Recently I have been concerned about the increased deficit spending by the Obama Administration. The risk of inflation, even hyperinflation, seems to be in our future. With a little study I was surprised to learn scores of countries have experienced hyperinflation.
In November 2008, Zimbabwe had a monthly inflation rate of 79,600,000,000% and an annual rate of 89,700,000,000,000,000,000,000%. The daily inflation rate was 98% and prices doubled every 24.7 hours.
Even these horrendous numbers do not equal those of Hungary in 1946 that had an daily inflation rate of 195% with prices doubling every 15.6 hours. Other notable hyperinflators were Yugoslavia in 1994 with prices doubling every 1.4 days, Germany in 1923 doubling prices every 3.7 days, Greece every 4.5 days (1944), and China every 5.6 days (1949).
One would hope that we are not headed for the same fate as Zimbabwe. Perhaps this November, by voting out of office members of Congress that are the worst spenders, we can strengthen the dollar and make it worthy of reserve status.