Can Inflation Soar To 200% Per Day? Here’s The First Comprehensive Study Of Hyperinflation

Tuesday, August 28, 2012 08:43
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Can Inflation Soar To 200% Per Day? Here’s The First Comprehensive Study Of Hyperinflation

Tags: commodities | currency | debt | inflation

Many, including me, believe that we will see serious inflation in the United States because we cannot afford the humongous debt we’ve incurred. How bad could inflation become?

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The Cato Institute has released its working paper on “World Hyperinflations,” which examines the 56 occurrences of hyperinflation across the globe. The table below is the first of three in the paper, summarizing the 26 worst cases, starting with Hungary’s 207% daily rate in 1945-1946.

 
 
Inflation benefits the borrower at the expense of the lender. For a painfully funny borrower perspective, see the “Saturday Night Live” skit at China Worry.
 
Real assets – precious metals, homes, commodities, etc. – provide some insulation from the ravages of hyperinflation. Are you positioning your portfolios to protect against this possibility? If so, how?
 
 
 
World Hyperinflations, Cato Working Paper No. 8
 
 

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