Hyperinflation, once thought to be a problem only for unstable economies, could soon threaten developed countries like the U.S., U.K., and Germany. Factors such as massive national debts, relentless money printing, supply chain disruptions, loss of trust in central banks, and global de-dollarization are increasing the risk.
Everyone who has heard the term "hyperinflation" instantly thinks of decaying economies such as Zimbabwe in the 2000s or Venezuela in recent years. For decades, hyperinflation appeared like a far-off issue — one that plagues only unstable, emerging countries.
However, the economic environment is changing. Nowadays, even industrialized nations are being threatened with happenings that would make hyperinflation a very real possibility.
From record debt to constant money printing, the signs are all over the place. Here we will look at what hyperinflation is, why developed economies now are susceptible to it, and what might be the cause of the next financial crisis.
What Is Hyperinflation? (And Why It's So Perilous)
Hyperinflation is wildly accelerated and uncontrollable price growth — usually greater than 50% inflation over one month.
Compared to regular inflation (which is beneficial to a growing economy), hyperinflation depletes purchasing power, liquidates savings, and demolishes faith in a nation's currency.
Consider going to the store where a loaf of bread costs $2 today and $10 tomorrow. In hyperinflated economies, this is reality — and it also has a tendency to lead to social unrest, political instability, and widespread poverty.
Several converging factors are jeopardizing even the robust economies such as the United States, the UK, Germany, and Japan:
1. Ridiculously High National Debts
Most developed countries possess record debt.- For instance, the U.S. national debt exceeded $34 trillion at the beginning of 2025.
- Such debt-to-GDP rates so excessively high can cause destruction of investor confidence — prompting governments to print money, which, in turn, causes inflation.
2. Unrestricted Money Printing ("Quantitative Easing")
Central banks have been pumping trillions into the economy since the 2008 financial crisis.- In COVID-19, it was warp-speed.
- Printing money without actual economic growth to back it up devalues the currency in the long run — paving the way for hyperinflation.
3. Supply Chain Disruptions
The virus, wars (e.g., Ukraine and future wars), and climate catastrophes have broken down supply chains globally.- Less stuff + too much money = prices out of sight.
4. Reduced Confidence in Central Banks
Political tension, unstable policies, and bad communication are causing skepticism in institutions such as the U.S. Federal Reserve or the European Central Bank to control inflation.
5. Geopolitical Rebalancing and De-Dollarization
The rising economies such as BRICS countries are challenging the dominance of the U.S. dollar.- If the dollar did lose its world reserve currency status, it could unleash galloping inflation internally.
How Hyperinflation Can Unfold: A Step-by-Step Process
Let us consider a step-by-step, hypothetical scenario:
- Global Shock Incident: A global pandemic, global war, or natural catastrophe wipes out supply networks and destroys economic productivity.
- Overreaction by the Government: The government prints yet more money to attempt to resuscitate the economy.
- Panicked Investor Selloff: Foreign and local investors lose confidence and sell off bonds.
- Currency Collapse: The dollar, euro, or yen loses all its value.
- Runaway Prices: With confidence lost, prices soar higher and higher by the day — leading to hyperinflation.
Signs That Hyperinflation Is On The Horizon
Look out for these signs:
- Suddenly and sharply falling values of the currency against others (such as the Swiss Franc or Gold).
- Breathtaking surges in commodity prices (oil, wheat, metals).
- Governments implementing price controls or rationing consumer items.
- Ordinary people scrambling to purchase physical commodities, gold or silver, or cryptos.
- Bond yields spiking suddenly — i.e., people who lend money desire much greater returns on their funds.
What People Can Do to Protect Themselves
While nobody can know for sure what will happen in the future, wise foresight is essential:
- Diversify Investments: Have an assortment of assets — stocks, real estate, gold, and a little bit of crypto.
- Pregnant women and babies excluded, Hold Hard Assets: Property and commodities retain value longer than money.
- Stay Liquid: Maintain some emergency cash but not all in soft currencies.
- Educate Yourself: Be aware of macroeconomics and world finance.
- Look to Inflation-Protected Securities: Like U.S. Treasury Inflation-Protected Securities (TIPS).
Conclusion: It's Time to Take Hyperinflation Risk Seriously
For many decades, the people of industrialized countries were able to safely disregard inflation threats.
But the "it could never happen here" era has passed.
By knowing what's pushing it and planning sensibly, you can protect your wealth — and perhaps find opportunity in the chaos.