as student of history and calamity in economic terms economic meltdown does not guarantee social disorder or riot and mad max world. In hyperinflationary times, most things can be rationed and order is always maintained. Earned income, salary, savings etc are in the crappers as fiat money is useless. In my native hungary during the last depression plumbers worked for gold chain pieces 18k only of course.. So do not discount silver and gold. although guns and ammo along with canned fruits are nice and of course cigs and liquors are second to none......
Same pattern over and over. The Great Theivery: Government confiscates wealth from citizens. Government takes on more and more debt than it can ever repay despite confiscating more and more wealth from its citizens. Government hyperinflates away its debt, debases its currency. What follows is economic collapse or an economy that limps along. Or maybe a bullshit politcal revolution. Cycle repeats.
??? i'm just curious as to why the sudden thought of apocalypse ??? did inflation spark it? on inflation...isn't it better to have debt (w/ fixed interest rates) during inflationary times...i.e., pay off with cheaper and cheaper money?
in mild inflation, debt doesn't matter because the risk premium covers inflation. in moderate inflation, having fixed debt is great because you pay off with cheap money. in marked (hyper) inflation, you can pay off your debts immediatley with cheap money but since money is worthless, you're probably out of a job, etc. the trouble is that a 1-2 sucker punch can occur from deflation and hyperinflation occuring soon after one another, which pretty much wipes you out unless you are quick on your feet.
Israel went through a bout of hyperinflation in the late 70's early 80's. The residents didn't buy gold bars, they bought jewelry. Fact!
how does one get a lot of cash in a hyperinflation situation ... it could be worthless paper but who gives it to me? or is it that interest on my money is so huge that i'd use it to pay for my high-priced slice of pizza tonight as tomorrow that slice will double in price and so would my interest income?