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It puzzles me that so few Americans have taken the present threat to their wealth seriously enough to seek shelter in gold coin investments.

July 20, 2011 – It puzzles me that so few Americans have taken the present threat to their wealth seriously enough to seek shelter in gold coin investments. Then, as I was scrolling down through a series of pictures depicting bank notes from the end times of fiat money from around the globe on Casey’s Daily Dispatch, it dawned on me. American’s have no concept of hyperinflation.

That word should strike fear in the bravest of souls, but whenever I bring it up in conversation it just gets shrugged off. So I decided to take the issue head on, and started asking people what hyperinflation means to them.

To my astonishment the most prominent reply was along the lines of “Oh, we’ve been through inflation before and we always manage to catch up.” Ignorance may be bliss, but it can also be deadly.

They are thinking of runaway inflation – double digit escalation in prices that lasts for just a few years and then cools down. And yes, we have gotten through that before and emerged relatively unscathed. But those were only storm surges, whereas hyperinflation is a mega-tsunami.

For anyone who has not lived through hyperinflation it can be very difficult to grasp the concept, but a few examples from Casey’s list might help.

In 1993 Yugoslavia issued notes for ten billion dinar. We are accustomed to seeing foreign currencies in units of tens of thousands, but this is a million times greater. The note was no less than an official declaration that the dinar had become worthless. But Zimbabwe took worthlessness to a whole new level just a few years ago when the government began printing 100 trillion dollar bills.

Other, only slightly less mindboggling examples abound. In the 1990s alone we saw denominations of 100 million in Bosnia; 10 million in Nicaragua; 5 million in Turkey and Zaire; 1 million in Georgia; 500,000 in Brazil and Angola; and 100,000 in Belarus.

Substitute dollars for any one of those and you begin to get the picture. Now divide the denominations by 1,000 (at most) and you get an idea of what you would pay for a loaf of bread. That’s hyperinflation, the threat is real, and we are not immune by a long shot.

We need not learn the lesson the hard way. People in those countries who clung to their cash lost everything. But those who had the foresight to buy gold coins before their currencies tanked got by just fine.

Kevin Johnson

Senior Staff Writer – GoldCoin.net

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