I previously discussed some lessons to learn from the currency crisis underway in Belarus. Zero Hedge has more insight into what is happening there, and warns of an impending hyperinflation there.
"Ultimately, Belarus will succumb to hyperinflation, as will each and
every other government seeking to devalue its currency (hint: all of
them): "Unless Belarus heeds Russia’s call for mass privatization
of state assets, it is headed for “hyperinflation, massive un-
and under-employment, and a shutdown of production,” VTB’s
Moiseev said. The ruble will slide to 10,000 per dollar, he
added." Of course, this is the primary side effect of attempting to
avoid formal bankruptcy through currency devaluation. And all those who
continue to believe deflation is an outcome that will be allowed by the
Fed, need to look just to the former Soviet satellite to see what lies
in store for everyone currently doing all in their power to devalue
Note that the situation has become so dire that the nation's assets must be sold to avoid hyperinflation. The Belorussian government has kicked the can down the road long enough that they've found themselves backed into a corner with essentially only two options: sell their sovereignty or hyperinflation.
I wonder if we've gone beyond our tipping point here in America?