STATS on INFLATION and HYPER-INFLATION:

The U.S. has seen deflation during 14 or 12.1% of the last 115 years and flat prices
during 8 or 7% of the last 115 years. 93 or 80.9% of the last 115 years were inflationary.

During the 1800s, the U.S. saw deflation during 40 or 40% of 100 years and flat prices
during 37 or 37% of 100 years. Only 23 or 23% of 100 years were inflationary.

Between 1900 and 2014, real U.S. GDP was negative during 9 or 64.3% of deflationary
years.

During the 1800s, real U.S. GDP was negative during only 5 or 12.5% of deflationary
years.

Deflation was 3 1/2X more common during the 1800s than the last 115 years.

When deflation occurs today, real GDP is 5X more likely to be negative than in the
1800s.

Between 1800 and 1900:

U.S. GDP per capita tripled from $90.64 per person to $272.90 per person - an increase
of 201%.

The U.S. national debt per capita only increased from $15.66 per person to $28.08 per
person - an increase of 79.3%.

U.S. GDP increased 2 1/2X faster than the U.S. national debt.

The U.S debt/GDP ratio declined from 17.3% to 10.3%.

The U.S. consumer price index (CPI) declined 50%.

Between 1900 and 2014:

U.S. GDP per capita increased 194X to $52,986 per person.

The U.S. national debt per capita increased 1,884X to $52,891 per person.

The U.S. national debt increased nearly 10X faster than U.S. GDP.

The U.S debt/GDP ratio increased from 10.3% to 99.8%.

The U.S. consumer price index (CPI) increased 1,300%.

In the 1800s when the U.S. was on a gold standard, deflation coincided with positive real
GDP growth 87.5% of the time. Deflation would occur when the production of goods was
growing faster than demand. Prices would fall but America's standard of living would
rise as Americans could afford to purchase more goods/services with their
income/savings. Deflation was overall very positive.

The gold standard of the 1800s forced the U.S. government to spend within its means.
After ending the gold standard, the U.S. government began to increase spending and debt
levels faster than economic growth. As the debt/GDP ratio rose, it became necessary to
create massive monetary inflation - just to keep the government afloat.

Today, deflation only occurs during the collapse of an economic bubble - created by the
Fed's artificially low interest rates and artificial government stimulus. Therefore,
deflation today almost always coincides with a declining GDP.

A prolonged period of rising interest rates, deflation, and declining GDP would put the
U.S. at risk of a debt default. The U.S. government is doing everything possible to avoid
this, but the eventual outcome will be hyperinflation - it's the only alternative to deflation
when you have an unstable economy that desperately needs to balance itself out.

source: www.inflation.us