing and so seductive. Although the cycle can vary, it appears countries that break free of gold, choosing instead to introduce fiat currencies, go through the following stages.
Stage one is often characterized by unbridled optimism and euphoria. If a country moves off the gold standard, there’s relief, since the fiat system has few restrictions. Fiscal responsibility can move from being a demand to an empty slogan that politicians use to make themselves sound conservative. Initially, there are many promises to print only what a country needs, so as to live within its means. Usually, this period is short-lived, as the temptation to print more currency to stimulate further growth is simply too great for politicians and bankers to resist.