Some practical advice on how to handle a high/hyper inflationary situation were provided in the comments section below the article.
loki
"Willians predictions are sound. Americans will live with high inflation, actually they are already in it without knowing it. It wont be long before the Trilion Dollars Era pass into the Quatrilion Era. I can say from experince that people get used to inflation and can take a lot of price rising for a long time. In Brazil we have high inflation (30 to 100 per cent a year) for decades and then we have hyperinflation (100 to many thousands per cent a year)for many years. My first salary in 1985 was a million cruzeiros and it was the minimum wage. A few months later that much money could not buy a bus ticket. How could be that no revolutions ocurred? The trick is that nobody knew the real cause on the inflation (huge amounts of new money printed by the government), so people blamed businesses for the raising of prices and demanded the goverment to " do something". The government froze prices and people were happy, but then things disappeared from the markets. There were riots and civil unrest, but never agains the real source of the problem, the government itself! In 1994, the brazilian government started to finance its deficits more with tax and debt and less with money creation, so the inflation went down to 5-7% a year. The problem is that the USA government cant do that, debt is already too high and tax raising is too unpopular. So inflation it will be. The dollar will be worthless. Get used to high denomination notes ( We have 100.000 notes here) for a while, but dont worry: the authorities will cut zeros out of money from time to time. Posted by Pedro on 12.25.09 at 13.47
You USians are like kids learning to walk. You have no idea of how to deal with high inflation as we South Americans have.
First of all the going advice is "get out of debt" /// What for? if the dollar tanks you will be paying your debts with a cigarette pack. In South America for a long time the trick was to borrow so that inflation took care of the debt. Dont walk out of the house and leave it.. just stay till you are kicked out. Maybe pay once in a while a bit (about the rent you would pay in some other place) If things happen like John William says debtors will capitalize themselves and settle their debts with peanuts. I repeat, this was the going game in many countries of South America
Second, if you want to hurt the ruling elite STOP BANKING AND USING BANKS. Turn your money into cash as soon as it is credited and boycott the banks. Pay cash. Junk your credit cards and do not consume with them, much less finance yourself with them as they charge outrageous rates... that is unless you plan to stick them with the unpaid balance. This way you will turn the fractional reserve banking trick against them as one dollar out of the system means 9 dollars that are called back in form the system.
Third, barter using your own skills and trade even if it means using the worthless money as a reference for short periods of time. This means do not bill your goods or work. Request cash. This is called underground economy. They want to steal your money from you for their convenience. Learn how to keep it to yourselves. South Americans use this a constantly.
It is not a sin to avoid paying dues to the government mobsters.
The government-critters are playing the game for themselves and their minions. Do you want to keep feeding them? If everybody does it they do not have the means to control and coerce.
Keeping alive and well means you will be able to fight the battle and be there alive and kicking and when the recovery time comes you will be positive for it.. If you follow their system you will be in misery soon and worthless. Pull others into this club. Posted by Oliver on 12.25.09 at 14.39 "
