Friday, January 16, 2009

Hyperinflation in our future?

Hyperinflation in Zimbabwe is so high that with 500 billion Zimbabwe dollars you can buy three eggs. That is because their government printed too much money. In the US a similar problem is happening. The euro used to have less value than the dollar, but from 2001 to 2008 the dollar lost 60% of its value against the euro. This is because we print too much money.

Our current severe recession helps mask the effect, but soon prices will rise and people will get crushed. Remember that real estate went down, stocks went down, soon due if hyperinflation the dollar will go down. The future price of eggs is a lot more than now.

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