The possibility of hyperinflation in our country

Hyperinflation is devastating. The rulers have learned. Most of China's banks are state-owned joint-stock banks.

The implementation of the national policy is still relatively rapid. It's just that the decision-making level is a bit sluggish. The currency issuance is as large as 4 trillion in 08.

There are not many RMB circulating in the market. Most of them are in the banks. Whereas, high-energy currencies are comparatively smaller.

The currency ratio is acceptable. Moreover, the burden of life on the people is heavy. There is not much consumption.

This is overcapacity. Keep prices down. Just saw the revenue of the Ministry of Finance reach 10 trillion this year.

Hehe, a lot of people's fat and people's ointment! So as long as the bank deposits don't pour out of the nest. There will be no hyperinflation.

However, currency depreciation is still possible. In the long run, the value of the currency is currently in a stage of controllable and accelerated depreciation.

The issue of the appreciation of the RMB has the potential to trigger monetary tightening. (Everyone knows that the appreciation of the RMB should cause inflation!) That's the result of the inflow of money.

It also sometimes triggers outflows. caused by deflation. It is believed that there will be a slight outflow of funds in the future.

Because now it's in the area of relatively high cash-outs. Because there is still 6% room for appreciation in RMB. So this factor still has to be carefully considered.

To sum up, the probability of hyperinflation is unlikely, that is, a 9% likelihood. That's it, the level is limited to make do with it.

China's M2 will exceed 70 trillion this year, and it will significantly surpass the United States in exchange rate conversion.

The absence of major inflation in the current huge amount of money issuance is due to deformed assets**, especially real estate**.

Assets cannot be unlimited, and once they enter the smoothing zone, they will inevitably lead to collapse, and the central bank cannot have excess RMB, which will lead to the collapse of the real economy.

Excess currencies that cannot continue to hedge assets will inevitably bump everywhere in search of a way out, and basic consumer goods will inevitably be in the process again.

The only way out is for the successful internationalization of the RMB, and the release of water abroad.

Will hyperinflation be inversely proportional to the success of the internationalization of the RMB, and the internationalization of the RMB will inevitably crowd out the seigniorage space of the US dollar, the euro and the yen, and the RMB will inevitably not be freely convertible, what do you think is the chance of the success of the RMB international?

Tactical deflation and strategic inflation, this is the future.

The economy has collapsed seriously, and many things have been seriously affected, prices are also very bad, and everyone's wages are also very low, which affects finance and the economy.

Hyperinflation is followed by a severe depreciation of the currency. The price level will rise sharply. The national wealth will shrink severely, making life difficult for the people.

It will make money worthless, it will affect the exchange rate, it will make people's living standards plummet, and they will not be so active when selling things.

Hyperinflation.

Also known as "superinflation", it is inflation with more than three digits. It refers to the phenomenon that the growth rate of the amount of money in circulation greatly exceeds the growth rate of the currency circulation rate, the purchasing power of money is extremely reduced, the price level is accelerated, and the overall price level is rapidly increasing at a very high rate, so that the people lose confidence in the value of money. When money becomes worthless due to the acceleration of the increase in the amount of money in circulation, people will be anxious to exchange money for physical goods, and the panic will only accelerate the worsening of inflation and bring the economy as a whole to the brink of collapse.

In economics, hyperinflation is a type of uncontrollable inflation that causes money to lose its value when prices are very fast and there is a surplus. There is no universally accepted standard definition of hyperinflation. Generally defined as 50% or more inflation per month, the ratio used in the easing at the time of use will be cultivated.

Most economists believe that it should be defined as "an inflationary cycle without any equilibrium tendency". This type of inflation is relatively rare and is often the result of the devastating social and economic devastation that followed wars and revolutions. In the case of malignant inflation, the currency has depreciated sharply and sharply, completely losing its function as a store, and to a large extent as a medium of exchange.

Normal economic relations.

Destroyed, the economy came to a complete standstill to the point of complete collapse of the financial-monetary system and the economy. These rates of expansion can be so rapid that the number of goods and services can skyrocket over a day, or even a few hours. Money is credibility.

And it is because of prices** that consumer confidence decreases, which leads to the depreciation of the country's currency. Eventually, hyperinflation can cause a chain reaction that can lead to company closures and unemployment.

Rises, tax reductions, etc.

1) Hyperinflation will make it difficult to carry out normal production and operation; Before the Ming Dynasty.

2) Hyperinflation will cause sudden business agitation, rush to buy clean goods, run on banks, and even lead to political turmoil;

3) The worst form of hyperinflation endangers the circulation of money itself, which can lead to the collapse of the monetary system.

Hyperinflation will cause obvious harm to the country's economy, will affect the stability of the exchange rate and financial order, and will make the economic and monetary policies of the first sector ineffective. Because of the rapid decline in the value of the currency, it will continue to shrink the income of the people of the country at an extremely rapid rate, and the livelihood will be seriously affected, endangering the stability of the country. Hyperinflation refers to the acceleration of inflation to the point of worsening, also known as hyperinflation, and usually occurs when a country is at war or in a political transition.

The management of hyperinflation requires the policy support of the first department, through the adjustment of the exchange rate, money supply and other countermeasures. Because hyperinflation is often generated in the process of regime change, it is common for the state to re-establish the economic management system with new currencies and new regulations. The most essential countermeasure is to correctly handle the problem of the budget of the national financial department, change the scale of the country's finances, and also choose more extreme countermeasures, such as salaries and goods** for direct intervention, but only for small area products, then the feasibility will be reduced, but it can still have a certain practical effect on adjusting hyperinflation.

Inflation is due to the fact that the provision of money exceeds the specific requirements of money, and the currency in circulation increases, resulting in the price of money, which in turn causes the continuous and extensive growth of goods over a period of time. Under inflation, you can make money not fall in price through investment, real estate investment, buying, and buying.

1. Investment: There is more money in the financial market under inflation, so the market is generally better, and under inflation, you can pay attention to the purchase: resources, chemicals, agricultural and sideline food, medical services, because soaring prices will cause the growth of commodity spots, which is directly good for these kinds;

2. Buying real estate: Prices are soaring, and it is more cost-effective to have fixed property or products when you are hungry;

3. Buy jewelry: because of the scarcity of gold, the physical object has the effect of resisting inflation;

4. The purchase of **:** is directly invested in the **market, the **market is good, and the income is also worth looking forward to.

Hyperinflation will cause serious harm to the country's economy, will affect the stability of the exchange rate and financial order, will make the best fiscal and monetary policies ineffective, due to the rapid depreciation of the currency, will also make the country's people's income shrink rapidly, and the life of the mu will be seriously affected, endangering the stability of the country. Hyperinflation refers to inflation accelerating to the point of worsening, also known as "hyperinflation", and usually occurs during periods of war or political change in a country.

The control of hyperinflation needs loose and coarse policy support, through measures such as adjusting the exchange rate and currency volume. Because bad inflation often occurs during regime change, it is common for countries to rebuild their economies with new coins and new systems. The most fundamental measure is to deal with the problem of the national budget, change the scale of the country's fiscal deficit, and also use more extreme measures, such as wages and prices to intervene directly, but can only be used for a small range of goods, then the feasibility will be small, but it can still have a certain effect on regulating hyperinflation.