The Tale of Three Currencies

 Steve Hanke reports: 

Today, Venezuela's Bolivar depreciated past the 2,000,000 VES/USD mark for the first time EVER. This has fueled sky-high inflation, which I measure at 2,370.79%/yr. If Maduro ever wants to escape hyperinflation, he must officially dollarize, NOW.

And this:

Lebanon's egregious inflation is causing widespread “prisoner unrest as essential food & medical supplies dwindle.” With more than 3,000 prisoners set to starve, #Lebanon’s only hope is to establish a #CurrencyBoard, as I did in Bulgaria in 1997.https://t.co/OKLFWaWafe

— Steve Hanke (@steve_hanke) March 29, 2021

 This is what happens when you print money at an out-of-control rate, but, but...what about the dollar?

Steve Hanke reports:

Since last year, the Fed has been injecting monetary fuel into the economy by monetizing the government’s debt. There is no end in sight. The Fed is totally committed to monetizing the U.S. government’s debt.

The United States situation is nothing like that of Venezuela or Lebanon, but Federal Reserve monetary policy setting members are acting as though massive money printing (which is the result of monetizing U.S. government debt) will not have any price inflationary consequences.

In other words, irresponsible money printing is in the air, it is just a matter of degree.

Hug your gold coins.

-RW