A few leaders are stating that hyperinflation is on the way. While there are many individuals who point to different figures and state that inflation is here to stay for a while, a few think that hyperinflation is on the way. Now, of course, no one wants to hear that hyperinflation may arrive. It is certainly not a pleasant topic, it brings about reminders of countries like Zimbabwe, Venezuela, Lebanon, and other countries that are not in the best fiscal shape.
The words “hyperinflation” and the “United States” are not supposed to be present in the same sentence. The United States is supposed to be the land of opportunity, a place where one can dream and make progress in their lives.
But more are concerned about government and reckless spending, higher levels of debt each year, and a lack of positive return on investment via tax dollars. While most politicians may seem as if they are not paying attention, business leaders are looking at what is going on and seek to prepare for potential risky scenarios.
One of these leaders is Jack Dorsey, he’s the CEO of Twitter and Square, one of these firms distributes information for many people across the world, the other is financial firm. But while Dorsey has been involved with these two companies, he is also present with bitcoin related endeavors as well.
Here is what he is stating about hyperinflation in the United States.
Dorsey and Hyperinflation in the United States
Twitter CEO Jack Dorsey has warned that the United States could be going into a period of hyperinflation. According to Dorsey, the hyperinflation era will come very soon and change everything in the world.
Dorsey’s warning comes when the country is facing great struggles, particularly in its supply chain. The supply chain crisis experienced in the US has hurt the economy as consumers continue spending more and buying in bulk while businesses struggle to meet demand.
In particular, essential shipping amenities like the Port of Los Angeles, which receives about 50% of the shipping containers in the United States, have experienced tremendous backlogs and significant traffic jams.
What is HyperInflation?
Remember, hyperinflation is a term used to explain a country’s economic period characterized by general price increments on essential goods in a short time.
Worrisomely, hyperinflation increases the rate of inflation by about 50% every month. The rate of inflation in the United States has remained at 2% per year since 2011. However, the country has seen a 5.4% hike in the last 12 months.
Will Inflation Pass After Supply Chain Issues Are Resolved?
Dorsey’s warning on Twitter comes when the country is facing rising inflation. However, some experts attribute the current economic position to the ongoing supply chain crisis.
The consumer price index measures America’s inflation rate. Experts have expressed their surprises as the inflation rate increased by 0.4% in September, which is 0.1% higher than the forecasted percentage as it caused a year-on-year increase of about 5.4% compared to 2020.
A breakdown of the inflation percentage reveals that fuel and food costs made the most significant contribution to this increase. For example, while fuel oil prices increased by 3.9% in September, meat prices increased by 3.3% over the same period.
Nonetheless, there’s hope that the situation will be addressed if the government can solve the current supply chain shortage issues.
But relying on the government to solve problems that they have created in the first place through lockdowns, and other poor policy actions may not be the best approach.