Hyperinflation is Already Here – You Just Haven't Realised It Yet | Economics Explained

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Hyperinflation has been a doomsday scenario for modern economies throughout the last century. In all of these failed countries (Zimbabwe, Venezuela, Hungary, Yugoslavia, etc.) there have been uniform warning signs, the same signs that we are starting to see today in the U.S.

#Inflation #Hyperinflation #Economics

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[Kima]

As an argentinian I am kinda offended you didn't use us as an example in the intro. We work hard to be on that kind of list, sir!

[xpusostomos]

I accused my wife of being a shopaholic, but she replied that she was just shorting money as a sound financial investment.

[juleeO]

In Argentina we were born into the inflation, molded by it. We didn't see stability until... We leave

[stevenr]

I feel like one very important thing is overlooked, the fact that this is happening to every country around the whole unlike the case studies that u referred to where those events happened to one specific country.

[f-fighterjet]

Now it's time to read the comments and see what the experts have to say.

[karlow]

Oct 2020 - Is Hyperinflation Coming?
April 2021 - Hyperinflation is Already Here
Can't wait for the third act in this blockbuster trilogy

[Rationalific]

As an actual multi-billionaire, I have to agree with the sentiments expressed in this video. (I have a 100 billion Zimbabwean dollar bill.)

[Kopie]

my irish grandpa use to say, there is no inflation when you plant potatoes and veggies and raise chickens and ducks.

Americans: "Hyperinflation is on the horizon"
Me, a brazilian: "So, first time?"

[Smile-dojv]

Just withdrew my life saving and exchanged all my US dollars into the very stable Zambian currency while also buying real estate in the property rights protecting Argentina.

[abhigyanbg]

Yay! We're all gonna be millionares!

[ronpanchotg]

The last part of the video is exactly what happened in my country Ecuador, we used to have our own money (Sucre) but then the stupid bankers broke our economy and we had to adopt the dollar as our official currency. Besides the lost of savings of many people and the huge migration that occurred during that time, the prices of the mortgage were so low that we ended up paying literally 10 cents monthly as a mortgage and that's why our parents could buy houses. As a kid I always wondered why you could pay a house with pocket money but I now understand the importance of having properties instead of cash

[Alexapalm]

Economics Explained: “weird maple money”
Me a Canadian: *angry beaver noises*

[Thenineoh]

"Too Big to Fail, that's like saying too fat to diet" - Robin Williams

[bradleyboyer]

Years ago, I had a guy once ask why we couldn't just give more money to everyone. I laughed at the time. Who knew he was ahead of his time?

[KristinPMosher]

People are affected by inflation far more quickly than they are by a stock or property market crisis because it directly impacts their standard of living. The current level of negative market sentiment is not surprising. To survive in this economy, we urgently need your assistance. The ETF/Equity market continues to fluctuate. My portfolio of $370K is laid bare in ruins

[saxlaxdm]

So glad my medical school debt will be worthless when I graduate!

[kola]

Brazil went through periods of hyperinflation from 1989-1994 (> 1000% y/y at times). Before that, we had 50 years of high inflation (> 2 digits a year). All of our parents and grandparents have been through it. It's really hard for me to process how my parents managed to live with that kind of economy, it seems impossible that you can even survive that. Some really bizarre things happen to your daily life, like having to immediately spend everything you earn in the market and depositing all the rest in the bank so it won't lose all its value. Long queues in all markets and banks, entire rooms reserved for stocking food and supplies at home, dollar black markets.

The main causes of hyperinflation in Brazil were the very high spending by the military government that ruled from 1964-1985 and the uncontrolled money printing after that. At one point, the minimum wage had to be readjusted every two weeks and even then it wasn't enough to keep up with inflation. Bank deposits would yield something like 40% a month, which also wasn't enough to retain all value. Many economic plans were tried in the late 80s and early 90s to solve the problem, none of which worked. Price freezes would make items vanish and new currencies would spiral into nothing in a matter of months. In 1990, the first democratically elected president after the military dictatorship literally took all the money people had in the bank, promising to return the nominal value in the next years. Of course, the nominal value was worthless after a few weeks so effectively most people lost all their savings. He was later impeached.

The Real Plan was the one that actually saved the Brazilian economy. Economists recognized that chaotic money spending and printing, plus the psychological effects of inflation (inflation expectation generates inflation; they called it 'inertial inflation') were the causes of turmoil. The government adopted the Unit of Real Value (URV), which didn't serve as official currency initially but instead as a stable indicator of the value of things. Even though the official currency at the time (Cruzeiro) quickly inflated, the URV stayed the same. All prices had to be labeled in Cruzeiros + in URVs. This was really a psychological war against inflation, since people began noticing how prices were stable in URVs.

Eventually, in 1994, the government announced the currency would change from Cruzeiro to Real, 1 Real being equal to 1 URV. Along with that, several measures like the prohibition of money printing to pay for public debt and laws of fiscal responsibility were adopted, so hyperinflation is structurally inhibited. From night to day, like magic, hyperinflation disappeared. We use the Real up to this day and it's a legitimate reserve of value (albeit not perfect).

[sk_bort]

Biggie Smalls predicted it decades ago: "Mo money, mo problems"

[matthewr]

The price of everything has been going up over time, I am almost 55 years old, rent, drive a Prius and the cost of new cars and home are unaffordable for me. Both my neighbors are over 70 years old and still working.