Are you interested in knowing how to survive hyperinflation? That’s one of my interests, especially since the recent inflation we’ve experienced in the United States after 2020. Inflation has always been on my radar because I want to be prepared for it. Other countries have experienced hyperinflation over the years, so one way to prepare is by learning from those countries.
Important questions
My main interest in reading this book was to answer two questions. What’s it like to live with hyperinflation, and how do you survive it? The book did give some answers to those questions. It also included some related information that I wasn’t specifically looking for but did find interesting.
Living with hyperinflation
The authors provide some good insights into what it’s like to live with hyperinflation. They talk about some of the warning signs preceding the crisis. Some of these were government promises of social security and benefits for veterans. War expenses also contributed to debt spiraling out of control. A market crash in 1997 was known as Black Friday led to increased money printing and devaluation of the currency. As the people became skeptical of their national currency, the government increased their control by mandating the currency must be used. Foreign currencies were not permitted, and the government was complicit in seizing land from some of the population. As I read this, it was clear to me that some of these warning signs are already evident in the United States.
Government control
One of the things I found interesting about the book was the Zimbabwe government’s implementation of price controls. They also had an aversion to the population using cash. Cash was not easy to control, so it was made illegal to make large transactions in cash. Holding large amounts of cash was also not permitted as the authorities tried to force the public to put their money into banks and limit how much they could withdraw. This is something you might see in a hyperinflationary period. Think about the parallels with some of the authorities pushing for a digital currency in our own times.
Government shutdown. Eventually,all government services were shutting down with the exception of law enforcement. The book points out the effect this had on municipal services such as water, sewage, and electricity. Scarcity led to increased crime.
Effects on the economy
Also important from the book were the effects of hyperinflation on stores. Many stores were forced to shut down. One result of this was mass hunger and increased reliance on the same government which caused the problem in the first place.
Shortages of food, fuel, soap, and various personal items. Scarcity was common.
People fled the country for other countries. Those on pensions saw their income lose virtually all it’s purchasing power. As the currency was devaluated, the citizens had to spend their earnings as quickly as possible to avoid it losing all value. Eventually, the Zimbabwe currency was worthless. Increased government control was a sign of the times. Black markets thrived.
Solutions for the average person
Community and relationships were important. The religious community and other groupings of people tended to do better.
The chapter I found the most useful was titled, “Get Prepared.” It offered various bits of wisdom for how to survive this crisis. Everything from leaving the country and starting fresh somewhere else, finding solutions in relationships and community, storing your wealth in non-traditional methods generally outside the banking system. Not relying on pensions, storing wealth off-shore, realizing the benefits of borrowing instead of lending while taking into account the ethics of this.Avoiding holding cash for long periods. Considering bartering.
Summary
Overall the book offers good advice and is a starting point in preparing for hyperinflation. Remember that hyperinflation is a temporary condition, but severe enough to destroy lives. I recommend the book.
You can find a copy of the book here.