Inflation
Inflation is the general increase in prices and fall in the purchasing value of money. Hyperinflation is inflation that is very high or "out of control", a condition in which prices increase rapidly as a currency loses its value.
Examples of Inflation in the USA
- A postage stamp in the 1950s cost 3 cents; today's cost is 45 cents (1,500% inflation)
- The median house in 1959 cost $14,100; today's it costs $213,000 (1,400% inflation)
- A dental crown used to cost $40; today it's $1,100 (2,750% inflation)
- An ice cream cone in 1950 cost 5 cents, today its on the dollar menu (2000% inflation)
- A gallon of 90 Octane full-service gasoline cost 18 cents.
- Medicare monthly premiums for seniors were $5.30 in 1970; now currently cost $96.40 (1,889% inflation, and its gone up 70% past 5 years alone)
Relatively speaking, $1.00 in the 1950’s could buy about 10 times as much as $1.00 can in 2012.
Ways to protect your money against inflation
- First of all, make sure you already have 1 years supply food and water!
- Pre-buy things now, that you would normally buy later (aluminum foil, toilet paper, etc...)
- Buy guns and ammo, they hold their value.
- Buy gold, silver, copper, aluminium, they have real value.
- Buy land, there is only a limited amount it.
- Buy a large gas tank and store gasoline (the amount that you normally use in 1 year)
- Exchange bills for rolls of US coins that contain copper, like nickels and older pennies.
The value of your money is always changing. It is directly affected by your countries money supply and productivity of your country.
