What in the world is hyperinflation? Here is an explanation from dictionary.com: A very high level of inflation that tends to result in the breakdown of the monetary system, the hoarding of goods, and difficulty in achieving real economic growth.
Hyperinflation is commonly defined as when the rate of inflation exceeds 100% annually. The classic case of hyperinflation occurred in Germany during the 1920s. Hyperinflation, which tends to motivate people to own real goods, adversely affects security prices.
What is the probability of hyperinflation in America? I’m not sure. It depends on which day you ask me. Is there a recent precedent for this? Yes. This happened in Russia in the early-to-mid 90’s. This also happened in Argentina in the 80’s. As late as 2008, Zimbabwe also experienced the devastating effects of hyperinflation. I wouldn’t get overly excited about this just yet, but don’t just dismiss it as conspiracy theory.