Inflation, Stagflation and Hyper-Inflation!


Three terms that will likely impact American lives in the near term. Let’s see what each term means…

Inflation – ‘Inflation is the decline of purchasing power of a given currency over time. A quantitative estimate of the rate at which the decline in purchasing power occurs can be reflected in the increase of an average price level of a basket of selected goods and services in an economy over some period of time.’

OK. Yes, I can see that happening in early April 2021. I’ve asked area grocery owners and they’ve all affirmed that wholesale prices are on the march upwards.

Stagflation – ‘Stagflation is characterized by slow economic growth and relatively high unemployment—or economic stagnation—which is at the same time accompanied by rising prices (i.e. inflation). Stagflation can also be alternatively defined as a period of inflation combined with a decline in gross domestic product (GDP).’

In February 2021, the national unemployment level of the United States stood at about 9.97 million unemployed persons. Seasonal adjustment is a statistical method for removing the seasonal component of a time series that is used when analyzing non-seasonal trends. This would equate to a 6.2 percentage figure.

Hyperinflation – ‘Hyperinflation is a term to describe rapid, excessive, and out-of-control general price increases in an economy. While inflation is a measure of the pace of rising prices for goods and services, hyperinflation is rapidly rising inflation, typically measuring more than 50% per month.’

It’s interesting to note that an economy can experience one or any of these afflictions, all at the same time. The key dynamic, right now, for the United States will be to bear witness the levels of ‘printed money’ that might be dumped in any given year. Right now that figure stands at roughly 12 trillion for this year. This amount of money will definitely dilute the value of currency, now in circulation, and will result in a type of inflationary tax on the Middle Class and the poor.

The bottom line; Out-of-control spending will destabilize the US economy to an extent that we will all be impacted in a negative manner by the third fiscal quarter.

About forsythkid

I am just a simple man with a head full of sand who is currently residing in a small town called Forsyth Missouri. I enjoy hiking, camping and all things related to gardening. I rec’d my degree from SIU majoring in Biology many moons ago and still maintain a great interest in the study of all living things. My hobbies include meteorology, the Finnish language and inhabiting cyberspace whenever possible.
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