What lies ahead will be extremely difficult, painful and unhappy times for many in the United States. The functioning and adaptation of the U.S. economy and financial markets to a hyperinflation likely would be particularly disruptive. Trouble could range from turmoil in the food distribution chain to electronic cash and credit systems unable to handle rapidly changing circumstances. The situation quickly would devolve from a deepening depression, to an intensifying hyperinflationary great depression.
While the economic difficulties would have global impact, the initial hyperinflation should be largely a U.S. problem, albeit with major implications for the global currency system. For those living in the United States, long-range strategies should look to assure safety and survival, which from a financial standpoint means preserving wealth and assets. Also directly impacted, of course, are those holding or dependent upon U.S. dollars or dollar-denominated assets, and those living in "dollarized" countries.
The balance of this special report is broken into the following sections:
* Defining the Components of a Hyperinflationary Great Depression
* Two Examples of Hyperinflation
* Current Economic and Inflation Conditions in the United States
* Historical U.S. Inflation: Why Hyperinflation Instead of Deflation
* U.S. Government Cannot Cover Existing Obligations
* Hyperinflationary Great Depression
* Closing Comments