The world is going through some unprecedented economic times where we are seeing a manufacturing slowdown, business closures, and an unemployment crisis.

BUT hidden in the shadows is another massive economic problem. A problem that hasn’t been seen in nearly 100 years, and has been known to cause the downward spiral of some of the most powerful economies in history.


If you wanted to buy something like bread, what would you do?
Well these days, you would probably just go to your local grocery store, pick out some bread, and pay with your card, cash, or phone.

But buying bread wasn’t always this simple.

A few thousand years ago, if you wanted to buy something like grain, you would have to give up something in return like sheep. This was called the barter system and it is how humans used to trade goods before the invention of currency.

But this led to a deep economic inefficiency. What if the person with grain did not want any sheep? Even though to most people, the grain and sheep have equal value, if the grain owner did not want any sheep, then the trade would not happen.


Problems like this are why ancient civilizations in Egypt, Babylon, India, and China came up with a game-changing idea that the world still uses today.
They began using clay tokens that could be redeemed at local warehouses for a select amount of items. Meaning that these clay tokens had value that could be traded at markets instead of having to use the barter system.

This was the invention of modern day currency.


But with the invention of currency came a new kind of crisis that the world had never seen before.


The Roman Empire in the 3rd Century AD had the worlds most advanced banking system that relied heavily upon its currency and coinage. But then a familiar series of events led to the destruction of its financial system.

The first of which was that the Mediterranean began running out of silver, which was an important resource to the roman economy, and was what roman currency was dependant upon. The Second was economic growth of the empire had slowed down for several decades. And Third was that the empire began producing more coins, and making more of its own currency, in order to try and help with its state finances.


The trouble was that once they started overproducing coins, they began to devalue their own currency. So by about 284 AD, the roman empire was going through the first episode of what we know today as hyperinflation.

This hyperinflation caused a dramatic decrease in the value of roman currency, it increased the price of all goods within the roman empire on nearly a daily basis, and also brought a large portion of the middle class into poverty.

This hyperinflation, economic decline, as well as several wars, became known as the crisis of the third century… which is viewed by many historians as the beginning of the fall of the roman empire.


Now, remember, the overproduction of roman currency to combat state spending was one of the largest contributors as to why the empire fell.


So that brings us to today. We are currently facing a crisis in which governments around world are printing trillions of dollars in order to help combat the effects of the lockdowns. Now many people have feared that this overproduction of currency will lead to high inflation or even hyperinflation, which would likely catapult the middle class of many countries around the world into poverty.

However, despite most countries around the world overprinting their own currency, we actually haven’t seen any inflation at all…as of right now.

In the early 1930’s during the worst parts of the great depression, most people would have expected to see some sort of high inflation or hyperinflation which is what typically occurs during bad economic times. But what we actually saw was the exact opposite. During the great depression we saw an example of what is called Deflation.


In fact, some countries around the world are going through a currency problem which might actually be worse.



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