I debated heavily about what to discuss today. The astonishing 1000 point drop in the US equites market this morning is a direct result of the attempt by governments and central banks around the world to prop up a fledgling system on the verge of another great recession.
After reading a recent report about Venezuelan smugglers clashing with the Army my mind was drawn to the great harm hyper or even rampant inflation combined with government controls can have on an economy.
The smuggling problem in Venezuela is a direct result of both hyperinflation and the government’s attempt to control panic buying and selling through price controls and rationing. The big question is, could it happen here and if so are we getting close.
Today I set out to discuss these issues and provide you a blueprint on what to look for. Naturally none of us can know for sure WHEN or even IF a catastrophic event like hyperinflation might occur but we can look to other nations where it has happened and look for s