The U.s. Federal Reserve Should Learn From The Zimbabwe Experience

By Author: Clint Jhonson
Total Articles: 284
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Zimbabwe is a country where almost all citizens are billionaires. This sounds good, right? However, a loaf of bread in Zimbabwe costs more than 100 trillion Zimbabwe dollars so even if you have 100 billion Zimbabwe dollars there is no chance that you can eat a loaf of bread to soothe your hunger fangs. The U.S. Federal Reserve should learn from this hyperinflation by avoiding the temptation to print more paper money. Americans should also protect themselves by investing in silver stocks which hold the promise of becoming a prime currency in the near future.

The Zimbabwe experience is a classic example of hyperinflation. Such economic fiasco could ruin not just the national economy but the livelihood of everyone. The hyperinflation crisis in Zimbabwe started when its government authorized the printing of more paper money, called fiat currency, to pay its national debt. Because of this decision, the value of the Zimbabwe dollar started to diminish fast. Faced by increasing deficit and the need to fund more government spending, the Zimbabwe government again authorized more paper money printing. This poured more ...
... money into the economy which only stoked more inflationary pressures on prices and commodities. To solve the problem, Zimbabwe attempted to print more money but the currency printer was pressured by the German government to stop printing money for Zimbabwe.

Today, 1 trillion Zimbabwe dollars are equivalent to the value of 1 Zimbabwe dollar. Such hyperinflationary situation worsened hunger, economic collapse, and political chaos. Such situation should serve as a beacon to the Federal Reserve. The path of printing paper money with no gold backing to fund government spending is utter suicide. However, all indicators and pronouncements made by the U.S. Fed point that the United States is heading into the merry ways of Zimbabwe. If the trend to print more paper money goes unchecked, the United States can go into hyperinflation leading to economic collapse and the end of U.S. global economic and political hegemony. American citizens however can still shield themselves from the suicidal path taken by the U.S. Fed. The solution lies on silver stocks which hold the key to future economic recovery.

Silver stocks are regaining its historical real values. The correction was brought about by the realization that silver and gold are the only valuable resources that can replace the current fiat currencies. This led to the recovery of silver stocks and brighter prospects on silver and gold investing. So whether the United States government follows Zimbabwe to the grave, ordinary Americans can still weather the crisis through their silver stocks. Such stocks will not diminish in value.

In fact, silver and gold are recognized by the international economic system as reliable resources that have purchasing power. So if you have heavy investments on silver stocks, your purchasing power will still hold despite the erosion of the value of the fiat U.S. dollar. Such simple solution should guide economic planners in recovering the economy from disaster. The Fed therefore should back the dollar with silver and gold and dump toxic assets, debts and wasteful spending.

Know more about the hyperinflationary experience of Zimbabwe: http://www.inflation.us/uszimbabwe.html . Visit our website: http://www.inflation.us/slw.html to get a clear picture of how silver stocks could shield you from hyperinflation.