Basic Income Club

Very high inflation, galopping inflation, hyperinflation

System-related this happens every 50 to 80 years at the currencies of the interest debt money system.
The interest debt money system has a built-in self-destruct mechanism, because money only comes through debt and always has to pay interest. As a result, there is a compulsion to produce more and more counterfeit money faster and faster - financial assets and financial debt grow together faster and faster. This process is unstoppable!
The higher the interest rates the faster it comes, the lower the interest rates the longer it takes. So low interest rates do just prolong the bankruptcy of the system!

What means hyperinflation:
Ruinously high increase (50% or more per month) in prices due to the near total collapse of a country's monetary system, rendering its currency almost worthless as a medium of exchange.
Before there is a galloping inflation, prices rise 10% or more a year.
Hyperinflation happens when a money supply increases rapidly but its supply of goods and services do not.
It can be caused by governments (excessive deficit spending), banks (excessive giving of loans) and central banks (printing excessive amounts of money, purchasing state bonds or company bonds and shares);

The beginning:
A country experiences very high and usually accelerating rates of inflation, rapidly eroding the real value of the local currency, and causing the population to minimize their holdings of local money.
The population normally switches to holding relatively stable foreign currencies.
Under such conditions, the general price level within an economy increases rapidly as the official currency quickly loses real value.
And the problem can quickly spiral because when sellers begin to believe that prices will keep going up, they keep raising prices.

Fast decrease of money value:
Savings, amounts on accounts and cash in such a currency become less worth very fast.

The crises at the banking system:
This usually creates crises in the banking industry because deposits dwindle and withdrawals soar.
And all of these factors in turn discourage foreign investment in the currency and businesses using that currency.
Banks and lenders go bankrupt since their loans lose value and people stop making deposits.
If your bank will get close to bankruptcy, all loans will become due for repayment. This condition is written in every loan contract.
But because borrowers can not repay because it affects all banks at the same time, half-repaid houses or indebted companies are taken as pledge.
The proceeds of the sale of such assets will be far below the real value and may not cover the debt obligations.

Company shares become worthless:
Investments in company shares of a stock exchange will become worthless.

Further effects:
Hoarding and stockpiling create shortages of durable goods.
No import of foreign goods anymore, since the cost of foreign goods skyrocket.
Unemployment rises as companies fold, many will be lose their job.
Government tax revenues will fall and it will have trouble providing basic services.