HYPERINFLATION – Chicken or the Egg

Iran, North Korea, Argentina, Venezuela, Egypt and Syria have all one thing in common – the collapse in the confidence of their currencies. This is where we will see hyperinflation and this is what it is all about. HYPERINFLATION is by no means related to the quantity of money, it is directly related to the confidence in the currency. This is the chicken or the egg scenario. The hyperinflation takes place BECAUSE of the decline in trust and confidence in government. It is not the other way around. Governments do not hyperinflate for no reason. They hyperinflate because people lose confidence and they cannot issue bonds for nobody will buy them. This is what we will see in these countries.