Sunday School: Hyperinflation in Zimbabwe Part 3

by wisdomhunt

Last week I listed the 4 steps that led Zimbabwe to hyperinflation:

1. government spending increased

2. the government used debt to finance the increased spending

3. the government printed money to pay off the debt

4. the people lost faith in their currency

Ask any kook and they will tell you that a hyperinflation situation like this is going to happen yesterday in the United States.


The US government spending is completely in control and will probably never greatly exceed tax revenues because our economy is so strong. Note how spending is only $1.5 trillion higher than revenue:

Besides, government spending makes our economy stronger so that ultimately we can pay back the debt. Eventually. Someday. Maybe.

Government money printing facilitates this stimulative spending and would never become excessive because Ben Bernanke is a genius. Explosive growth is surely right around the corner based on the increase in the money supply:

So the purchasing power of the US dollar will likely stay strong forever and we will never have inflation issues like Zimbabwe. Note the consistently strong purchasing power of the dollar:

So stock up on dollars and sleep soundly, citizens.