Q said gold will destroy the Fed. It might be happening, as the BRICS leaders announced a gold-backed monetary system today. The end of the US $ as reserve currency is approaching.
Although we are looking to the rainbow on the other side of this storm, during the transition we in the US can expect financial hardship like we've never seen before. Hyperinflation is a very real possibility.
There are many questions to ask, answer and discuss. I encourage Anons to share their insights. Here are some starter questions that are on the mind of many (and I don'thavethe answer)
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If we have hyperinflation, how does it actually work? Suddenly there will be $10,000 bills, but how do you get them? Do you go to the bank and turn in your $100 bills and get $10,000 bills (or whatever the new denomination is)?
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If you have been stacking gold and/or silver, how do you use it?
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If you have a mortgage with a fixed rate, can you pay it off with new denominations, or does the amount of your mortgage increase to reflect the new denominations?
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Is it wise to max out a credit card before hyperinflation because you can then pay it off with hyperinflated dollar denominations?
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What does day to day living look like?
The value of your dollars collapses during hyperinflation. You don’t exchange money for more money, you go make more money. You should probably brush up on how money and inflation actually works.
I was asking the questions on behalf of those not familiar with how it works.
The only thing I cannot understand is how the larger denominations enter the market. For example, let's say we need a $500 bill because no one can carry around ten thousand dollars for a hamburger, so we have larger denominations printed. The notes are printed and distributed to banks... so if you have $10,000, you can go exchange it for 20 $500 bills. Easier to deal with.
But most people don't have the $10,000. And employers are not going to hyper-inflate wages to keep up withe hyperinflation of the dollar. It's just not going to happen. So, suddenly everything costs waaaaaaaaay more, but most people do not have the money for it. And going out and working for more money is probably not going to happen because the employer doesn't suddenly have more money. The employer might try to charge more money for its products so that it can then pay its employees, but the buyers of those products don't have the money, either.
So who has the wealth to sustain the hyperinflation? Why wouldn't everything just stop? That's what I don't understand.