Can Hyperinflation Happen in the USA? | Phil Town

Thank you to everyone who attended the premiere of this video! The chat box closes for me once the video ends, so if I didn't get to your question, please leave it as a comment below. There were a lot of good ones coming through ⬇

If you're just tuning in, let me know you're thoughts on hyperinflation and if you think the US economy is at risk in the comments!

Thanks man. Physical gold and silver are great to hold if there’s hyper inflation

See my precious metals and bitcoin channel too I’m a value buyer like you. Buy when others are fearful

The best thing to buy in a high inflationary environment is Gold/silver/commodities
Everyone needs to eat and needs fuel, If you exchanged your deutchmarks for gold/silver
in 1919 after Germany lost the great war then you would have been miles ahead.
ANY economy goes into a Barter system when inflation gets too high, maybe
30% or more. The US dollar is stable now, but if there is a massive sell off in the
world markets of the US dollar then the worst could happen. We dont have the dollar
pegged to gold now, but it is pegged to a barrel of OIL. Yes, oil is the real trading
medium now. And, since the US has the biggest/best military in the world any
pizzant dictator that wants to use something other than the US dollar to trade with
will get wiped off the map………just ask Saddam Hussian. Hopefully the Arabs
took note of what happened in Iraq and would never even think about not using US dollars
to trade their oil.

I certainly appreciate you doing a video on this topic. The public is completely ignorant about hyperinflation and inflation in general. However, the information is confused in the sense you have equated what took place during the Great Depression (major DEFLATION occurred until 1933) with an inflationary environment. YES, 1932 (the stock market BOTTOM) was a great time to buy stocks and some great fortunes were created as a result.

One UNIVERSAL response to hyperinflation is govt price controls on goods and service. Indexation (the problem in Hungary) is frequently engaged in as well. Even Nixon implemented prices controls in the US in the early 1970's when the inflation rate was very minor. Govts make it difficult for companies to make money during high inflation.

Hyperinflation has more than one definition. The most extreme (50% inflation per month) is. almost without exception. used by governemental authorities and the media. US accounting standards, however, define hyperinflation as 100% inflation during a 3-year period.

There have been two major epicenters of hyperinflation globally — Eastern Europe and South America. Some countries in Eastern Europe experienced 3 hyperinflations in a hundred year period. Hungry is indeed the world winner with an octillion percent hyperinflation rate. The first hyperinflation in history took place in the Roman Empire.

Hyperinflation is extant in the USA NOW and going on many years now and not some mystical "threat." A hyper-INFLATING economy contains the following realities:

Soaring gold prices
Soaring stock prices
Plunging yields/soaring values in debt
Soaring levels of crime
A rush into physical US cash dollars(an irony to be sure)
A rush into batteries

In a highly advanced economy such as the USA there is what is called on Wall Street a "mispricng of risk"(or "mispricng or reality" for those of us experiencing soaring prices and having to pay for that). A good example would be silver of which one single ounce is dirt cheap in US dollars. Another example is coffee who's wholesale price has collapsed.

The typical end to a hyper-INFLATING economy is a massive debt default…something far larger than Lehman Brothers. $db duetsche bank, an actual German Government entity, the City of London, the City of New York…the State of Illinois, Russia.

DEMAND PAYMENT OF INTEREST FOR YOUR US CASH DOLLARS!
THEY ARE VERY VALUABLE IN A HYPERINFLATION AS "EVERYONE IS DOING IT!..

I live in Venezuela and sadly this is normal for us now. It is a terrible terrible thing because no matter what you do, your income gets reduced every day. I really hope for you guys living in other countries that never get the chance to live this.

Anything is possible but it would take inside traitors in our nation to cause fear and lose faith in our money. I already see we have the traitors in our government.

25% gold, 25% stocks (dividend, high quality company), 25% bonds (government), 25% cash. Rebalance every quarter. If gold goes up and stocks go down, rebalance to get the 25 to 25 again by selling gold and buying more stock.

I cant imagine what would happen to bitcoin's price if hyperinflation would happen in the U.S.!

status as world reserve currency increases the risk of hyperinflation even more

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I am not sure the US$ will ever go into hyperinflation. A total degeneration in trust in the governance is required to get it there, and there are many more to pick from. I also do not see any other country outperform the US in productivity, like South Africa did in the 70’s. One issue is the dollars in circulation/credit. The stock market smells of printed money. This could mesn that people will first loose trust in the true value of stock. The dollar will pump when the market crashes, and shortly after there might be a run to gold, and even Bitcoin, to try and store value when. Especially if any of the banks start to fail agan.

4% incoming for gold. 6% income for silver. Keep stacking up to a point where you can guarantee 1 year of minimum expense without working. (30K net worth of gold and silver maybe okay.)

Inflation isn’t a concern….. I am more concern with deflation like japan…

Hey Phil! First of all, I wanted to say that I love your videos, I've been following your channel for like a year now.
I wanted to ask you, how do you truly figure out if a company is overpriced or not? Is it a mixture of key indicators? Feeling? Or does it exist like a "sacred formula" that tells you something like: 'if it's below this value, then it is overpriced'

Thank you very much in advance for your answer (maybe make a video on that matter?)

Keep up the good work!

I just don't understand what other people would get to wheelbarrows full of money it doesn't make sense to me

STOCKS? in a hyperinflation environment ? your joking right,, expect returns on your stocks in 30 years,,, like japanese companies who have not seen levels of previous highs in 30 years,, good luck phil town there going for your roth IRA and pension fund first,, bail in anyone ?

No it is not possible get real

I wish we never went off the gold standard we would have even more wealth.

I believe deflation is more likely, all money is debt even printed money, deflation is a seizing of the economy, stay liquid and stay out of debt the best you can.

I am not even going to watch this. The us is already in hyperinflation.

Hyperinflation in the dollar is not likely while dollar is the predominant currency used across commodities and oil and trade. A dollar hyperinflation would be a global hyperinflation which shows up in gold. But high inflation has already hit people globally. Instead of consumer price inflation there is inflated asset prices

The money supply was quadrupled after the housing crisis. The only reason why that worked was that the fed assured everyone that they would unwind the balance sheet and pull it back out. As soon as they started the stock market tanked. If they don't pull the money out then we will at least devalue the dollar by 75% based on known economic laws. We can't even have 3% interest rates without crashing the economy right now. Everything is at an inflection point but it is unprecedented because if the dollar is garbage then what does that make all the other fiat currencies.

What saved us in the 1970s was that they tied the dollar to another commodity, oil. And because the world was industrializing every year the world consumed more and more oil which meant they could print more and more dollars. Effectively enslaving the rest of the world because while we could print dollars out of thin air other countries had to provide us actual products for dollars. The whole system is now short circuiting and that is why you see america sanctioning other countries effectively using the dollar as a weapon. The UK just stole Venezuela's gold while other countries are repatriating gold and stock piling it. Not because gold is a good investment but because it is a store of value. It's a mess and it is going to blindside everyone who saved for retirement.

What is the alternative, just to never have interest rates above 3% again. When the market crashed a few months back you cold see money flowing from tech stocks and riskier assets to utilities and established blue chip companies like coca-cola. This trade war is going to cause an instant 15% increase in all products we buy from china next month if a deal is not reached. I hope stocks go on sell and it is not the end of capitalism or america.

Min 4:27 the most somethings can lose in values it´s 100% so… losing in value quadrillion % is not valid 🙂 MR. Phil!

Not only can hyperinflation happen in the US… it’s already happening

'the united states is the strongest economy in the world' you clearly do not understand anything of economics, you have the biggest fake economy of the world and it will pop soon

Referring to Venezuela as "….our partner to the South…." was hilarious – kind of empty headed. Not as moronic as quoting a statistic such as the value of a currency (Hungary's) reducing in value by a "quadrillion percent" Hmmm. If the value of something was X yesterday and is dead zero today – as in worth NOTHING – then we can say the value of that thing declined by 100%. In other words, nothing of value can reduce in value by more than 100% from one point in time to another. Bottom line – this v-log is not something to take seriously – as in – OF NO VALUE – as in – I feel like my understanding of hyper-inflation declined a billion percent after watching this. Thanks for the laughs though!!

Hi Phil, thanks for the education, I'm from Ghana and I have read the rule #1 and currently reading the payback time. thanks, I have been trying to register with a broker in the US but it's like all the brokerage accounts are limited to the US citizens. Phil, is there a way you can help me register with any broker in the US, or better still suggest any broker for me to register with. Thanks

Well, usually hyperinflation happens not when the economy fucks up, but when politics fucks up.
If the president/congress would start interfering with the work of FED, and starts manipulating the money supply for short term political gains, hyperinflation might happen.

But high debt alone is not enough.

I get triggered when you say something has "decreased" over 100%

Good vidéo!

I have lived hyper inflation twice in Zimbabwe 2003 to 2008 and 2016 to 2019 our government just keeps spending money it doesn't have

The value of a currency cannot decrease by more than 100% at which point it is worthless.