Is the US headed toward hyperinflation?
By kel9111
@kel9111 (60)
United States
July 12, 2011 2:10pm CST
A dollar doesn't buy what it used to, and some worry that the US is headed toward disastrous hyperinflation. And, according to some conspiracy theorists,this isn't an accident.
According to American Economic Institution, a dollar in 1971 was worth .24 compare to a dollar in 1913 which was worth 1. However, A dollar in 2009 had about 4 cents worth of purchasing power on the same scale. Supply is going up while, worth is going down. this is known as inflation. since the dollar is one of the most widely used currencies, so change in it's value can impact the world in surprising different ways.
Inflation and hyperinflation are very different but are similar. Two factor causes inflation, the perception of a value and supply and demand.The dollar hasn't been in the gold standards since 1971 which making it a fiat currency.
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