💸 The Real Cost of Printing Too Much Money

In partnership with

Solving a Silent Threat to Your Health

Chemical pesticides are being used in our food, homes, and offices. But Med-X has developed a 100% chemical-free pesticide that outperforms traditional solutions. It’s one of the fastest-growing products in professional pest control, with operators using it coast to coast across the USA. E-commerce partnerships with brands like Amazon, Walmart, and Kroger are now helping Med-X reach 41 new global markets in the next five years. For a limited time, you can become a shareholder as they make these moves.

Invest in Med-X Now

Welcome Back, Future Funder!

Ever wondered what happens when a country prints too much money? Or how the economic fabric of a nation can unravel, seemingly overnight?

Today, we’re diving into the cold, hard numbers behind hyperinflation. No fluff, no filler—just the facts. The collapse of Zimbabwe and Venezuela offers us stark warnings. By examining their financial missteps, we can better understand what happens when governments go too far.

Bon a petit! 🧑‍🍳

Hyperinflation Case Studies: Lessons from Countries That Experienced Extreme Inflation

📉 Hyperinflation: The Facts Behind the Collapse

Let’s start with hyperinflation itself. Defined as inflation exceeding 50% per month, it’s a phenomenon that has left entire economies in ruins.

To put it in perspective, the U.S. has averaged inflation of just 1-3% per year over the last few decades. Now imagine prices doubling not in a year… but in a matter of weeks. That’s hyperinflation.

Zimbabwe: When Money Lost All Meaning

In the 2000s, Zimbabwe faced one of the most extreme cases of hyperinflation in modern history.

By 2008, inflation had exploded to an incomprehensible 79.6 billion percent per month. The government printed 100 trillion Zimbabwean dollar notes, but even that couldn't buy basic groceries. To make sense of this, consider this: Zimbabwe’s money supply grew by 20,000% in 2008 alone.

How does that compare to a stable economy? In the U.S., the money supply typically grows by 3-5% per year, closely tracking economic output. Zimbabwe, by contrast, flooded its economy with money without creating real value. The result? Currency collapse.

And why? The government kept printing money to cover budget deficits, all while agricultural output—once a backbone of the economy—plummeted due to political mismanagement.

Venezuela: When Oil Couldn’t Save the Economy

Venezuela’s downfall tells a similar story, but with a different catalyst. Between 2013 and 2018, the country’s inflation rate soared past 1,000,000%. The bolivar lost 99.99% of its value.

The government printed money at such a rapid pace that Venezuela’s money supply surged by 57,000%. But this avalanche of currency wasn’t backed by economic production. In fact, Venezuela’s economy shrank by 70% during this same period.

For Venezuela, the crash of global oil prices in 2014 sent the country into freefall. Oil accounted for over 90% of government revenue. Without diversification, Venezuela was forced to print money—leading to a catastrophic collapse.

🔍 Modern Economies: Are We Safe?

Now, let’s talk about the elephant in the room—could hyperinflation happen elsewhere? In response to COVID-19, the U.S. Federal Reserve injected over $3 trillion into the economy in 2020 alone. That single act increased the U.S. money supply by 25%.

Here’s some context: typically, U.S. money supply grows by 3-5% per year. The sudden 25% increase was necessary to avoid recession, but it also fueled the highest inflation rates the U.S. has seen in over 40 years—peaking at nearly 9% in 2022.

Does this mean hyperinflation is on the horizon? Probably not. But it’s a reminder that excessive money printing, when not balanced with real economic growth, always has consequences.

🌍 Global Watch: Where Are the Risks?

While hyperinflation isn’t a direct concern for the U.S. right now, other countries are edging closer to the brink.

In 2022, Turkey’s inflation hit 83%, fueled by aggressive monetary policy and political interference. Argentina continues to struggle, with inflation topping 100% in 2023. The lesson here is clear: When governments print money without discipline, inflation inevitably follows.

Key Insights:

• Excessive Money Printing Always Leads to Inflation. Zimbabwe and Venezuela are extreme cases, but they prove one thing: when a country’s money supply grows far faster than its economy, the value of that money evaporates.

• The U.S. is Not Immune to Inflationary Pressure. The pandemic response required massive stimulus, but ongoing monetary expansion must be carefully managed to avoid long-term inflation.

• Diversification is Key. Venezuela’s reliance on oil left it vulnerable. Whether for a country or an individual, diversifying income sources provides stability in uncertain times.

Cheers to getting 1% better each week 🥂