The country of Argentina also experienced a period of hyperinflation in the early 1980's. This period caused governmental and civil unrest in the country. Several attempts were made to handle hyperinflation - from increasing the numbers on the currency to starting new currencies with the offer of exchanging millions of the old inflated currency to one new currency. Also pegging the peso to the U.S. dollar was also attempted. The late 1980's and the 1990's continued with economic unrest. Today in the twenty-first century, although hyperinflation is somewhat held at bay, Argentina's economy still suffers and is very unstable at best. It remains the most unstable currency in South America.
The Pre-WWII German Marks or Deutsche Marks are another example of Fiat Currency that went awry. During the time between WWI and WWII the German economy went bust. The economy had considerable debt to pay for World War I and the amount of gold to stabilize the currency and pay for debts quickly dwindled and created instability with the German commerce. The wealthy class did not want to pay any taxes or pay any more than the minimum. The poor people preferred that the taxes fall on the wealthy - especially those that started the First World War. Others expressed that everyone should share the burden. The result was the government didn't do anything so the economy began to wane, unemployment rose, the government printed more money to pay debts, and hyperinflation consumed the entire German economic system until it finally collapsed! The collapse wiped out the middle and upper middle class finances in Germany. Other nearby countries whose economy were not tied to the Gold Standard also decayed until sound money - hard currency - was set to maintain a new and stable economy.
The next country experiencing trouble in the economy that could lead to hyperinflation is the United States of America. With recent economic bubbles popping, banks failing, corruption in both U.S. governmental and banking bailouts the United States as well as the entire world is affected by these economic shakeups. The massive amounts of dollars being flooded into the economy most likely will have a inflationary impact on the economy. Too many dollars into the system could result in hyperinflation and the complete collapse of the dollar!
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