Hyperinflation in History; And The Starving Billionaire

I wanted to share with the Leo Community a very interesting table below from the Federal Reserve Bank of Dallas.

The table gives the hyperinflation in history. In the last 100 years, there have been 29 instances of hyperinflation.

Why is this relevant?

This is an indication of the point that central banks often resort to reckless money printing. When that happens, the value of paper money declines against assets that cannot be increased in supply at the same pace.

As an example, Bitcoin has a limited supply of 21 million (correct me if I am wrong).

However, there is no limit to the amount of dollar that can be printed. The dollar has lost 96% of its value since 1913 (creation of Federal Reserve) and will continue to lose value.

As U.S. government debt surges, it might not be long before additional debt is issued to service existing debt. This is inflationary.

I am not suggesting that U.S. will see hyperinflation. That's unlikely. However, the country can witness high to very high inflation.

Keep investing in assets like gold, silver and bitcoin.

## ##### ###### It's important to remember that purchasing power matters. Not the amount of money in hand.

The picture below from the Federal Reserve Bank of Dallas (annual report 2011) tells the story.

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