HOW & WHY MONEY DIES // Who wins & loses from INFLATION & HYPERINFLATION

Adam Ferguson’s take on this is that in order to hyperinflate the key factor of trust has to be lost. That this isn’t something that occurs overnight, but happens progressively over a period of time.

In most examples of hyperinflation it has taken a concerted effort to bring about the collapse, that prior to the collapse there are individuals warning of what is likely to occur.

As Adam Ferguson states it gets to the point where it becomes politically impossible to halt inflation that the necessary steps are too drastic and painful to implement that the road towards inflation and subsequently hyperinflation is the only way forward.

Central bankers without exception know how monetary theory works and what causes inflation and so the only plausible reason that they could possibly follow a highly inflationary route would be for political purposes.

One cause of this is that a country is simply unable to grow its way out of debt, the level od debt is so impossibly high that it can be repaid and instead chooses to inflate away its debt.


📘References:

When-Money-Dies-Nightmare-Hyper-inflation, Adam Fergusson, 1975

Ruffer.co.uk https://www.ruffer.co.uk/en/thinking


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